Edinburgh’s Office Stock 2010 :. current characteristics and recent trends .

Planning Information, Services for Communities, City of Edinburgh Council March 2013

Edinburgh’s Office Stock 2010 : current characteristics and recent trends

CONTENTS :

1 Summary findings

2 Introduction paras. 1 – 4

3 Definitions and sources paras. 5 – 10

4 Scope for further research paras. 11 – 14

5 Total floorspace and trends paras. 15 – 20

6 Geographical distribution paras. 21 – 40

7 Unit sizes paras. 41 – 49

8 Vacant office space and vacancy rates paras. 50 – 58

9 Business activity of office occupiers paras. 59 – 70

10 Listed building status paras. 71 – 74

11 Age of property / date of construction paras. 75 – 80

12 Losses from office stock paras. 81 – 89

Appendices :

1 Listing of larger office buildings

2 Listing of larger office occupiers

3 Listing of major losses of office space

Summary findings

Total floorspace and development trends y As at 2010 there were 1.93 million sq.m. of office floorspace in Edinburgh (excluding offices ancillary to other activities such as hospitals, colleges, research laboratories) y This represents a 63% growth from the 1.18 million sq.m. available in 1986. y Much of the additional space was developed between 1989 and 2003. The total stock only grew by 3% between 2004 and 2010, as the rate of new development declined while losses from offices to other uses gathered pace. y Development of new offices, through new build and change of use, fell from an average of 62,000 sq.m. per year pre-2004 to 40,000 sq.m. per year during 2004-2010. In contrast, conversions and redevelopment away from office use are estimated to have grown from 24,000 sq.m. to 30,000 sq.m. per annum. Location y Over the last 20 years a major new office hub has emerged at Edinburgh Park / South Gyle on the western outskirts of the city, close to the airport and trunk road network. Some growth has also occurred in Leith, anchored by the Scottish Government at Victoria Quay. However, Edinburgh city centre remains the primary office location and commands the highest rents. y The City Centre (as defined in the new Edinburgh Local Development Plan) is home to 45% of the city’s office space, with a further 14% at Edinburgh Park / South Gyle, 10% in the wider Leith area, and 5% in the Second New Town / Canonmills area. y The centre of gravity for Edinburgh’s city centre offices has shifted markedly westwards towards the new office quarter at The Exchange / Fountainbridge / Haymarket. This area now has 13% of the city’s total office provision, compared with just 3% in 1986. Meanwhile the First New Town’s contribution has fallen from 17% to 12% y 38% of the office stock falls within the boundaries of the Old and New Towns of Edinburgh World Heritage Site, while a further 15% lies within 250 metres of the boundary. y 51% of the stock is located within areas of very high public transport accessibility. Size distribution – premises, buildings, occupiers y 49% of office premises are smaller than 100 sq.m.; however nearly half of all office space is in premises larger than 2,000 sq.m. y In 2010, there were 333 office buildings with a floorspace larger than 1,000 sq.m., and these provided 71% of the total floorspace. y 94% of businesses or organisations in the city occupy office accommodation extending to less than 1,000 sq.m.; but the 207 organisations which occupy more than this amount account for nearly two-thirds of the total floorspace provision. Well over one-third of the total is occupied by just 16 very large private and public sector organisations. Vacancies y Over 300,000 sq.m. of office space was recorded as unoccupied in 2010. y The office vacancy rate then stood at 16%, compared with 11% in 2004 and 6% in 1986. Growing amounts of outdated space co-inciding with the economic downturn are likely to have contributed to this. These figures may under-state the scale of unused space, as additional space may be occupied but not used productively. y Vacancy rates are above average in listed properties and properties dating from the 1960s and 1980s. Nevertheless, 34% of the total unoccupied space was in buildings less than 20 years old (i.e. built 1990 onwards) y In volume terms, the largest amounts of vacant stock in 2010 were in the First New Town and Edinburgh Park / South Gyle (each with more than 40,000 sq.m. unoccupied). Business activity y Four key business sectors together accounted for 71% of occupied space in 2010: (i) financial services; (ii) business services (legal, accountancy, management consultancy etc.); (iii) creative & cultural (advertising, media, architecture, design etc.); and (iv) public administration. y Public administration was the biggest sector in 1986, with 30% of the total. However, this declined to just 19% by 2010, with a real reduction in floorspace. For a long period during the 1990s and early 2000s the financial services sector was the dominant force in the demand for new office space, with its share growing from 19% in 1986 to 29% in 2010. y More recently, business services have come to the fore as a key driver of demand. Their share of total floorspace in 2010 was 12% - a slight rise from 11% in 1986. The fastest growing sector, though from a lower base, has been the creative and cultural sector (11% in 2010 cf. 4% in 1986). Listed building status y The proportion of office space in listed buildings fell from 52% in 1986 to 33% in 2010. Since 2004 the total amount of listed office space has also been in decline. Age / date of construction y Construction date has been researched and analysed for 90% of the city’s office space. y More than 38% of office space in the city is in buildings constructed since 1990. y A further 16% was built between 1960 and 1989, and potentially some of this may soon need replacing by premises which are more suited to modern requirements. y At the other end of the age spectrum, 32% dates back before 1918, including 18% from the pre-Victorian era. Again, it is likely that some of this will not remain suited to office use. Losses from office stock y Although there have been substantial additions to the office stock over the last 25 years, these have been offset by losses, with losses actually exceeding additions in some recent years. y Between 2000 and 2011, 33% of ‘outflows’ from the office stock were pre-Victorian properties. Conversion to other uses accounted for virtually all of these (i.e. retaining the building shell but with varying degrees of internal alterations to suit the new use). y However, 28% of losses were built as recently as the 1970s and 14% in the 1960s. A high proprtion of these took the form of wholesale redevelopment. y Housing was the replacement use for 48% of the office space lost between these dates, with hotels and other visitor accommodation accounting for a further 24%. Retail and educational uses have also taken over significant office space, although lagging well behind residential and hotels. Introduction

1 Edinburgh is one of the UK’s most important office hubs, with an economy that is highly dependent on office accommodation, and an office estate that contributes to the economy in its own right in terms of property management and maintenance. Furthermore, offices have a significant impact on the wider environment, exerting major influences over (for example) traffic generation, energy consumption, design quality and the overall quality of the public realm. Larger concentrations of offices may host very substantial daytime populations which support surroundings shops and other services. 2 Despite their importance, relatively little information has been available until now on the characteristics of Edinburgh’s office stock, even to the extent of uncertainty what the total stock is. This contrasts with the situation for other property sectors, such as housing, shops and hotels, where much more comprehensive is available. 3 An understanding of the city’s office stock is an important starting point in helping to assess future requirements for office space. For example, it is helpful to know how much space is occupied or vacant, which employment sectors (and individual organisations) generate the greatest demand for space, how much space is located in the prime locations, and what the age and quality of existing premises is. Whilst there are records of new developments which have added to the stock over the last quarter of a century, this also needs to be complemented by a better insight into outflows or losses from stock. 4 In order to fill these information gaps, the Planning Service has compiled a database of office premises within the city, based on a combination of planning records, the commercial valuation roll, commentaries by local property agencies, on-site inspection and on-line research. This report summarises some of the key characteristics of the office stock derived from an analysis of this database.

Definitions and sources

5 The database primarily focuses on the position as at 2010, which is the date of the commercial valuation roll extract provided by the Lothian Valuation Joint Board (LVJB). This extract also provided the basis for an analysis of the city’s retail premises, which is already available on the Council’s web site at : http://www.edinburgh.gov.uk/info/20120/planning­ development_activity_monitoring/1413/development_activity_monitoring/7 However, historic valuation roll data from 1986 and 2004 has also been incorporated into the database, and this makes it possible to identify trends in the amount, location and occupancy of offices over a 24 year period. 6 Relatively little new office development has been completed since 2010, although there are significant exceptions such as The Cube (Leith Street), West Port House and the newly completed Atria development next to the Edinburgh International Conference Centre in Morrison Street. The 2010 figures therefore remain reasonably relevant, although the continuing economic slowdown may have further impacted on vacancy rates. 7 It is important to note that the coverage of the database is limited to premises categorised as ‘offices’ in the LVJB valuation roll property description. This covers the vast majority of premises which fall under planning Use Class 4 (‘Business’), and some in Use Class 2 (‘Financial, Professional and Other Services’). However, Class 2 relates to uses which are appropriate in a shopping area and where the services are provided principally to visiting members of the public. As some of these are in smaller shop units, the LVJB tends to classify them as shops rather than offices, and they are not included in the office database. 8 The database does not include offices which are ancillary to other primary uses of land or buildings – for example universities, colleges, hospitals, factories, or the Scottish Parliament buildings. It also excludes research laboratories, even though these fall within the Class 4 ’business’ Use Class. Taking these exclusions into account, it could be argued that the analysis presents a relatively conservative view of current office provision. 9 The floorspace figures used in this report are primarily those attached to the commercial valuation roll, where this is available. These refer to the gross lettable area. In general they are lower than the floorspace figures in planning records, which usually measure the gross internal floor area, inclusive of communal lobbies, plant and storage areas etc. 10 Take-up of offices is usually monitored in terms of net floorspace, which is the area exclusively occupied by a business or organisation for its own productive purposes. Commercial property agents tend to adopt a working assumption that net office floorspace is about 80% to 85% of gross. Given that the LVJB figures are already lower than the gross planning application floorspace in most cases, it is considered that the higher assumption, i.e. 85%, should be applied when converting the figures in this report from gross to net.

Scope for further research

11 The analysis in this report is intended to fill some basic information gaps regarding Edinburgh’s office stock. However, there is still more that could be done to build on this initial work and further improve understanding of the issues that affect future demand and supply. Most likely this would entail joint research with local commercial property agencies, who have specialist knowledge of market trends and particularly the characteristics that future occupiers will be looking for. 12 Perhaps the most important outstanding need is a systematic assessment of the quality of current office space, based on age, layout, accessibility, environmental standards, running costs etc. Conventionally, offices are graded (‘A’, ‘B’ etc.) according to their suitability for modern requirements, and it would be helpful to reach a shared understanding of the amount and distribution of office space in each of these categories; also how this might change in the future and to what extent there is a mismatch with future requirements. 13 Further investigation may be warranted to establish the prospects for office space which currently lies vacant, i.e. to what extent is it capaple of meeting future occupier requirements, and what adaptations might be required to bring it up to standard ? How much vacant space is no longer suited to office use, and is likely to be relinquished to other uses ? Further information might also be gleaned on space which is not recorded as vacant, but which is occupied unproductively, perhaps in anticipation of future growth or perhaps because current market conditions militate against disposal. 14 Another potential area for future research is the energy efficiency of the current stock, as this will be significant in terms of building a ‘heat map’ for the city, and developing strategies for conserving energy and reducing fossil fuel consumption (e.g. through district heating schemes).

Total floorspace and trends 15 Over the 18 year period 1986-2004, the LVJB recorded a substantial increase in Edinburgh’s office stock, from 1.18 million sq.m. to 1.87 million sq.m. This continued to grow, though at a slower rate, reaching 1.93 million sq.m. in 2010 (Graph 1).

Graph 1 : Total office floorspace 1986, 2004 and 2010

floorspace (sq.m.)

2,500,000

1,930,400 2,000,000 1,868,500

1,500,000 1,184,200

1,000,000

500,000

0 1986 2004 2010

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

16 The late 1980s and early 1990s saw a considerable surge in office development in the city, focussed particularly in the ‘Exchange’ area in the vicinity of Lothian Road. This was followed by another sustained period of development between 1995 and 2003, which saw the emergence of a major new office hub on the western outskirts of the city, centred on Edinburgh Park and South Gyle. Annual office schedules produced by the City of Edinburgh Council (CEC) since the 1980s include annual completion figures which confirm these development peaks (Graph 2).

Graph 2 : Annual office completions in Edinburgh, 1985-2011 (square metres)

floorspace (sq.m.)

