Edinburgh based property firm Cosmopolitan Investments has confirmed that it has let the remaining space in its Birch House development in Scotland’s capital city. The last 3,500 sq ft of space has been taken up by children’s charity Barnardo’s, with the agreement of a 10 year lease with an optional break clause in the fifth year.
Barnardo’s is the second charity to lease commercial space within the 10,000 sq ft Birch House office development, and will join ENABLE which has a neighbouring 1,154 sq ft unit on a five year lease. However, Barnardo’s will pay less rent per sq ft, with the £9.50 sum comparing favourably to ENABLE’s £12.
Managing director of Cosmopolitan Investments, Iain Mercer, spoke of his pride at the success Birch House has had in leasing available space.
He said; “Less than a year ago we had an empty building and now it is fully let at market rents to four excellent covenants.
“Clearly we are delighted at the success of the letting campaign, given that, in general terms, tenant demand is still well down on what it was five years ago.
“The ‘third sector’ is becoming increasingly important to the conventional business space market – in addition to serving the public good, Barnardo’s is bigger than some quoted companies.”
Admittedly, outside London, the commercial property market is moving more slowly than in the days pre-recession, yet the case of Birch House indicates that this trend is gradually beginning to reverse. The development has only been open for nine months, so letting the full space in under a year is hugely impressive, especially as the office block is not in the city centre where space is generally in higher demand.
With positive signs beginning to mount for landlords and developers, it can only be hoped that the UK continues to prove a draw for foreign investors and businesses seeking a foothold in Europe. However, with markets in countries such as Spain, France and Germany also beginning to show evidence of recovery, there is no room for complacency.
