Flitting lawyers keep office deals moving

PERIPATETIC lawyers have been the mainstay of the Edinburgh office market for a number of years, taking advantage of the struggling market to pick up some good deals.

As the year closes and the city's office market is beginning to look healthier it has been given a further boost by yet another firm of lawyers taking prime space.

In a deal that has not yet been officially announced, Brodies has taken 16,000sq ft of prime space at 50 Lothian Road in the Clydesdale Bank Plaza. The space has been vacated by the American banking firm State Street, which is decamping to its 100,000sq ft headquarters building in Edinburgh's Ferry Road.

Brodies will be housing only part of its operation in the new premises – legal rival Burness is already in the building – and will still be based at Atholl Crescent, where its lease expires in seven or eight years' time.

It is paying a rent of £27 per sq ft in a deal put together by CB Richard Ellis, acting for State Street, with Eric Young for Brodies.

Also this month it has been confirmed that Shepherd & Wedderburn is to move in the first half of next year from its Edinburgh headquarters at Saltire Court to new offices at Exchange Crescent. It is taking 58,000sq ft for its staff of 400 and needs the enlarged premises because of its expansion.

Biggart Baillie will be moving early in the new year to 18,235sq ft offices at Lochrin Square, the joint-venture development between Gladedale Capital and Scotmid. The space across three floors will accommodate up to 120 staff. Maclay Murray & Spens last week moved into a 50,000sq ft space at Gladedale's Quartermile scheme to complete a busy year of flitting plans for lawyers. There could be more on the way.

Morton Fraser is believed to be looking for 40,000sq ft with a view to moving out of its Queen Street premises, and DLA Piper, with offices in Rutland Square, is said to be looking at a number of options.

Three years ago Tods Murray moved from Queen Street to new offices at Edinburgh Quay and last week Tods Murray had a visit from Aberdeen lawyers Paul & Williamson, who are based in a town house and are looking to move. They knew that Tods Murray was delighted with the new premises, had a look around and returned north, suitably impressed.

The Edinburgh office market, however, is changing, with little Grade A supply in the pipeline so landlords could have the upper hand in negotiations and they will be seeking more than the current offerings of £28.50 per sq ft, with a couple under negotiation already on their way to £30.

Chris Cuthbert, head of office agency for Cushman & Wakefield in Edinburgh, says: "With no stock in Edinburgh city centre reaching practical completion in 2008, and only a very nominal amount of stock coming through in the more fringe locations (where rental levels are pitched at a discount to the city centre], it is looking likely that £28.50 per sq ft will be exceeded, during 2008, for the product sitting vacant in the market."

This is what is in the Edinburgh pipeline: Kilmartin – about 65,000sq ft Grade A Leith Street development due for completion in Q2 2009; Scottish Widows Partnership – Exchange Place development of about 200,000sq ft due to complete in Q2 2009; Bellhouse Joseph/Carlyle Group – Tanfield development 180,000sq ft due to compete in spring of 2009; and Grosvenor/AMA – Springside, Fountainbridge, 48,000sq ft due to complete at the end of 2009.

NORD CENTRE TURNS TO PORT

ABERDEEN Harbour Board has acquired from JPR Services the leasehold investment of the Nord Centre for an undisclosed "significant" sum. The 8.25-acre centre is a mix of industrial and office buildings occupied by oil-related and engineering companies. Chartered surveyors J&E Shepherd acted for the board.

ROUNDELWOOD, the health and lifestyle spa in Crieff, has been sold by The Good Health Association (Scotland) to the Inverness-based Henderson Group (represented by Anderson Strathern) for over £1.75 million. Knight Frank acted for the vendor.

THE Queensbury Hotel in Dumfries has been sold by Playlife Properties to financial services group Meghraj for £1.2m, reflecting a net initial yield of 6 per cent. It is let to Barracuda Pubs at an annual rental of £75,000. King Sturge represented Playlife, with SMPA for Meghraj.

FASHION label Fred Perry has chosen Buchanan Galleries shopping centre in Glasgow for its first Scottish store, taking a 1,465sq ft unit for ten years at £185,000 a year. Michael Peddar and Company acted for Fred Perry, CBRE for Buchanan Galleries.

DESIGNER eyeglasses specialist Oscar&Fitch, represented by Culverwell, has taken a ten-year lease on a 1,241sq ft unit at Multrees Walk, Edinburgh. MacGregor Chartered Surveyors and Cushman & Wakefield acted for the landlord.

THE Resolution Group Pension Scheme and Pret-a-Manger have agreed a 15-year lease on 3,415sq ft of ground and basement at 51 Hanover Street, Edinburgh, at an annual rent of £123,000. Pret-a-Manger surrendered a short-term lease and took a longer one at a significant rental increase. Winton Faith acted for the landlord.

HAIRDRESSER and beauty retailer Aveda is to open its first store in Glasgow, taking 2,355sq ft for ten years in the GPO Building at a stepped rent which will reach £52,000 in year five. SGM Property Consultants acted for landlords GPO Estates, Culverwell for Aveda.

THE Kilmartin Property Group has acquired (no price disclosed) from Teague Investments the John Smith Halls on Riego Street, Edinburgh, home to 265 student residences under a lease to Napier University. Kilmartin was represented by CB Richard Ellis and Shepherd & Wedderburn; Ryden and Bell & Scott advised Teague.

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