120,000

110,000

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 source : City of Edinburgh Council Office Development Schedules 17 According to the CEC figures total new office floorsapace completed between 1986 and 2004 amounted to 1.12 million sq.m., which was almost as much as the original 1986 stock. This rate of development, which includes change of use as well as new build, generated some 62,000 sq.m. of new office space per annum on average. Had this new development not been partly counterbalanced by some redundancy and conversion of older office space, the total stock would have risen to 2.30 million sq.m. by 2004. However, the actual floorspace of 1.87 million sq.m. recorded at this date suggests that floorspace went out of office use at an average rate of 24,000 sq.m. per annum. 18 Between 2004 and 2010, completions slowed down to an average 40,000 sq.m. per annum, giving a total of 0.24 million sq.m. of new space. Taking account of the actual stock of 1.93 million sq.m. in 2010, this indicates that losses of office space rose to 29,600 sq.m. per annum during this period, i.e. substantially offsetting new development, with net growth amounting to just over a quarter of gross. 19 A later section in this report looks at losses from stock in more detail, analysing information from planning records, such as the new use to which former office premises have been put. 20 It is important to acknowledge that the estimates of losses from stock can only be ‘ball park’ figures. This is partly because of the differing measures of floorspace used in planning records and valuation records (discussed previously), and the fact that the Office Development Schedule completion figures are not comprehensive but limited to developments of 500 sq.m. or larger. However, to some extent these considerations will work in opposing directions, and possibly counterbalance each other.

Geographical distribution 21 Maps 1 and 2 show the distribution of individual office premises in 2010 and 1986 (respectively), with the size of dots representing floorspace bands. These show that in 1986 Edinburgh had a relatively compact office core, characterised mainly by ‘period’ properties in the Georgian New Town, together with surrounding areas of Victorian and Edwardian development. 22 However, even in 1986 there were several outlying groupings of modern office buildings in suburban areas, for example at Ravelston Terrace, Gorgie, Chesser and Meadowbank. Large office buildings occupied by national government and its agencies made a significant contribution to the office stock both in the city centre and in outlying areas, for example the former New St. Andrew’s House at the St. James Centre, Argyle House near Tollcross, Saughton House in Broomhouse, and Pentland House at Chesser. Some large private sector organisations had also moved by this time to purpose-built offices outwith the traditional confines of the central core, e.g.Scottish Widows at Dalkeith Road and Lloyds Finance at Orchard Brae. 23 The 2010 map highlights how the central office core has expanded and shifted towards the west, initially prompted by a deliberate planning strategy in the mid 1980s to create modern office accommodation in the ‘Exchange’ area at Lothian Road. This was intended to meet the growing demands of a rapidly growing and increasingly service- orientated economy. This created a momentum for further growth which overspilled to adjacent areas west of the city centre, notably at Fountainbridge, Tollcross and Haymarket. This area has now established itself as Edinburgh’s prime office location, commanding the highest rents in the city. 24 The other major change since 1986 has been the establishment of a major new office hub in a parkland setting on the west side of the city. This achieved a remarkable transformation from undeveloped land to one of Scotland’s largest concentrations of employment in the space of little more than a decade. While the main focus has been at Edinburgh Park, again there has been overspill to surrounding areas such as South Gyle and Pentland Gait. The main attractions of this area were well specified, modern accommodation with good links to the airport and trunk road network (and later with its own rail station), all at relatively affordable rents. It appealed particularly to organisations with large numbers of ‘back room’ staff, who needed good working conditions and proximity to facilities (e.g. the Gyle shopping centre), but who didn’t necessarily require a ‘prestige’ address or the high density networking and personal contacts associated with the city centre. However, the growth of the West Edinburgh office hub has lost something of its momentum in the last few years, particularly since the onset of the economic downturn. 25 To a lesser extent there has also been growth of interest in the Leith area, which offers a variety of accommodation ranging from small studios to refurbished warehouses and modern purpose-built blocks. The relocation of the Scottish Government’s main administrative centre from the city centre to Victoria Quay at Leith Docks (1995) undoubtedly did much to stimulate interest in this area, which again benefits from relatively low rentals combined with good accessibility to the city centre. 26 These trends are illustrated more graphically by Maps 3 and 4, which show a simplified and smoothed picture of office floorspace distribution in 2010 and 1986. These maps actually depict the density of office floorspace within a 500 metre radius of every point in the city (based on straight line distances rather than road networks). The dominance of the city centre is apparent in both 1986 and 2010, but the later map clearly shows the shift of focus from the east end of the city centre (St. Andrew Square / St. James Centre) towards the West End / Fountainbridge / Haymarket. Equally the 2010 map emphasises the emergence of the major new office centre at Edinburgh Park / South Gyle / Gogar / Hermiston, bordering the City By-pass on the west side of the city. The increased activity in Leith is also evident. Map 1 : Location of office premises in 2010

Map 2 : Location of office premises in 1986

Map 3 : Office floorspace density 2010

Map 4 : Office floorspace density 1986

27 Table 1 sets out in more detail on how the location of offices has changed between 1986 and 2010. This is based on the zones shown in Map 6, which have been drawn purely for convenience to refelect the broad areas of the city where offices are concentrated or where development has occurred. For the most part the zones have no sighnificance in terms of planning policy. However, zones 1 to 5 combined do cumulatively correspond with the City Centre as designated in the new Edinburgh Local Development Plan (ELDP). The 5 zones within the City Centre comprise areas of different character which might be considered as distinct sub-markets : the First New Town, the West End, the East End, the Exchange / Fountainbridge / Haymarket area, and the Old Town / South Side area. (It should be noted, however, that even within these areas there are subtle differences in terms of marketing attractiveness between one street and another). 28 Some of the zones correspond broadly to the other strategic development areas identified in the ELDP and other Council strategies, notably West Edinburgh (zone 11), the Edinburgh Waterfront (zones 15 and 16), and South East Edinburgh (zone 19). 29 Most zones have shared in the large overall growth in office provision between 1986 and 2010, with just 3 showing a decline in overall floorspace : the East End of the City Centre (-24%), the Granton Waterfront (-23%), and ‘other’ west Edinburgh (i.e. outwith the main office locations, -10%). 30 The relocation of the Scottish Government administrative HQ to the Leith Waterfront contributed significantly to the decline in the East End of the City Centre. Overall, however, the City Centre saw its office stock increase by 39% over the 24 year period. The Exchange / Fountainbridge / Haymarket area was responsible for much of this growth, with office space increasing more than six-fold during this time. 31 The emerging office locations on the west side of Edinburgh saw growth rates of several hundred %, but from a low starting point. Similarly, the Leith Waterfront and South East Edinburgh enjoyed growth rates of more than 500% from a low base. The fastest growth in an established office location outwith the City Centre was in the Leith / Bonnington / Broughton area, which saw a very solid 75% increase. There was also significant growth of 52% in North Edinburgh (cf. 36% in East Edinburgh and 19% in South Edinburgh). Growth in the inner suburban areas surrounding the City Centre was relatively modest : 10% in Dean / Comely Bank, and 16% each in the Second New Town / Canonmills area and in Gorgie / Slateford. 32 Looking at the figures in a slightly different way, 34% of the net increase in office stock between 1986 and 2004 was accounted for by Edinburgh Park / South Gyle, with a further 8% in the neighbouring Newbridge / Airport corridor which includes the large new RBS headquarters complex at Gogar. 29% of the overall floorspace growth was in the Exchange / Fountainbridge / Haymarket area on the south west side of the City Centre. The only other areas absorbing a significant proportion of growth were Leith / Bonnington / Broughton and Leith Waterfront (respectively 8% and 7% of total floorspace growth). 33 As a result of all these changes, Table 1 shows that the City Centre’s share of the total office stock has fallen to 45%, compared with more than half the total in 1986. However, with the limited number of new developments since 2010 particularly focussed in the City Centre, it is likely that the Centre’s share will have edged upwards again over the last few years. 34 While the traditional office core in the First New Town remains important, its share has fallen from 17% to 11%. The West End and East End within the City Centre also play a less prominent role than they used to, with a combined market share of 12% in 2010 compared with 21% in 1986. Meanwhile the Exchange / Fountainbridge / Haymarket area has now established itself as the prime office location in the City Centre, with 13% of the city’s total office floorspace. Most of the space here is recently developed and has been built to modern standards in terms of layout, operational efficiency and running costs. Map 5 : Location of office premises in Edinburgh City Centre, 2010

Map 6 : Reference map for office locational analysis

Table 1 : Location of office premises in Edinburgh, 1986 and 2010 (ref. Map 6)

1986 2010 Location floorspace % of floorspace % of (sq.m.) total (sq.m.) total

City Centre : (of which :) 619,400 52.3% 860,100 44.6% First New Town 203,800 17.2% 227,800 11.8% West End 123,600 10.4% 127,500 6.6% East End 128,200 10.8% 97,800 5.1% Exchange / Fountainbridge / Haymarket 35,900 3.0% 253,500 13.1% Old Town & South Side 128,000 10.8% 153,500 8.0%

Leith / Bonnington / Broughton 76,600 6.5% 134,300 7.0% Second New Town / Canonmills 83,900 7.1% 97,400 5.0% Dean / Comely Bank 40,500 3.4% 44,500 2.3% Gorgie / Slateford 55,300 4.7% 63,900 3.3%

Edinburgh Park / South Gyle 13,300 1.1% 265,500 13.8% Newbridge / Airport / Gogar 6,900 0.6% 63,600 3.3% Queensferry / Kirkliston 5,300 0.4% 9,600 0.5% Currie / Balerno / Ratho 2,900 0.2% 17,600 0.9% West Edinburgh (other) 92,600 7.8% 83,600 4.3%

Leith Waterfront 9,900 0.8% 59,600 3.1% Granton Waterfront 19,300 1.6% 14,900 0.8% North Edinburgh (other) 35,500 3.0% 54,000 2.8% East Edinburgh 39,000 3.3% 53,000 2.7% South East Edinburgh 1,100 0.1% 10,800 0.6% South Edinburgh 82,600 7.0% 98,000 5.1%

EDINBURGH TOTAL 1,184,200 100% 1,930,400 100%

Note : The areas in this table are shown in map 6. They have been defined purely for analysis purposes, reflecting the distribution of offices within the city, and do not necessarily reflect policy zonings. However, the City Centre corresponds with the City Centre as defined in the draft Edinburgh Local Development Plan. Some other areas, e.g. Leith and Granto Waterfront, S.E. Edinburgh, correspond broadly to strategic development areas in the city.

35 In rounded terms, 3 office zones each accounted for about one-eightth of the total office stock in 2010 : Edinburgh Park / South Gyle (14%), Exchange / Fountainbridge / Haymarket (13%), and the First New Town (11%). 36 Leith and the Leith Waterfront combined are also a significant office location, together providing 10% of the total floorspace (cf. 7% in 1986). There is a relatively diverse stock within this area, dispersed across different locations rather than concentrated around a single core (e.g. with local groupings at Leith Docks, Commercial Street, Timberbush, Bonnington, Hopetoun) 37 Much of central Edinburgh falls within the Old and New Towns of Edinburgh World Heritage Site, inscribed by UNESCO in 1995. Hence a great deal of Edinburgh’s office space lies within the WHS, where there is a focus on ensuring that development does not jeopardise characteristics that give the site its ‘outstanding universal value’. Although much of the new office development in the Exchange / Fountainbridge / Haymarket area falls just outwith the WHS boundary, its close proximity is still a relevant consideration in many planning applications. 38 In 2010, 729,500 sq.m. of office space (or 38% of the total) was located within the WHS. However, a further 288,200 sq.m. (15% of the total) fell within a 250 metre ‘buffer’ just outside the WHS, and yet another 56,500 sq.m. (3%) fell within a distance of 250 to 500 metres outside the WHS. 39 Just over half the office stock (51%) is in locations with the highest level of accessibility by public transport. This is based on the recognised ‘PTAL’ methodology which takes account of volumes and frequency of services and proximity of bus stops / rail stations. PTALs range from 1 (lowest accessibility) to 6 (highest accessibility), as shown in Map 7. (note : the PTALs here do not include the new tram service which is scheduled to come into operation in 2014). The arterial bus routes through the city centre and the major rail hubs at Waverley and Haymarket stations are the main determinants of the highest accessibility area. A small area at Corstorphine and South Gyle, on the main routes heading west from the city, also falls into this top category. Part of the reason for the surge in office development to the west of the City Centre has been its excellent accessibility by both bus and rail services, enabling employees to reach their work easily from a very wide catchment area.

