WoodMac seals deal for 30,000-square-foot HQ in landmark Edinburgh building
“As staff continue to return to the office, the ongoing leasing momentum at Waverley Gate demonstrates the demand for prime office space in Edinburgh” – Matthew Milroy, Kennedy Wilson
Energy consultancy Wood Mackenzie is taking space in a landmark Edinburgh building for its headquarters in a boost for the city’s office market.
Property investment firm Kennedy Wilson said it had signed a 15-year unbroken lease commitment with the consultancy - popularly known as WoodMac - for 30,000 square feet at Waverley Gate, which previously housed the capital’s central post office.
Confirmation of the leasing deal follows a total of 113,000 sq ft of lettings to five occupiers at Waverley Gate, bringing the newly refurbished 200,000-square-foot prime office building to 95 per cent occupancy.
Life and pensions firm Royal London has taken 25,000 sq ft on a 15-year lease and Gallagher, the global insurance, risk management and consulting services provider, has relocated its Edinburgh operations to Waverley Gate, occupying 6,500 square feet on a ten-year lease. Software company Forrit and the Scottish Government have signed new ten-year leases for 10,000 sq ft of office space each. Additionally, Amazon has agreed to renew its lease at the historic building, occupying a total of 60,000 sq ft.
Kennedy Wilson said that since acquiring the building in 2022, it has invested in the property to provide “first class amenities and excellent sustainability credentials”. The building includes four large roof terraces, shower facilities, a café and basement level gym.
Matthew Milroy, managing director at Kennedy Wilson Europe, said: “As staff continue to return to the office, the ongoing leasing momentum at Waverley Gate demonstrates the demand for prime office space in Edinburgh, where supply remains extremely constrained.
“We identified an opportunity to invest in the property, repositioning it further to improve its sustainability credentials and attractiveness to occupiers. As a result, we’ve maintained very high occupancy and grown income, whilst also setting a record rent for Edinburgh at the end of 2024.”
Kennedy Wilson was advised by JLL and Cushman & Wakefield.
Recently it emerged that Edinburgh’s office market was showing “signs of optimism” amid a string of letting deals. Significant recommitments from some of the city’s largest employers have been complemented by increased activity from smaller businesses securing office space, the latest snapshot from property consultancy JLL noted.
Companies were said to be increasingly planning well ahead of lease expirations to secure suitable space, taking advantage of pre-let opportunities and making early strategic decisions amid a constrained market.
Angus Fitzpatrick, a surveyor at JLL in Edinburgh, said: “Despite the shortage of new prime office developments in Edinburgh, we are still seeing positive trends in some areas of the market which is helping to drive activity. Edinburgh’s growing reputation as a place for emerging energy firms to thrive has contributed to several notable deals taking place this year in the city.
“But with high-quality space a scarcity, the case for new developments remains strong,” he added. “It’s important that businesses of all sizes factor this competition for space into their plans for the coming years as we’re increasingly seeing businesses strategising about their next office steps up to five years in advance of lease events.”
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