Edinburgh’s largest single office building is undergoing a major refurbishment to meet “unprecedented demand” in the capital.

Record-low vacancy levels have triggered a contemporary take at One Lochrin Square, the former site of Scotmid HQ.

The work will see the ground floor being “defurbished” to a stripped-back attic-style accommodation favoured by technology, media and telecoms (TMT) firms.

UBS Asset Management, which handles the property on behalf of its owners, said this finish is commonplace in London but is an Edinburgh first. The remaining upper floors of the 62,416sq ft building, being marketed by property consultants JLL and Knight Frank, are being finished to a traditional Grade A specification, with project completion this December.

Craig Watson, director at JLL in Scotland, said: “One Lochrin Square’s owners have seized the opportunity to reposition the property within Edinburgh’s changing business landscape by providing an open plan finish which has never been speculatively delivered before in the city. With 30 per cent of Edinburgh office space take-up so far in 2016 accounted for by the TMT sector, followed closely by Professional Services with only 21 per cent of the market, this refurbishment will ensure that the property stands out from the competition and appeals to some of Edinburgh’s younger and more dynamic sectors such as TMT. Edinburgh’s commercial property market is faced with a severe shortage of city centre Grade A stock over the next 12 months so the building is well placed to take advantage of any larger occupier requirements.”

Toby Withall, partner at Knight Frank, added: “A refurbished One Lochrin Square of approximately 63,000 sq.ft. will provide an occupier with the only refurbished Grade A office building with its own front door in central Edinburgh. In the context of a market where new or refurbished Grade A product is fast diminishing and occupier interest is increasing, One Lochrin Square is set to benefit and ensure there is prime stock for the more diverse range of active occupiers in the Edinburgh market.”

JLL also said that it has been appointed by EDI Group, the arm’s length property development arm of the City of Edinburgh Council, to sell a hotel site at the city’s canalside India Quay regeneration scheme.

Director Keith McBain said: “The site is ideally placed to not only capitalise on what will be a new mixed-use quarter, but also to penetrate the thriving Edinburgh hotel market. As such, we expect to see a high level of interest from investors and owner operators.”