Map 7 : Office locations 2010 relative to public transport accessibility levels (PTALs) 40 Graph 3 shows the amount of office floorspace in the six different PTAL zones. The relatively small amount in the second highest accessibility zone (zone 5) reflects the fact that this is a fairly narrow belt encircling zone 6. The secondary concentrations in the middle accessibility zones (4 and 3) stem from concentrations of offices in locations such as Edinburgh Park, Leith, Crewe Toll, Orchard Brae and Chesser.

Graph 3 : Size distribution of office premises 1986 and 2010

floorspace (sq.m.)

1,200,000 980,600 50.8 % 1,000,000

800,000

600,000

356,300 400,000 274,300 18.5 % 14.2 % 226,300 11.7 % 200,000 44,000 49,000 2.3 % 2.5 % 0 6 5 4 3 2 1 public transport accessibility levels (PTALS) : 6 = highest ; 1 = lowest source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Unit sizes 41 This section looks at the size distribution of Edinburgh offices, based on 3 different measures : (i) the floor area of individual premises, as recorded for rating purposes by LVJB; this may include, for example, separate suites within the same building; (ii) the floor area of separate buildings, which share a common front door address or building name; (iii) the floor area used by different occupiers, sometimes across multiple premises or buildings 42 Graphs 4 and 5 focus on office premises. The former compares the % of premises in different size bands as at 1986 and 2010, while the latter is similar but looks at the % of floorspace in each size band. In 2010 nearly a half (49%) of all office premises were smaller than 100 sq.m. This was a significant increase on the 45% figure recorded in 1986, suggesting a growing demand for very small office suites suitable for small scale and fledgling organisations. One manifestation of this has been the growth in serviced office accommodation, where lettings may be as small as a single room. Many recent office developments have been built to be as flexible as possible in terms of sub-division of internal space. 43 Growth in the very smallest office premises appears to be mainly at the expense of those in the next size bracket, between 100 and 300 sq.m., which were proportionately less prevalent in 210 than in 1986. 44 Commercial property agents confirm that a substantial proportion of recent letting activity has been generated by smaller professional organisations rather than the larger financial companies which absorbed large amounts of new space at the height of previous office booms. According to Ryden, 154 of the 167 office deals recorded in the year to October 2012 were 929 sq.m. (10,000 sq.ft.) or smaller, although the larger deals accounted for about 45% of the floorspace take-up. 45 Although they only represent a tiny proportion of office premises (0.4%), the very largest premises with a floorspace of 10,000 sq.m. or larger account for nearly one-fifth of the total floorspace (as at 2010) 46 Graphs 6 to 8 show the cumulative % of offices smaller (or larger) than any selected floorspace: Graph 6 focusses on office premises, Graph 7 on office buildings, and Graph 8 on office occupiers. In each case the green line on the graph relates to cumulative % of units (i.e. premises / buildings / occupiers) while the red line relates to the corresponding cumulative % of floorspace. A selection of key findings are summarised in Table 2. 47 A key point to note is that a relatively modest number of office buildings account for a high proportion of the city’s office space: although 88% of buildings each offer less than 1,000 sq.m. of office accommodation, the 333 buildings that are larger than 1,000 sq.m. provide 71% of the total floorspace. A listing of these is set out in Appendix 1 at the end of this report. 48 The distribution in relation to occupiers is also skewed: 94% of organisations or businesses in the city take up office accommodation extending to less than 1,000 sq.m.; but the 207 organisations which occupy more than this account for nearly two-thirds (66%) of the total occupied floorspace (n.b. this excludes vacant floorspace). Appendix 2 provides a listing of these large office space users. 49 At the very top end of the scale, the analysis shows that a few key occupiers can exert significant impact on the Edinburgh office market, with 36% of the space occupied by just 16 large private and public sector organisations. As recent events have demonstrated, this means that the economic and political fortunes of a few organisations are vitally important to understanding the mechanics of the local property market. Graph 4 : Size distribution of office premises 1986 and 2010 : (1) % of premises by size band

55%

50% 48.6%

45% 43.5%

40%

. 35%

30%

25% 23.4% 20.3% % of% total 20%

15% 11.3% 10% 9.9% 6.6% 6.4% 5.4% 5.4% 3.4% 5% 3.7% 2.7% 2.6% 1.1% 0.6% 1.1% 0.4% 0.2% 0.5% 0.2% 0.1% 0.1% 0.0% 0.6% 0.1% 0.3% 0.3% 0.2% 0.1% 0.2% 0.2% 0% 0.1% 0.1%

20,000 sq.m. + 1 to <100 sq.m. <100 to 1 100 - < 200 sq.m. 200 - < 300 sq.m. 300 - < 400 sq.m. 400 - < 500 sq.m. 500 - < 1,000 sq.m. 1,000 - < 2,000 sq.m. 2,000 - < 3,000 sq.m. 3,000 - < 4,000 sq.m. 4,000 - < 5,000 sq.m. 5,000 - < 6,000 sq.m. 6,000 - < 7,000 sq.m. 7,000 - < 8,000 sq.m. 8,000 - < 9,000 sq.m. 9,000 - < 10,000 sq.m. floorspace size bands 10,000 - < 20,000sq.m. % of total premises in each size band, 1986 % of total premises in each size band, 2010 source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Graph 5 : Size distribution of office premises 1986 and 2010 : (2) % of floorspace by size band

20%

18%

16% 15.0%

14% . 12% 11.9%

11.2% 11.1%

10% 9.9% 9.3% 8.4% 8.5% 7.8% 7.6%

% of% total 8% 7.0% 6.7% 6.6% 6.3% 6.3%

6% 5.5% 5.4% 5.2% 5.2% 4.9% 4.8% 4.7% 4.0% 4.1% 3.6% 3.5%

4% 3.3% 2.7% 2.2% 2.2% 2.2% 2% 1.3% 1.2% 0.7%

0%

20,000 sq.m. + 1 to <100 sq.m. <100 to 1 100 - < 200 sq.m. 200 - < 300 sq.m. 300 - < 400 sq.m. 400 - < 500 sq.m. 500 - < 1,000 sq.m. 1,000 - < 2,000 sq.m. 2,000 - < 3,000 sq.m. 3,000 - < 4,000 sq.m. 4,000 - < 5,000 sq.m. 5,000 - < 6,000 sq.m. 6,000 - < 7,000 sq.m. 7,000 - < 8,000 sq.m. 8,000 - < 9,000 sq.m. 9,000 - < 10,000 sq.m. floorspace size bands 10,000 - < 20,000sq.m. % of total floorspace in each size band, 1986 % of total floorspace in each size band, 2010 source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Graph 6 : Cumulative size distribution of Edinburgh office premises 2010

99.9% 100.0% 98.7% 99.1% 99.3% 99.6% 100% 97.0% 93.7% 99.7% 100.0% 91.6% 98.1% 99.0% 99.3% 99.4% 88.0% 95.0% 90% 92.9% 94.4% 90.0% 91.5% 79.2% 80.4% 80% 84.6% 84.9% 73.7%

69.9% 70% 75.0% 64.2% 72.5% 69.3% 67.7% 60% 51.4% 49.1% 59.0% 50% 39.8% 40% 35.5% 41.5% 29.6% 38.0%

cumulative of % total 30% 32.6% 20.6% 20% 25.6%

10% 0.5% 6.3% 14.1%

0% 0.0% d ...... e d m m m m m m m m m m m m m m m m m m m m m m m r ...... q q q q q q q q q q q q q q q q q q q q q q q o s s s s s s s s s s s s s s c s s s s s s s s s e 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r 0 0 0 0 0 t 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 1 2 3 4 5 6 7 8 9 , , , , , , , , , , , , , , n < < < < < < < < < 1 2 3 4 5 6 7 8 9 0 5 0 5 5 . 1 1 2 2 2 p < < < < < < < < < s < < < < > r o lo F floorspace thresholds

cumulative % of total floorspace cumulative % of total premises

Graph 7 : Cumulative size distribution of Edinburgh office buildings 2010

99.7% 100.0% 98.5% 99.1% 100% 96.5% 98.0% 92.7% 99.4% 100.0% 98.3% 98.6% 95.2% 97.3% 95.0% 90% 86.2% 83.0% 90.3% 87.6% 77.6% 84.5% 80% 76.4% 82.8% 80.9%

68.8% 70% 62.8% 71.8% 63.8% 70.5% 66.8% 60% 53.7% 58.8% 50% 49.8% 38.8% 47.7% 40% 30.1%

cumulative of % total 30% 26.9% 23.3% 18.8% 28.8% 20% 24.9% 21.4% 10.9% 10% 0.9% 15.3% 2.4% 6.4% 0% 0.0% d ...... e d m m m m m m m m m m m m m m m m m m m m m m m r ...... q q q q q q q q q q q q q q q q q q q q q q q o s s s s s s s s s s s s s s c s s s s s s s s s e 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r 0 0 0 0 0 t 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 1 2 3 4 5 6 7 8 9 , , , , , , , , , , , , , , n < < < < < < < < < 1 2 3 4 5 6 7 8 9 0 5 0 5 5 . 1 1 2 2 2 p < < < < < < < < < s < < < < > r o lo F floorspace thresholds

cumulative % of total floorspace cumulative % of total buildings

Graph 8 : Cumulative size distribution of Edinburgh office occupiers 2010 (% of occupied flsp. only)

99.7% 100.0% 98.6% 99.2% 99.3% 99.5% 100% 97.0% 92.8% 99.6% 100.0% 90.7% 98.2% 99.0% 99.2% 99.4% 86.9% 90% 92.1% 93.8% 89.0% 80% 77.0% 83.0%

70% 72.8% 63.7% 66.7% 59.8% 66.6% 68.9% 60% 57.7% 60.8% 52.7% 58.9% 50% 55.7% 44.4% 43.3% 49.2% 40% 32.2% 28.9%

cumulative of % total 30% 34.2% 24.3% 31.1% 26.7% 20% 16.5% 20.7% 10% 0.5% 4.7% 11.3%

0% 0.0% d ...... e d m m m m m m m m m m m m m m m m m m m m m m m r ...... q q q q q q q q q q q q q q q q q q q q q q q o s s s s s s s s s s s s s s c s s s s s s s s s e 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r 0 0 0 0 0 t 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 1 2 3 4 5 6 7 8 9 , , , , , , , , , , , , , , n < < < < < < < < < 1 2 3 4 5 6 7 8 9 0 5 0 5 5 . 1 1 2 2 2 p < < < < < < < < < s < < < < > r o lo F floorspace thresholds

cumulative % of total floorspace cumulative % of total occupiers note : The above graphs show the cumulative % of office premises / office buildings / office occupiers which fall below a range of size thresholds (green lines), and the corresponding cumulative % of total floorspace (red lines)

Table 2 : Summary size distribution for office premises, buildings and occupiers, 2010

premises buildings occupiers

Floorspace thresholds : cumulative % of premises cumulative % cumulative of in premises floorspace % of buildings cumulative % cumulative of in buildings floorspace % of occupiers cumulative % cumulative of floorspace occupied smaller than 100 sq.m. 49.1 % 6.3 % 30.1 % 2.4 % 44.4 % 4.7 % smaller than 500 sq.m. 88.0 % 29.6 % 77.6 % 18.8 % 86.9 % 24.3 % smaller than 1,000 sq.m. 94.4 % 41.5 % 87.6 % 28.8 % 93.8 % 34.2 % larger than 5,000 sq.m. 1.0 % 32.3 % 2.7 % 41.2 % 1.0 % 44.3 % larger than 10,000 sq.m. 0.4 % 19.6 % 0.9 % 23.6 % 0.5 % 36.3 % larger than 20,000 sq.m. 0.1 % 8.5 % 0.3 % 9.7 % 0.3 % 31.1 % source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Vacant office space and vacancy rates 50 The commercial valuation roll records premises which are unoccupied, and this enables the calculation of vacancy rates at the three survey dates (1986, 2004 and 2010). Although this is only a snapshot of three specific dates, the figures suggest a pronounced upward trend, as shown in Graphs 9 and 10. Over 300,000 sq.m. was recorded as vacant in 2010, amounting to 16% of the total office space. This is more than 2½ times the vacancy rate for 1986.

