The recovery of the Scottish commercial property market is well underway but occupier behaviour differs in the country’s three largest cities, claims leading agency FG Burnett.
While investors in Scotland appear to be taking time out until the independence debate is settled, FG Burnett director David MacLeod believes it’s business as usual for occupiers in Aberdeen, regardless of political events.
He said: “It is well documented that across Scotland the majority of investment buyers are watching from the sidelines and it could be said they are pausing for breath until after the vote on 18 September.
“But in my experience there is a marked difference in occupier sentiment, with office and industrial occupiers in Edinburgh and Glasgow being more cautious about the Referendum than occupiers in Aberdeen.”
MacLeod, who advises clients such as Drum Property Group, Total and Rockspring, believes Aberdeen’s unique position as European oil capital and home to many of the world’s largest oil and gas exploration firms, has a direct impact on the mindset of Aberdeen occupiers.
He explained: “The outcome of the Referendum is rarely mentioned by occupiers in Aberdeen in connection with decision making and that is surely a reflection of the global nature of the energy sector. Companies working on a global scale in the energy sector have decades of experience in a variety of legal, financial and political jurisdictions, as well as operating in different cultures and in extremely volatile geo-political situations. The independence debate is obviously on the agenda, but does not seem to be affecting deal flow.
“We have experienced a raft of new international entrants to the UK Continental Shelf in the past year or so and the increasing level and quality of exports from Aberdeen-based companies to international markets all point to these businesses looking at the bigger picture.”
While acknowledging the property market in central Scotland differs from Aberdeen, MacLeod claims it adds a different perspective to the independence debate: “This experience is perhaps more common in Aberdeen than in Edinburgh or Glasgow but it shows that regardless of politics, there will always be a way forward, and if the prize is big enough, business will work out a solution.”