The first phase of a £5.5 million refurbishment at Edinburgh's Exchange Place 2 is nearing completion, delivering almost 20,000 square feet of Grade A office space across three floors from next month. The building, in the city's Exchange District, is being marketed by Knight Frank and EYCO.

Knight Frank, headquartered in London and founded in 1896, is a global property consultancy operating 244 offices and employing more than 7,067 professionals across five continents. EYCO is an Edinburgh-based commercial property consultancy jointly marketing the scheme.

The refurbishment includes a new reception area, a wellbeing hub, and the installation of 80 cycle racks and a bike repair station, with the building targeting an A energy performance certificate rating.

Work on the second phase of the refurbishment will start next year, with delivery expected by next summer, adding a further 38,000 square feet of Grade A space across the building's upper four floors.

Figures from Knight Frank put Grade A office vacancy in Edinburgh city centre at just 2.7 per cent, with limited additional supply in the pipeline to meet demand.

The structural driver is phased delivery, releasing completed lower floors to occupiers now while work continues on the upper floors, rather than holding the whole building back until both phases finish.

"Exchange Place 2's refurbishment provides much-needed, high-quality office space in Edinburgh city centre. With demand for Grade A space continuing to outweigh supply, Exchange Place 2 will bring a welcome boost to occupiers looking for quality accommodation in central Edinburgh," said Toby Withall, partner at Knight Frank Edinburgh.

"We are delighted that the refurbishment of Exchange Place 2 is well underway and, with 57,882 square feet of Grade A space available over the next 12 months, we will be well placed to meet the demand of all occupiers," said Neil McConnachie, managing partner at EYCO.

For the sector, the Exchange Place 2 scheme illustrates how Edinburgh landlords are phasing refurbishments to bring Grade A space to market faster in a city centre where vacancy remains historically tight.

Source: Scottish Construction Now / The Scotsman