Graph 9 : Amount of vacant office space, 1986, 2004 and 2010

floorspace (sq.m.) 2,500,000

2,000,000 1,930,400 1,868,500

1,500,000

1,184,200 1,000,000

500,000

309,700 203,800 0 72,100 1986 2004 2010 vacant floorspace total floorspace source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Graph 10 : Office vacancy rates (% of floorspace), 1986, 2004 and 2010

floorspace (sq.m.)

18% 16.0% 16%

14%

12% 10.9%

10%

8% 6.1% 6%

4%

2%

0% 1986 2004 2010 source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

51 The economic downturn will almost certainly have contributed to the higher figure for 2010, but other factors may also help to explain the trend; for example a growing amount of space which is seen as outdated and less suitable for modern occupier requirements, particularly as large quantities of new space have come on-stream over the last 25 years. Such space could effectively be regarded as redundant. A later section of this report highlights how there has been a momentum to convert such space to other uses, where it can’t readily be upgraded. However, the vacancy figures suggest that this process may still be far from exhausted. 52 The recorded vacancy rates may not portray the full story, as it is likely that some organisations will continue to occupy space which is not used productively. This may be in the expectation of future growth, or perhaps because current market conditions are not conducive to offloading large amounts of surplus space. Some property owners may be taking stock and evaluating different land use / planning options. 53 Some insight into the type of properties that are vacant can be gleaned by looking at vacancies by listed building status / category (Graphs 11 and 12). This shows that vacancy rates are generally higher in listed properties than in non-listed properties. Nevertheless, 60% of vacant space is to be found within properties that are not listed.

Graph 11 : Office vacancy rates by listed building status / category, 2010 floorspace (sq.m.)

25%

20.5% 19.8% 20%

15.7% 16.0% 15% 14.2%

10%

5%

0% 'A' listed 'B' listed 'C' listed not listed all offices

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Graph 12 : Composition of vacant office space by listed building status, 2010

20.7%

'A' listed

'B' listed

59.9% 17.1% 'C' listed

not listed

2.3%

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

54 Vacancy rates are particularly high in properties which were developed in the 1960s (Graph 13). They are also above average in Victorian / Edwardian properties and in offices dating from the 1980s. Some 23% of all vacant space is in buildings from this period (Graph 14). Georgian and earlier buildings account for 17% of vacancies. However, the large number of developments completed since 1990 also contain a significant reserve of unoccupied space, with 19% of vacancies in buildings dating from 2000-2009 and 16% in 1990s properties. This will contain a mixture of short and long- term vacancies, including some space constructed since the onset of the economic downturn which has never been occupied. Further investigation of such recently constructed vacant space may be warranted to establish to what extent it would be capable of meeting projected future growth in demand, including its suitability in terms of location (e.g. City Centre vs out-of-centre) and specifications. 55 Later sections in this report consider the age profile and listed building status of the office stock in more detail.

Graph 13 : Office vacancy rates by date of construction / age of property, 2010

floorspace (sq.m.)

30% 28.6%

25.8% 25%

20.2% 20%

15.6% 14.7% 15% 13.0% 10.8% 11.0% 10.7% 10%

5%

0% pre-1837 1837 to 1919 to 1960 to 1970 to 1980 to 1990 to 2000 to unknown 1918 1959 1969 1979 1989 1999 2009 date source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Graph 14 : Composition of vacant office space by date of construction / age of property, 2010

unknown pre-1837 date pre-1837 1837 to 1918 6.7% 16.6% 2000-09 1919 to 1959

18.7% 1960 to 1969

1837 - 1918 1970 to 1979

22.8% 1980 to 1989 1990-99

15.5% 1990 to 1999

1980-89 1960-69 2000 to 2009 1970-79 4.1% 7.3% 6.0% 1919 - 1959 unknown date 2.4%

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records 56 Table 3 shows that by far the highest vacancy rate in 2010 occurred at the East End of the City Centre. However, this was inflated by the very large redundant office premises at the former New St. Andrew’s House, previously occupied by the Scottish Government, which have been empty for many years and are scheduled for demolition as part of the comprehensive redevelopment of the ‘St. James Quarter’. Outwith the East End the highest vacancy rates are in the Gorgie / Slateford and Leith / Bonnington / Broughton areas (both 22%), and in the First New Town (20%). Vacancies were close to or slightly above average in South East Edinburgh, Edinburgh Park / South Gyle, and the West End and South Side / Old Town within the City Centre.

Table 3 : Office vacancies by location, 2010 (ref. Map 6)

Location vacant % of all vacancy floorspace vacant rate (sq.m.) space

City Centre : (of which :) 160,900 18.7 % 52.0 % First New Town 45,900 20.1 % 14.8 % West End 20,800 16.2 % 6.7 % East End 34,500 35.2 % 11.2 % Exchange / Fountainbridge / Haymarket 35,100 13.8 % 11.3 % Old Town & South Side 24,700 16.0 % 8.0 %

Leith / Bonnington / Broughton 29,700 22.0 % 9.6 % Second New Town / Canonmills 5,600 5.7 % 1.8 % Dean / Comely Bank 2,900 6.5 % 0.9 % Gorgie / Slateford 14,200 22.2 % 4.6 %

Edinburgh Park / South Gyle 43,700 16.4 % 14.1 % Newbridge / Airport / Gogar 6,300 9.9 % 2.0 % Queensferry / Kirkliston 300 2.8 % 0.1 % Currie / Balerno / Ratho 1,800 10.5 % 0.6 % West Edinburgh (other) 9,900 11.7 % 3.2 %

Leith Waterfront 6,800 11.4 % 2.2 % Granton Waterfront 1,100 7.6 % 0.4 % North Edinburgh (other) 7,500 13.9 % 2.4 % East Edinburgh 4,200 7.8 % 1.3 % South East Edinburgh 1,800 17.1 % 0.6 % South Edinburgh 12,900 13.1 % 4.2 %

EDINBURGH TOTAL 309,700 16.0 % 100.0 %

Note : The areas in this table are shown in map 6. They have been defined purely for analysis purposes, reflecting the distribution of offices within the city, and do not necessarily reflect policy zonings. However, the City Centre corresponds with the City Centre as defined in the draft Edinburgh Local Development Plan. Some other areas, e.g. Leith and Granto Waterfront, S.E. Edinburgh, correspond broadly to strategic development areas in the city.

57 In volume terms, the largest amounts of vacant stock at 2010 were in the First New Town and Edinburgh Park / South Gyle, with more than 40,000 sq.m. in each area. The East End and the Exchange / Fountainbridge / Haymarket area each contained a further 35,000 sq.m. However, some of the vacancies in the latter area will have been space in newly built properties, still awaiting initial letting. As recent occupier interest has been paticularly keen in this area, it is likely that vacancies will have fallen here, particularly as new development as slowed down and the area has reached a mature stage of development. 58 The other area with a significant amount of unused space is Leith / Bonnington / Broughton, with just under 30,000 sq.m.

Business activity of office occupiers 59 The 2010 valuation roll records occupiers of office premises, as well as tenants and owners. The Council has undertaken further research into the nature of these occupiers, in an effort to quantify the types of activity which are the biggest users of office accommodation. Using on-line and other resources, occupiers were coded by their main business or activity, using the 2007 standard industrial classification (sic 2007). A similar analysis had already been undertaken of occupiers in 1986. However, this had been based on an earlier version of the standard industrial classification (sic 1980). Due to the evolution and re-grouping of activities, the two classifications are not fully compatible. But by aggregating to broad groupings and making a small number of assumptions it is possible to compare the occupational composition of the office stock in 1986 and 2010 at a fairly general level. The results of this exercise are summarised in Graphs 15 to 17 below. 60 The graphs highlight how important the financial services sector has been to the demand for office space in Edinburgh. Between the two survey dates financial services office space grew from 207,000 to 475,000 sq.m., and from 19% to 29% of the total occupied space (i.e. excluding vacancies). 61 Business services (e.g. accountancy, legal services, management consultancy) have also been a major source of demand, with space requirements growing from 116,000 to 188,000 sq.m. However, as a proportion of the total stock growth has been more modest, with just a 1% increment from 11% to 12%. 62 In contrast, creative and cultural activities (e.g. media, advertising, architects, software design) have enjoyed one of the fastest growth rates of any sector, but from a smaller base: their floorspace grew from 47,000 to 177,000 sq.m., while they now account for 11% of stock (i.e. nearly as much as business services), compared with just 4% in 1986.

Graph 15 : Total amount of floorspace by main activity of occupier, 1986 and 2010

500,000

450,000

400,000

350,000

300,000

250,000

200,000

150,000 floorspace floorspace (sq.m.) 100,000

50,000

0

s n s s e o n s g t o n e ti a e ti o e n n i i o c ti i c a t c i i v i w ri t a i c v a c t ra v c r t r, tu rv c u c r a i e s c e i d e e ru v a n t t s s e l n s fa l i u a s , s r u n a w i ra m m s e n o rk , c u d e t a c l o m th y n a n o o a i u w m c c rg s c l n i i l e f u a & b i & n b c u t e

e o r p , v o i s s

t p , e a s i h t t i l n re v a a i c t e tr c h , a s

e y l r a a s m i r

p 1986 2010 source : CEC research and analysis of Lothian Valuation Joint Board (LVJB) records

63 Similarly there has been rapid growth in office space for health, social work, education and a wide range of ‘other’ services (e.g. security, cleaning, membership organisations, various support and personal services). Again, though, this has been from a low start point, and in many cases the premises occupied by these activities will not necessarily be classed as offices, so will not be included in this survey (e.g. colleges, hospitals, health centres). Graph 16 : % composition of office floorspace by main activity of occupier, 2010

manufacturing, 2.4% construction, 3.5% primary activities, energy, water, waste, 1.7%

financial services, 29.3% other services, 12.8%

sales, transport & communications, 3.7%

health, social work, education, 5.3%

business services, 11.6%

public administration, 18.7% creative & cultural activities, 10.9%

Graph 17 : % composition of office floorspace by main activity of occupier, 1986

manufacturing, 2.5% construction, 2.2% primary activities, energy, financial services, 18.7% water, waste, 3.7%

other services, 10.4%

business services, 10.5%

sales, transport & communications, 15.2%

creative & cultural activities, 4.2%

health, social work, education, 2.6% public administration, 30.1%

source : CEC research and analysis of Lothian Valuation Joint Board (LVJB) records 64 The amount of office space used for public administration declined in both absolute and relative terms between 1986 and 2010. The floorspace occupied shrunk from 335,000 to 304,000 sq.m., while the share of total office space fell dramatically from 30% to 19%. Despite this, the public sector remains a significant occupier, second only to financial services (Graph 16). 65 There has been significant shrinkage in some other sectors too, notably sales, transport and communications, and primary activities, energy and waste. 66 Offices associated with manufacturing and construction account for a very small proportion of the total, although there appears to have been a small amount of growth since 1986. In the case of construction, much of this is likely to stem from builders and developers who are nominally occupiers of office buildings but who are preparing for major works such as refurbishment, conversion or redevelopment. 67 Maps 8 to 11 show the distribution of office floorspace for the four largest sectors, which between them account for just over 70% of the total floorspace. Financial services are particularly clustered in the City Centre (increasingly in the Exchange / Fountainbridge area) and at Edinburgh Park / South Gyle and Gogar on the western outskirts of the built- up area, within easy reach of the airport (Map 8). There are also smaller nodes at Dundas Street, Orchard Brae, Haymarket and Dalkeith Road, in some cases mainly due to the presence of just one or two major occupiers. 68 Business services are even more highly concentrated in the city centre, with Edinburgh Park and to a much smaller extent Leith being the only other significant clusters (Map 9). 68% of the floorspace in this sector is to be found within the 5 city centre zones shown in Map 6. 69 The creative sector also has a strong presence in the city centre, but with a stronger focus in the ‘traditional’ office areas to the north of Shandwick Place and Princes Street, rather than in the newer developments of the Exchange area (Map 10). There is a further cluster at Edinburgh Park / South Gyle, and also a noteworthy clusters in the area from Leith to Bonnington and Canonmills. 70 Public administration offices are distributed across the city, but with concentrations in a few very large buildings, including some recent developments and others which date back as far as the 1950s or 1960s. There is a bias towards the east end of the city centre, due to the presence of Waverley Court (City of Edinburgh Council) and St. Andrew’s House (Scottish Government). The Scottish Government’s administrative headquarters at Victoria Quay in Leith Docks is also clearly evident in Map 11. Other significant locations include Chesser (CEC), Broomhouse (Scottish Govt.), South Gyle (NHS), Comely Bank (Lothian & Borders Police), Meadowbank (Registers of Scotland) and Corstorphine (Forestry Commission and General Register Office). The City of Edinburgh Council’s new neighbourhood centres have also introduced substantial offices to suburban locations such as Pilton and Craigmillar.

