Over 700,000 sq ft of office space was transacted in the city in 2024, taking total take up for the year to approximately 10% above the five-year average, its latest research shows.

Notable deals included Diligenta’s acquisition of 30,327 sq ft at Standard Life House and 3 deals totalling 87,000 sq ft at 6 St Andrew Square.

Regears comprised approximately 400,000 sq ft of additional activity, with the shortage of available Grade A space driving occupiers to engage in short-term lease extensions in order to allow pipeline opportunities to be delivered into the market.

And with no new builds currently under construction and a number of occupiers facing lease events as well as the introduction of new sustainability standards before 2030, JLL predicts that demand for such space will only grow in the years to come, presenting an opportunity for proactive developers to reap the benefits.

Craig Watson, director at JLL in Edinburgh, said: “It’s been another productive year in the Edinburgh office market, with the persistent shortage of supply encouraging occupiers to move quickly and, in some cases quietly, to secure the best space and deals for their business.

“The high cost of borrowing and sticky inflation mean that it’s undoubtedly a challenging time in the property cycle to commence a speculative office development – yet with the dearth of sustainable options continuing to drive rental growth, a brave developer starting a new-build or refurbishment project in 2025 would be well placed to reap the rewards upon completion.”