The high cost of oil and gas and their knock-on effect on inflation may have sent most of the UK tumbling into recession, but Aberdeen is set to enjoy a significant economic windfall as its North Sea industries enjoy a period of boom.
Estate Agency Knight Frank has highlighted the way the commercial property market has enjoyed an upturn in the Granite City. It said the sector is starting to “return to rude health” after the pandemic, with over 400,000 sq ft expected to be exchanged this year, more than double the 2021 total.
The largest offerings include 223,000 sq ft of space spread over 37 units at the Wellheads Industrial Estate next to the airport, with existing occupiers including firms like Schenker, Contract Solutions, Aberdeen Web and Babcock Mission Critical Services Offshore.
Another 200,000 sq ft of warehouse and office space is being marketed at Aberdeen Energy Park and Aberdeen Innovation Park, spread across 13 buildings.
Firms taking up new premises may make use of fittings like sliding doors and room dividers to configurate office space according to their needs and desires.
Capital markets partner at Knight Frank Scotland Euan Kelly commented: “A lot of quality stock is becoming available to buy in Aberdeen, with activity in the North Sea picking up on the back of the high oil price.”
It may be imagined that a recession will ultimately bear down on oil prices as demand would fall as business activity is reduced. But, while it is widely accepted that the UK is now entering an economic contraction, the same is not true in countries comprising the major North Sea oil export markets. Indeed, the UK is the only leading economy with GDP still below its re-pandemic level.
In the meantime, supply-side issues that have pushed oil prices up are likely to remain a major concern as long as the Ukraine war continues and attendant sanctions on Russia remain.
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