Map 8 : Distribution of financial services office floorspace, 2010, by datazone

Map 9 : Distribution of business and professional services office floorspace, 2010, by datazone Map 10 : Distribution of creative and cultural sector office floorspace, 2010, by datazone

Map 11 : Distribution of public administration office floorspace, 2010, by datazone Listed building status 71 In 1986, over half of Edinburgh’s office space was in buildings which have been statutorily listed for their architectural or historical importance. However, by 2010 this had fallen to just under one-third (Graph 18). 72 Although the proportion has fallen substantially, this has mainly been due to the construction of large amounts of new space over the last 25 years which is not listed. Indeed the total volume of listed office floorspace is marginally higher in 2010 than in 1986. However, this this masks a rise between 1986 and 2004, followed by a loss of about 21,000 sq.m. between 2004 and 2010.

Graph 18 : Composition of Edinburgh’s office space by listed building status / category, 1986 and 2010

.. 1986 2010

16.8% 'A' listed 'A' listed 28.6%

'B' listed 'B' listed 48.3% 13.3%

'C' listed 'C' listed 2.3% 67.5% 19.7% not listed not listed 3.4%

Graph 19 : Amount of office floorspace by listed building status / category, 1986 and 2010

sq. metres floorspace

1,400,000 1,303,200 1,303,200 1,220,400 1,220,400 1,200,000

1,000,000

800,000

600,000 572,500

400,000 338,500 338,500 337,400 337,400 324,300 324,300 266,800 266,800 257,500 257,500 233,300 233,300 200,000 45,400 45,400 43,900 43,900 39,900 39,900 0 'A' listed 'B' listed 'C' listed not listed 1986 2004 2010

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records 73 Listed buildings project an image of quality, distinctiveness and heritage which appeals to some occupiers. Many listed buildings are also centrally located. However, they are not always suited to modern operational requirements – for example the growing preference for large, flexible floorplates, lower ceiling heights, space for cabling and other services, accessibility for people with disabilities, reduced energy and water consumption etc. Some listed properties have been successfully refurbished or even completely remodelled for office use within a preserved shell, but the costs of such works need to be weighed against the likely rental stream from prospective tenants. In some prime locations developers may consider it worthwhile to invest in major modernisation; but in other cases the only viable option may be to convert to alternative, non-office uses. A later section in this report considers the extent to which offices have been lost to other uses. 74 It should be noted that listed office buildings are not confined to Georgian, Victorian or other ‘period’ properties. Indeed some post-1945 office buildings have been listed for their architectural or historic significance – for example the BAE Avionics offices at Crewe Toll, nos. 6-7 and 9-10 St. Andrew Square, and Scottish Widows’ heaxagonal ‘prism’ office complex at Dalkeith Road.

Age of property / date of construction 75 It is helpful to have an understanding of the age profile of the city’s office stock as this gives a broad idea of how much accommodation is modern, purpose-built space, and how much is in premises which may be less suitable for modern working requirements. However, this can only provide a general context, since many older properties are perfectly adequate for the needs of some occupiers, and may fulfil an important market niche, for example by making less highly specified space available at lower rents. 76 Furthermore, some older properties may have been upgraded, in some cases providing a standard of accommodation which comes close to matching recent new build, but again perhaps offering advantageous rents. A large number of office properties in Edinburgh have been refurbished, but to varying standards and some more recently than others. Where known, such refurbishments have been recorded against the LVJB commercial valuation roll records. Unfortunately, however, this information is not comprehensive enough to permit any systematic analysis based on date / scale of refurbishment. This may be something which could be addressed through future work in conjunction with local property agents. 77 Graph 20 analyses the age of the office stock based purely on the date of original construction, i.e. not allowing for refurbishments. The year of construction was researched using planning records, listed building records and various other sources, focussing particularly on larger buildings, to the point where a building age was identified for 90% of the total floorspace.

Graph 20 : Age profile of Edinburgh’s office stock, 2010 (date of original construction)

unknown date 10.0% pre-1837 18.1%

2000 to 2009 19.2% 1837 to 1918 14.1%

1919 to 1949 2.1%

1990 to 1999 1970 to 1979 19.1% 8.7% 1960 to 1969 1950 to 1959 4.1% 1.5% 1980 to 1989 3.2%

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records 78 The graph shows that about 32% of the city’s office accommodation is in buildings which are more than 100 years old. Only a very small proportion – about 8% - is between 50 and 100 years old. Over 50% has been built since 1970, leaving 10% of unknown age. In fact at least 38% of the total dates from 1990 or later – a consequence of the major development boom in the 1990s and early years of the new millennium which saw the rapid growth of the new office areas at the Exchange / Fountainbridge and Edinburgh Park / South Gyle (described earlier in this report).

Graph 21 : Office floorspace by era of construction

sq. metres floorspace 500,000

450,000

400,000 368,300 370,000 349,000 350,000

300,000 272,700

250,000

200,000 192,400 168,100

150,000

100,000 78,400 61,900 39,800 50,000 29,800

0

n 7 8 9 9 9 9 9 9 9 3 1 4 5 6 7 8 9 0 w 8 9 9 9 9 9 9 9 0 o 1 1 1 1 1 1 1 2 n -1 k to to to to to to to to n re u p 7 9 0 0 0 0 0 0 3 1 5 6 7 8 9 0 8 9 9 9 9 9 9 0 1 1 1 1 1 1 1 2

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

Graph 21 : Office floorspace by year of construction (post 1960 detail)

sq. metres floorspace 100,000

90,000

80,000 75,115

70,000 68,174 61,465 60,955 60,000 55,478 54,635 52,989 52,069 50,000 45,433 39,112 38,271

40,000 37,789 37,150 33,820 33,788 29,622

30,000 27,902 27,230 26,768 23,326

20,000 18,457 16,455 14,938 12,929 11,271

10,000 9,172 6,998 6,856 6,769 6,779 6,457 6,323 5,770 4,662 4,137 3,708 3,568 3,160 2,967 2,925 2,429 2,413 2,208 1,443 1,335 681 667 184 184 0 0 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

79 The massive scale of new development in the 1990s and 2000s is evident in Graphs 21 and 22, the latter showing year-by-year detail for the post 1960 period. Some 370,000 sq.m. of new office space (excluding refurbishments) was created in each of these decades. Allowing for ‘unknowns’ and the fact that some recent stock has already been lost to other uses (as described in the next section), the volume of new development may well have been even greater than this. 80 Graph 21 also shows that a significant amount of floorspace – nearly 250,000 sq.m. – remains from the 1960s and 1970s. A large number of buildings of this age have already been redeveloped or converted for other uses as they have become less suitable for office use, often due to design limitations or location. Very few of such buildings are protected by listing. It therefore seems that there could be further pressure for replacement of this stock as it becomes redundant in future years.

Losses from office stock 81 As indicated earlier in this report, additions to the office stock have been partly offset by losses, through a mixture of redevelopment and conversions to other uses. Graph 22 compares these ‘inflows’ and ‘outflows’ on an annual basis since 2000, and shows that since the onset of the global financial crisis and economic downturn (2008), losses have tended to exceed additions. This is a very different pattern from pre-recession years.

Graph 22 : Annual additions to and losses from stock, 2000 - 2012

sq. metres floorspace

110,000 0

100,000 0 92,70 90,20

90,000 0 80,30

80,000 0

70,000 69,10 0 0

60,000 57,90 56,40 0

50,000 0 44,10 0

40,000 39,50 0 35,40 0 0 0 0 0 0 28,90 30,000 0 26,50 0 23,70 23,60 23,40 22,80 0 21,80 0 0 0 20,30

20,000 17,60 13,80 13,70 0 12,70 12,50 0 0 10,000 0 6,30 5,60 4,80 3,70 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

additions to stock (sq.m.) losses from stock (sq.m.)

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

82 It should be noted that the recording of losses is not as comprehensive as that for the development of new offices, especially in the earlier years. The figures in this section are based on a range of data sources, including planning records, site visits and on-line research. However, it is suspected that the scale of recorded losses may be an under­ estimate, particularly in relation to smaller premises. Hence the figures reported in this section are somewhat lower than the estimated total annual losses of 29,600 (for 2004­ 2010) suggested earlier in this report (para. 14). 83 The precise date when a loss occurs is also open to a degree of interpretation. For example a considerable time period may elapse between when a property falls vacant, when consent is secured for redevelopment or alternative use, when demolition or refurbishment occurs, and when the new user occupies the site. Hence the figures in Graph 22 should be regarded as indicative only. 84 Appendix 3 lists some of the larger buildings where office use has been discontinued between 2000 and 2011. It also identifies the nature of the loss (redevelopment or conversion), the new uses which have replaced offices, the approximate year of loss, and the date when the building was originally constructed. This identifies 41 buildings with more than 1,000 sq.m. gross floorspace, the largest of which was the 15,000 sq.m. former offices of NHS Scotland’s Common Services Agency at Trinity Road South (Goldenacre). 85 Graphs 23 and 24 show the date of original construction for offices which were lost between 2000 and 2011, where known. The former looks at total volumes of floorspace, the latter at % composition. Graph 23 also differentiates between properties which have been completely redeveloped and those where a change of use has occurred within the same building, with at least the retention of the original shell. The graph shows that over 70,000 sq.m. of Georgian and older properties were lost from office use between 2000 and 2011 – virtually all through conversion to alternative uses. However, there were also very substantial losses of 1960s and 1970s office buildings during this period – amounting to over 30,000 sq.m. and 60,000 sq.m. respectively. In the case of these properties, which were typically only about 35-40 years old, some two-thirds of the space was completely redeveloped rather than refurbished and re-used. 86 It is also evident that pressure has been growing to redevelop or convert some buildings which were constructed even more recently, dating from the 1990s, or even the 2000s. In total, 52% of the office space redeveloped or converted to other uses was built since 1960. The vast majority of this is likely to have been purpose-built for office use. 87 As occupier requirements have evolved, many state-of-the-art office premises built just a few decades ago may have to be substantially modernised if they are to remain in office use, or else relinquished to other uses. Location, layout and construction method are likely to weigh significantly in the decision whether or not refurbishment is a viable option. As described in the previous section of this report, there remains a substantial volume of office space which dates from the 1960s to 1980s, and as this becomes redundant it is likely to need replacing by buildings more suited to contemporary requirements.

Graph 23 : Original era of construction of properties lost from office stock, 2000 - 2011

90,000 sq. metres floorspace 80,000 71,400

70,000 200 60,700 60,000

50,000

37,800 40,000 71,200 31,100 30,000 22,900 0 16,900 20,000 24,500

10,000 22,900 22,900 16,900 5,300 220 0 6,600 5,300 0 2200 0 r 8 9 9 9 9 r e e li 1 5 6 7 8 t r 9 9 9 9 9 la a 1 1 1 1 1 e r o o o o o r t t t t t o

o 0 8 9 0 0 0 9 7 3 1 6 7 8 3 8 9 9 9 9 9 8 1 1 1 1 1 1 1 Date of original construction

change of use / conversion / refurbishment full demolition & redevelopment

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

88 Housing was the replacement use for 48% of the office space lost between 2000 and 2011, including conversions (mainly of period buildings in the City Centre) and wholesale redevelopment of former office buildings. The next biggest beneficiary was the hotel / visitor accommodation sector, which accounted for 24% of the total (Graph 25). This has been the fastest growing commercial property sector in the city in recent years, buoyed up by a very successful all-year-round visitor economy and high hotel occupancy rates. Losses to other sectors have been relatively modest by comparison, with retail and mixed use each taking over about 6% of former office accommodation. A significant number of office premises in some parts of the City Centre have been converted to educational use (e.g. language schools, music tuition) and there has also been some conversion to student accommodation. Graph 24 : Original era of construction of properties lost from office stock, 2000 - 2011 (% composition)

unknown date 5.2% 1990 or later 2.4%

1980 to 1989 7.7%

1837 or earlier 32.4%

1970 to 1979 27.6%

1838 to 1918 10.4%

1960 to 1969 14.1%

1919 to 1959 0.1% Graph 25 : New use(s) of properties lost from office stock, 2000 - 2011 (% composition)

café / restaurant / take-away food 1.3% student health other / accomm'n 1.7% unknown uses 2.8% 1.4%

education 4.2%

office 4.8%

mixed use residential 6.1% (excluding student & visitor retail accomm.) 6.4% 47.6%

hotel / visitor accomm'n 23.7%

source : CEC analysis of Lothian Valuation Joint Board (LVJB) records

89 It may be observed in Graph 25 that there has also been some conversion to new office uses (ca 5% of the total). This goes beyond mere refurbishment of existing offices, and denotes where offices have been completely redeveloped and replaced by a new office building. In such cases, the loss from office stock is just for a short period pending completion of the new development. This category also includes several instances where ‘class 4’ general offices have been converted to ‘class 2’ offices which provide professional and financial services to visiting members of the public.

APPENDIX 1

LISTING OF LARGER OFFICE BUILDINGS 2010

EDINBURGH OFFICE BUILDINGS WITH MORE THAN 1,000 sq.m. GROSS FLOORSPACE (2010)

OFFICE BUILDING MAIN OCCUPIER / SELECTED OCCUPIERS (2010)

Floorspace > 20,000 sq.m.

RBS Global HQ Gogar, 175-179 Glasgow Road Royal Bank of Scotland plc Drummond House, 1 Redheughs Avenue Royal Bank of Scotland plc Victoria Quay Scottish Government Standard Life House, 30 Lothian Road Standard Life 69 Morrison Street Scottish Widows 1-3 Lochside Crescent Aegon UK plc Argyle House, 3 Lady Lawson Street Secretary of State (Dept. of Environment)

Floorspace > 10,000 to 20,000 sq.m.

Waverley Gate, 2 Waterloo Place vacant / Microsoft 34 Fettes Row Direct Line Insurance plc Exchange Crescent, 1-7 Conference Square Standard Life / Shepherd & Wedderburn LLP / Jones Lang LaSalle etc. Saughton House, 12-16 Broomhouse Drive Scottish Government 15 Dalkeith Road Scottish Widows Tweed House / Ettrick House / Teviot House, 35-41 South Gyle Crescent Bank of Scotland Waverley Court, 4 East Market Street City of Edinburgh Council Saltire Court, 20 Castle Terrace Martin Currie / KPMG / Deloitte LLP / Dundas & Wilson etc. St. Andrew's House, 2-6 Regent Road Scottish Government 1 Calton Square Baillie Gifford / CIB Properties Ltd. / Rockstar North Gyle Square, 1 South Gyle Crescent NHS Scotland Edinburgh City Chambers, 253 High Street City of Edinburgh Council Chesser House, 500 Gorgie Road City of Edinburgh Council Exchange Tower / Caledonian Exchange, 19 Canning Street Mott McDonald Ltd. / Melrose Resources plc / Lindsays / HBJ Gately Wareing etc. 1 Crewe Road North Selex Sensors and Airborne Systems Ltd. Meadowbank House, 153 London Road Registers of Scotland Executive Agency Exchange Place 1, 1 Semple Street vacant / Hymans Robertson LLP Q2 - 1 Quartermile Square, 15 Lauriston Place Gladedale Ventures Ltd. / Maclay Murray & Spens / Norwich Property Trust Ltd. / vacant

Floorspace > 7,500 to 10,000 sq.m.

Dundas House, 20 Brandon St. Standard Life Orchard Brae House, 30 Queensferry Road Orchard Brae House LLP / Bank of Scotland / Sopra Group / QAS Systems Ltd. / vacant etc. Telephone House, 357 Gorgie Road vacant 525 Ferry Road World Markets Co. Ltd. Alexander Graham Bell House, 1 Lochside View BT plc / vacant Citymark, 150 Fountainbridge Bank of Scotland Lothian & Borders Police HQ, 5 Fettes Avenue Lothian & Borders Police Board 6 South Gyle Crescent vacant St. Margaret's House, 151 London Road The Arts Complex Ltd. / ESU (Scotland) Finance House, 10 Orchard Brae Lloyds TSB Scotland plc 1 George Street Standard Life 21 South Gyle Crescent Royal Mail Group plc 50 Lothian Road Clydesdale Bank plc / Cairn Energy / Burness LLP / Brodies LLP Pentland House, 47 Robb's Loan Scottish Government 1 Waterfront Avenue Scottish Gas Silvan House, 231 Corstorphine Road Forestry Commission Keith House, 2 Redheughs Rigg Sainsburys Bank / Computacentre / Southern Cross Healthcare / Morse Group Ltd. / vacant 3 Lochside Avenue Aegon UK plc Erskine House, 68-73 Queen Street Pricewaterhouse Coopers / Registers of Scotland / Capita Business Systems / Morisons LLP etc.

Floorspace > 5,000 to 7,500 sq.m.

Barclay House, 108 Holyrood Road The Scotsman Publications Ltd. 3-4 Broadway Park Scottish & Newcastle UK Ltd. Princes Exchange, 1 Earl Grey Street Turcan Connell / Bank of Scotland / McGrigors LLP New Uberior House, 11 Earl Grey Street Bank of Scotland 1-2 Broadway Park vacant 5 Bankhead Avenue HMRC (Her Majesty's Revenues & Customs) Edinburgh Airport Large no. of occupiers including airlines, ground handling companies, HMRC, UK Border Agency, police 40-50 South Gyle Crescent Royal Bank of Scotland plc Convention of Scottish Local Authorities (COSLA) / HBOS / Network Rail Infrastructure Ltd. / Amnesty Rosebery House, 9 Haymarket Terrace International etc. Helix House, 140 Crewe Road South vacant Lochrin Square no. 1, 92 Fountainbridge Bank of Scotland 7 Lochside View Applecross Properties Ltd. / Business Stream / JP Morgan / vacant Edinburgh Quay no. 1, 133 Fountainbridge Tods Murray / Saffery Champness / DTZ / Knight Frank etc. Q6 - Quartermile Two, 2 Lister Square Morton Fraser LLP / Gladedale Ventures Ltd. / vacant 60 Morrison Street Scottish Widows Ocean Point 1, 94 Ocean Drive Visit Scotland / Energy Saving Trust / RPS Planning & Develt. / Seven Investment Management Ltd. etc. Exchange Place 2, 2 Semple Street Wood MacKenzie / vacant 10 George Street Ernst & Young / The Scottish Media Group / Dunedin Capital Partners Ltd. / Fidelity International / vacant 4/5 Lochside View Convergys Emea Ltd. / Oracle Corporation UK Ltd. / WSP Buildings Ltd. Bonnington Bond, 2 Anderson Place Toshiba Medical Visualization Systems / Emerson Network Power / Scottish Natural Heritage / vacant 57 Craiglockhart Avenue vacant 3 Morrison Street Franklin Templeton Global Investors Ltd. / vacant Dundas House, 35-36 St. Andrew Square Royal Bank of Scotland plc 8 Lochside Avenue Intelligent Finance 40 Torphichen Street Blackrock International Ltd. / Aon Ltd. / EP Fund / vacant 2 Festival Square Bank of New York, Mellon Ltd. / Anglo Irish Bank Corporation Ltd. / Eric Young & Co. etc. 1 Thistle Street Royal London Mutual Insurance Society Ltd. Edinburgh Quay no. 2, 139 Fountainbridge Baker Tilly / Pinsent Masons / Companies House / Barclays plc / vacant Henry Duncan House, 118-124 George Street Lloyds TSB Scotland plc

Floorspace > 2,500 to 5,000 sq.m.

Calton House, 5 Redheughs Rigg Scottish Prison Service Longmore House, 12 Salisbury Place Historic Scotland 18-19 Market Street vacant 160 Dundee Street Jacobs UK Ltd. / Tenon Ltd. / Sinclair Knight Merz (Europe) Ltd. etc. Elgin House, 20 Haymarket Yards HMRC (Her Majesty's Revenues & Customs) Interpoint, 22 Haymarket Yards Tesco Personal Finance plc 2 Lochside View Miller Lochside View Ltd. / vacant Ladywell House, 10 Ladywell Road General Register Office for Scotland 30 Westfield Road Wolfson Microelectronics plc 117-123 George Street Church of Scotland General Trustees 14 Links Place ESRI (UK) Ltd. / Marie Curie Cancer Care / Postcode Lottery Ltd. etc. Gemini Building, 24-25 St. Andrew Square Royal Bank of Scotland plc Holyrood Park House, 106 Holyrood Road Royal Pharmaceutical Society / unknown / vacant 57 Henderson Row The Scottish Life Assurance Company 41-42 St. Andrew Square vacant 80 George St. F & C Asset Management plc / Semple Fraser / Michael page International etc. 15 Links Place MORI / Marketing Databasics / Charteris plc / vacant etc. Citypoint, 65 Haymarket Terrace Bank of Scotland / Analog Devices Ltd. / Tie Ltd. / vacant 40 Princes Street Aberdeen Asset Management plc / Brewin Dolphin Ltd. / Davis Langdon / Reuters etc. Meldrum House, 15 Drumsheugh Gardens HMRC (Her Majesty's Revenues & Customs) The Stamp Office, 10-14 Waterloo Place BNP Paribas / Repower / Chiltern International Ltd. / Scottish Legal Complaints Commission etc. 38-44 Drumsheugh Gardens Scottish Legal Aid Board / The Chartered Institute of Bankers In Scotland 1-2 Lochside Way HSBC Bank plc Hillwood House and Rosewell House, 2 Harvest Drive Scottish Midland Co-op Society Ltd. / Dietchef / vacant 4/5 Lochside Avenue Agilent Technology UK Ltd. / vacant 91 Haymarket Terrace Scottish Government 2 Lochside Avenue Menzies Distribution Ltd. Excel House, 30 Semple Street Bank of Scotland / MacRoberts / Aegon UK plc 5 Lochside Way Diageo 6 Lochside Avenue vacant Nevis House and Ness House, 11/12 Lochside Place HSBC Bank plc Vantage Point, 3 Cultins Road Adobe Systems Europe Ltd. / Edinburgh Leisure / vacant 4 North St. Andrew Street vacant 1 Rutland Court Anderson Strathern LLP Donaldson House, 97 Haymarket Terrace Scottish Ministers / Mazars LLP / Evolution Group Services Ltd. Haymarket House, 7-8 Clifton Terrace vacant 28-52 West Register Street vacant 74-77 Queen Street Wood MacKenzie 44 York Place HMRC (Her Majesty's Revenues & Customs) / Ingeus / Van Ameyde etc. Calder House, Pentland Gait Office Park, 599 Calder Road Sykes Global Services Ltd. 1-5 Atholl Crescent Gillespie MacAndrew WS / Grant Thornton / Legal & General 1-7 Baileyfield Crescent Standard Life Causewayside House, 154 Causewayside University of Edinburgh / Digby Brown LLP / Data Connection Ltd. Etc. 12 Blenheim Place The Bank of New York, Mellon Ltd. Cornerstone, 60 South Gyle Crescent vacant Elliot House, 8 Hillside Crescent NHS Scotland / vacant 498 Gorgie Road City of Edinburgh Council / United Utilities John Sinclair House, 16 Bernard Terrace Royal Commission on the Ancient & Historical Monuments of Scotland Spectrum House, 2 Powderhall Road Grontmij Services Ltd. / Citizen Advice Scotland / HSBC Bank plc Inchcolm House, 11-11A West Shore Road Scotland Gas Networks / vacant Clarendon House, 114-116 George Street HMRC (Her Majesty's Revenues & Customs) Silverfield, 24 Tennant Street vacant Charles Stewart House, 9-16 Chambers Street University of Edinburgh 101 McDonald Road Capital Copiers (Edinburgh) Ltd. t/a Capital Solutions Stevenson House, 555 Gorgie Road vacant Wallace House, 1 Lochside Avenue Fujitsu / Logica / DVLA 14-17 Atholl Crescent Brodies LLP Lochrin Square no.2, 96 Fountainbridge Biggart Baillie LLP / vacant / Co-operative Bank plc 600 Gorgie Road Capital Bank plc 7 Castle Street King Sturge LLP / MBM Commercial LLP / CB Richard Ellis etc. 7 Lochside Avenue Steria Ltd. / Computershare / Astrazenica 8 Bankhead Crossway North Napier University / Cheque Centres Properties Ltd. Deaconess House, 142-148 Pleasance NHS Lothian Fusion House, 73 Logie Green Road vacant 3 Lochside View J.P. Morgan Chase Bank N.A. Apex House, 99 Haymarket Terrace Scottish Enterprise 57 Albion Road Albion Trust Management Ltd. 5 Cultins Road vacant 81 George Street Brewin Dolphin Ltd. / Intergen (UK) Ltd. / vacant Robert Stevenson House, 1-3 Baxter's Place vacant / Unite Integrated Solution Conference House, 152 Morrison Street Regus UK Ltd. / EICC Ltd. / $ Sight Financial Software Ltd. etc. CA House, 21 Haymarket Yards Institute of Chartered Accountants of Scotland 4 Redheughs Rigg Large no. of occupiers incl. Blyth & Blyth / MWB (Business Exchange) / Tesco Personal Finance plc etc. MWB Business Exchange, 9-10 St. Andrew Square Large no. of occupiers including MWB (Business Exchange) plc / Coalescence / Aquamarine Power etc. 26-31 Charlotte Square National Trust for Scotland 127-129 George Street vacant 28 St. Andrew Square vacant Caledonia House, 1 Redheughs Rigg Sportscotland and governing bodies of various sports in Scotland Buchan House, 21-22 St. Andrew Square IBM United Kingdom Ltd. Hobart House, 80 Hanover Street Mercer Ltd. / Towry Law / Aridhia Informatics / Sumerian Europe Ltd. Etc. 37-38 St. Andrew Square Bank of Scotland Atlantic House, 38 Gardner's Crescent vacant / Crown House Technologies Ltd. / Globespan Group plc / A Priori Designs Ltd. 8 West Pilton Gardens City of Edinburgh Council The Blyth Building, 6 Redheughs Rigg Amey L G Ltd. / vacant Exchange Place 3, 3 Semple Street Scott - Moncrieff / vacant 66 Rose Street NHS Scotland / vacant / QPS Group plc / VF Services (UK) Ltd. 40 Captain's Road City of Edinburgh Council 11 Bank Street Bank of Scotland Dean House Balfour Beatty Construction Ltd. Regus Business Centre, 10 Lochside Place Large no. of occupiers including Regus UK Ltd. / CSC Computer Sciences Ltd. / Symantec UK etc.

Floorspace > 1,000 to 2,500 sq.m.

Lyndean House, 199 Commercial Street Benefits Agency Belford House Health & Safety Executive Osborne House, 1 Osborne Terrace Audit Scotland / National Air Traffic Services / Turner & Townsend etc. 19 St. Andrew Square vacant 25 Chambers Street Crown Office Prosecution Service 154 McDonald Road vacant 95 Riccarton Mains Road Scottish Environment Protection Agency 95 Haymarket Terrace Cyril Sweett / Scottish Ministers / E C Harris etc. Regus Business Centre / Abbey House, 83 Princes Street Large no. of occupants incl. Abbey Business Centres Ltd. / Logica / Scottish Conservative Party etc. 52-52A Annandale Street Standard Life Gyleview House, 3 Redheughs Rigg Student Awards Agency Scotland Norseman House, 2 Ferrymuir NHS Scotland Anderson House, 1 Breadalbane Street NHS Scotland / Coda Octopus Products Ltd. / Orchard & Shipman Pentad 1, 17A South Gyle Crescent Lothian Valuation Joint Board 8-10 New Mart Road Dunedin Canmore Housing Association Ltd. Riverside House, 502 Gorgie Road Adobe Systems Europe Ltd. / Lloyds TSB Foundation for Scotland / Cameron Waugh Associates / vacant 24-28 Torphichen Street Department for Work & Pensions / vacant 125 Princes Street Aspects Software Ltd. / Norwich Union Life and Pensions Ltd. / BDG McColl (Scotland) Ltd. etc. 30-31 Queen Street vacant 11-15 Thistle Street Infrastructure Managers Ltd. / NSPCC / vacant 8-13 Queen Street Royal College of Physicians of Edinburgh Dunedin House, 25 Ravelston Terrace Royal National Institute for the Blind (RNIB) / Royal Society for the Protection of Birds (RSPB) / Aecom 1 Tanfield Aecom / Cerep Investments Ratho Park, 88 Glasgow Road ETDE Contracting Ltd. / Marine Harvest (Scotland) Ltd. / Multiple Sclerosis Society Scotland etc. 5 Ratho Park vacant 84 George Street Northern Lighthouse Board 76-78 Lauriston Place Lothian & Borders Fire Brigade The Rutland Building, 29B Rutland Square DLA Piper LLP Sutherland House, 108-114 Dundas Street FNZ (UK) Ltd. / Incentive Leisure Group (UK) / Capita McLarens Ltd. etc. 86 Commercial Quay TPS Consult Ltd. / vacant / PSCA International Sugar Bond House, 3 Breadalbane Street vacant / Chase Search and Selection Ltd. / Bright 3D 14-17 Charlotte Square Dickson Minto WS Craigmillar Social Work Centre, 173 Duddingston Park South City of Edinburgh Council The Glasshouse, 95 McDonald Road Hanover (Scotland) Housing Association Ltd. 21 Newbridge Industrial Estate vacant / Rok Building Ltd. / Alexandra plc / Marken Fleming House, 28-36 Kinnaird Park Phoenix House, 273-277 Portobello High Street Trillium Prime Property 54-66 Frederick Street Balfour & Manson LLP 3 Flassches Yard Lothian & Borders Police Board / vacant 9-11 Drumsheugh Gardens The Open University 33 Pinkhill ST Microelectronics (R & D) Ltd. Prospect House, 5-9 Thistle Street Vebnet (Holdings) Ltd. / Osprey Holidays Ltd. / Computer Futures Solutions / Thomson Gray P’ship etc. Midlothian County Buildings, 65 George IV Bridge City of Edinburgh Council / Scottish Government 39 George Street Colliers CRE / WYG Consulting / Medical Protection Society Ltd. / Stockland Developments Ltd. etc. 126-128 George Street Tribunal Offices Multrees Walk vacant / Coal Pension Properties Ltd. 4 Marine Esplanade City of Edinburgh Council / vacant 5 Mid New Cultins Cala Management Ltd. / Ford Motor Company Ltd. 1 Cockburn Street City of Edinburgh Council Forsyth Business Centre, 93 George Street Large no. of occupants including Forsyth Business Centres plc / Rensburg Sheppards / Rapid Mobile etc. 1 North St. Andrew Street Lane vacant / Bowleven 24 Broughton Street Incorporation of Goldsmiths / Spirit Media Scotland / George Street Research Ltd. / vacant Hayweight House, 23 Lauriston Street vacant 10 Bell's Brae RMJM Scotland Ltd. Lochside House, 3 Lochside Way Large no. of occupants including Citibase / Tesco Personal Finance plc / Ordnance Survey etc. Albany House, 58 Albany Street Simpson & Marwick BUPA House, 116 Dundas Street Tangible Communications Ltd. / JAC Travel / Aegon UK plc / Network Research Capital House, 12-13 St. Andrew Square Royal Bank of Scotland plc / Elan Computing Ltd. / Spring Technology Staffing Services Ltd. / vacant etc. Beechmount Beechmount Ltd. 25-27 Drumsheugh Gardens The Law Society of Scotland 96 Commercial Quay Pilgrim Systems plc / Cisco Systems / vacant 101 George Street Blackwell Publishing / Lambert Smith Hampton Ltd. / CMS Cameron McKenna LLP / Heath Lambert etc. 10 Logie Mill Petroleum Experts Ltd. Craigievar House, 77 Craigmount Brae MWH UK. Ltd. / Margaret Blackwood Housing Association / vacant 4 Queen Anne Drive Scottish & Southern Energy (SSE Services plc) 1 Roddinglaw Farm, Gogarbank Mitie / SLR Consulting Ltd. / vacant 16 South St. Andrew Street Barclays Bank plc / Halifax Equitable Ltd. / Abbey National / Social Investment Scotland / vacant The Tun, 4 Jackson's Entry British Council Scotl. / General Medical Council / Scottish Enterprise / European Parliament Office / BBC 23 St. Andrew Square First State Investment Services (UK) Ltd. / Merrill Lynch 17 Corstorphine Road D.M. Hall LLP / Progressive Partnership / Hometech Integration Ltd. / Leonard Cheshire etc. Verity House, 19 Haymarket Yards vacant Capital House, 41 Bankhead Crossway South BSS Scotland Ltd. 20-26 Bernard Terrace vacant 9-11 Infirmary Street University Court of the University of Edinburgh Sirrius House, 1 Flassches Yard Onyx Group / vacant / Senior Wright Ltd. 31A Bath Road Siemens Transmission and Distribution 2 New Mart Road Link Group / Action Scaffolding Contracts Ltd. / Mary R. McQueen & Co. / vacant Springwell House, 1 Gorgie Road City of Edinburgh Council 111 Riccarton Mains Road Institute of Occupational Medicine Citibase, 1-3 St. Colme Street Large number of occupiers including Citibase plc Wellgate House, 194 Cowgate Castle Rock Edinvar Housing Assoc. / Chamber for Commerce / Scottish Council for Single Homeless etc. 37 Bankhead Crossway South BT plc 20 High Riggs Department For Work & Pensions (Jobcentre Plus) Quayside House, 127 Fountainbridge Financial Services Authority / GVA Grimley Miller House, 18 George Street Audit Scotland / Change Resource Group The Rural Centre, West Mains of Ingliston NFU Scotland / Quality Meat Scotland / Road Haulage Assoc. / Scottish Agric. & Rural Develt. Centre etc. 3 Glenfinlas Street Murray Beith Murray 12 Hope Terrace Medina Sun Ltd. & Kirkbride Investments Ltd. (in administration) Nova House McClure Naismith Murrayburn House, 1 Wester Hailes Centre BA Estates / vacant 61 Dublin Street Chiene & Tait CA 8 South Gyle Crescent Lane RR Donnelley Print & Media Services Ltd. 5 Kirk Loan City of Edinburgh Council Beaverhall House, 27 Beaverhall Road vacant / Chubb Security Personnel / HIV Scotland / Accountancy Assured Ltd. Wardieburn House, 496 Ferry Road Lothian & Borders Police / Vision Consulting Ltd. / MDC Learning Systems Ltd. / The Lane Agency etc. 70 Newhaven Road Large no. of occupants including Scot-Pep / Editions Publishing Ltd. / Foto-Ma Lighting Architects etc. 142 Causewayside Scottish Law Commission Melville House, 18-22 Melville Street St. James's Place Wealth Management Group plc / vacant 6 South Charlotte Street Shelter Scotland / Adam & Company plc / Hogg Robinson (Travel) Ltd. / Badenoch & Clark Ltd. / vacant 11 Lochend Aviagen Ltd. Currie House, Pentland Gait Office Park, 597 Calder Road Sykes Global Services Ltd. / BAM Construction Ltd. Canning Exchange, 4-12 Canning Street Atkins Ltd. 7-8 Chambers Street Lothian & Borders Police Board Craigmillar Social Enterprise & Arts Centre, 11 Harewood Road Places for People Scotland, Care & Support / Forth Sector / Carr Gomm Scotland / NHS Scotland etc. 46-48 Moray Place Educational Institute of Scotland 36 South Gyle Crescent Icon Clinical Research (UK) Ltd. / Capgemini UK plc 11A Ellersly Road Capability Scotland 1-3 Charlotte Square Walter Scott & Partners Ltd. Vantage Point, 24 St. John's Road vacant / National Grid Property Holdings Ltd. 1 Papermill Wynd Hulley & Kirkwood Consulting Engineers Ltd. / Museums Galleries Scotland / Veterinary Solutions Ltd. Amicable House, 71 George Street Nationwide Building Society Clerwood House, 96 Clermiston Road General Teaching Council for Scotland 42 Colinton Road Napier University / vacant Southern Exchange House, 34 Earl Grey Street A4E Scotland Ltd. / Ellemesse Properties (Edinburgh) Ltd. 7 Henderson Place Lane Scottish Life Assurance Co. Norloch House, 36 King's Stables Road EDAW plc / Environmental Resources Scott House, 1 Mid New Cultins Robert McAlpine Ltd. / Civil Aviation Authority / vacant 142-144 Princes Street Royal Bank of Scotland plc Viewforth House, 31-37 The Loan, South Queensferry Sodexo Prestige / vacant 10 Atholl Crescent vacant Sovereign House, 10-12 Young Street vacant 16 Abercromby Place Halcrow Holdings Ltd. 6-7 Drumsheugh Gardens R.A. Pearson 2 South Charlotte Street Rathbones Brothers plc / Punter Southall & Co. Ltd. / Scottish Ministers 74 Commercial Quay vacant / GE Real Estate Ltd. 5 New Mart Place National House Building Council / Homes for Scotland / Fed. of Master Builders / T4 Marketing Ltd. etc. 28-38 Thistle Street National Heritage Memorial Fund / Electoral Commission / Murray & Currie etc. 133 George Street vacant / Bravura Solutions / Ambergreen Marketing Old Royal High School, 5 Regent Road City of Edinburgh Council / Edinburgh University Settlement / vacant 40-42 George Street Reed Personnel Services Ltd. / Bank of Ireland / Meltwater News UK Ltd. / Robert Half International 66 Logie Green Road Earl Haig Fund Scotland Quality Court, 3 Quality Street Home in Scotland Ltd. / Cancer Research UK / Haines Watts CA / British Sky Broadcasting Group plc 38 South Gyle Crescent Chubb Electronic Security Systems Ltd. / Farrer Consulting Ltd. / Rentokil Pest Control 31A-32 Moray Place Drummond Miller LLP London House, 20-22 East London Street Elsevier Ltd. 12 Hillside Crescent RNIB (Scotland) Westcott House, 4 Ferrymuir Amazon Devel’t Centre Scotland / Gallagher Bassett International / Technology Project Services Scotland Heriot House, Pentland Gait Office Park, 595 Calder Road Capital Bank plc Elder House ?, 2 Multrees Walk Dell Corporation / Charles Stanley & Co. Ltd. / Turley Associates / Broadway Malyan 2 Castle Terrace Bank of Scotland 2 Duke Street vacant 34 South Gyle Crescent vacant / Equiniti Ltd. Property Services Forth House, 13-17 Forth Street Radio Forth Ltd. 10 West Mill Road Globespan Group plc 5 Logie Mill Millar & Bryce Ltd. / Christie Owen & Davies plc 18 Charlotte Square vacant / Wright Johnston MacKenzie / Kleinwort Benson Atholl House, 2 Canning Street vacant 19 Rose Street Cooper Cromar / vacant / Bright Purple Resourcing Ltd. 110 Commercial Street vacant 7-11 Melville Street Johnston Carmichael 6 Dock Place Mediacom / Barr Printers Ltd. / vacant 9-10 Westside Plaza City of Edinburgh Council 22-23 Charlotte Square Adam & Company 12-13 Charlotte Square Edinburgh Partners 2 Commercial Street Large number of occupants including Equal Exchange Ltd. / Learning Links / J.S. Parker Ltd. Etc. 1 Hay Avenue Castle Rock Edinvar Housing Association 4 Queen Street vacant / Care and Repair Edinburgh / Leckie & Leckie / Halogen / Asthma UK Scotland 142 Commercial Street Realise Ltd. 46 Shore Shore Design Consultancy Ltd. / Kuoni Travel / Blue Arrow Ltd. / Maritime & Coastguard Agency etc. 50 Frederick Street District Valuer Scotland South East 80 Commercial Quay vacant / Campbell & Arnott / Penna plc CBC House, 24 Canning Street Capital Business Centre Ltd. 25 Greenside Place Blue Planet Investment Advisers Ltd. / Scotland & Northern Ireland Forum for Environmental Research 6 Broughton Street Lane Wallace Whittle Ltd. / Aspects Tools Ltd. / Right Track Scotland Ltd. etc. 6 Cockburn Street vacant Tower Mains, 18 Liberton Brae Camco Advisory Services Ltd. / Indigo Tide Ltd. / Atmos Consulting Ltd. / Eve Networks Ltd.. etc. 18 Logie Mill Sea Fish Industry Authority 4 Crichton's Close Scottish Building Employers Fed. / Assoc. of the British Pharmaceutical Industry / Ledingham Chalmers Claremont House, 130 East Claremont Street City of Edinburgh Council / Alba Life Ltd. 108 Princes Street John Menzies plc / vacant

APPENDIX 2

LISTING OF LARGER OFFICE OCCUPIERS 2010

ORGANISATIONS OCCUPYING MORE THAN 1,000 sq.m. OFFICE FLOORSPACE IN EDINBURGH (2010)

OCCUPIER (2010) BROAD BUSINESS ACTIVITY

Floorspace > 50,000 sq.m.

Royal Bank of Scotland plc banking Scottish Government national government (Scotland) City of Edinburgh Council local government Standard Life finance – investment management Bank of Scotland banking

Floorspace > 10,000 to 50,000 sq.m.

Scottish Widows finance – investment management Aegon UK plc finance – investment management NHS Scotland (National Health Service) national health service HMRC (Her Majesty's Revenues & Customs) national government (UK) - taxation Secretary of State (Department of Environment) national government (UK) Direct Line Insurance plc finance - insurance Lloyds TSB Scotland plc banking Lothian & Borders Police Board emergency service Registers of Scotland Executive Agency national government (Scotland) Selex Sensors and Airborne Systems Ltd. defence HSBC Bank plc banking

Floorspace > 5,000 to 10,000 sq.m.

World Markets Co. Ltd. finance – foreign exchange information BT plc (British Telecom) telecommunications University Court of the University of Edinburgh higher education Baillie Gifford finance – investment management Royal Mail Group plc logistics / postal service Scottish Gas utilities / energy supply The Arts Complex Ltd. art studios The Scotsman Publications Ltd. publishing - newspapers Wood MacKenzie energy consultant Scottish & Newcastle UK Ltd. brewing Church of Scotland General Trustees religion Forestry Commission national government agency (UK) The Bank of New York, Mellon Ltd. finance – investment management Shepherd & Wedderburn LLP solicitors Intelligent Finance banking Royal London Mutual Insurance Society Ltd. finance - insurance Tesco Personal Finance plc banking Historic Scotland national government agency (Scotland) Floorspace > 2,500 to 5,000 sq.m.

NHS Lothian national health service Wolfson Microelectronics plc electronics - semiconductors Scottish Prison Service national government agency (Scotland) Franklin Templeton Global Investors Ltd. finance – investment management Brodies LLP solicitors General Register Office for Scotland national government agency (Scotland) The Scottish Life Assurance Company finance - insurance Sykes Global Services Ltd. customer services technology Capital Bank plc banking Clydesdale Bank plc banking Maclay Murray & Spens solicitors Morton Fraser LLP solicitors Dundas and Wilson C.S. solicitors Menzies Distribution Ltd. logistics Tods Murray solicitors Diageo alcoholic drinks manufacture / distribution Rockstar North video games Anderson Strathern LLP solicitors Scottish Legal Aid Board national government agency (Scotland) Department for Work & Pensions (DWP) national government (UK) Visit Scotland tourism promotion Miller Lochside View Ltd. construction / property development Royal Commission on the Ancient & Historical Monuments of Scotland national government agency (Scotland) Scottish Enterprise national government agency (Scotland) Capital Copiers (Edinburgh) Ltd. t/a Capital Solutions office supplies Turcan Connell solicitors Pricewaterhouse Coopers accountants Cairn Energy plc energy – oil & gas exploration Blackrock International Ltd. finance – investment management J.P. Morgan Chase Bank N.A. finance – investment management Deloitte LLP accountants Scotland Gas Networks utilities / energy supply Albion Trust Management Ltd. charity – property trust Convergys Emea Ltd. management consultants Institute of Chartered Accountants of Scotland professional body Adobe Systems Europe Ltd. information technology National Trust for Scotland heritage preservation – membership organis’n IBM United Kingdom Ltd. information technology - systems The Scottish Ministers national government (Scotland) Audit Scotland national government agency (Scotland) Martin Currie Investment Management Ltd. finance – investment management Agilent Technology UK Ltd. measurement technology Balfour Beatty Construction Ltd. construction Floorspace > 1,000 to 2,500 sq.m.

Benefits Agency Estates Trillium Prime Property national government agency (UK) Health & Safety Executive national government agency (UK) Burness LLP solicitors Crown Office Prosecution Service judicial Scottish Environment Protection Agency (SEPA) national government agency (Scotland) Napier University higher education Orchard Brae House LLP property development Student Awards Agency Scotland national government agency (Scotland) McGrigors LLP solicitors Adam & Company plc banking Aecom engineering consultants Lothian Valuation Joint Board local government agency Dunedin Canmore Housing Association Ltd. housing association Royal College of Physicians of Edinburgh professional body Laura Scott CRS Facilities Mananger property management Northern Lighthouse Board marine safety Scottish Midland Co-op Society Ltd. food retail F & C Asset Management plc finance – investment management Ernst & Young accountants Lothian & Borders Fire Brigade emergency service Gillespie MacAndrew WS solicitors DLA Piper LLP solicitors K.P.M.G. accountants Sainsburys Bank banking Dickson Minto WS solicitors Hanover (Scotland) Housing Association Ltd. housing association Brewin Dolphin Ltd. finance – investment management Trillium Prime Property property management Balfour & Manson LLP solicitors ‘the occupier’ various The Open University higher education ST Microelectronics (R & D) Ltd. electronics HBJ Gateley Wareing (Scotland) LLP solicitors Business Stream utilities – water supply Tribunal Offices national government RMJM Scotland Ltd. architects Simpson & Marwick solicitors Sopra Group Ltd. information technology consultants Beechmount Ltd. serviced offices The Law Society of Scotland professional body Regus UK Ltd. serviced offices Petroleum Experts Ltd. information technology – engineering software Lindsays solicitors SSE Services plc utilities – energy supply Biggart Baillie LLP solicitors BSS Scotland Ltd. direct mail providers Nationwide Building Society banking MacRoberts solicitors Sportscotland national government agency (Scotland) Siemens Transmission and Distribution power transmission Halifax plc banking Convention of Scottish Local Authorities (COSLA) local government agency / representative body Castle Rock Edinvar Housing Association housing association Institute of Occupational Medicine health / medical research Cheque Centres Properties Ltd. finance – short-term loans Department For Work & Pensions (Jobcentre Plus) national government (UK) Scottish Ambulance Service Board emergency service Murray Beith Murray solicitors Medina Sun Ltd. & Kirkbride Investments Ltd. property development McClure Naismith solicitors First State Investment Services (UK) Ltd. finance – investment management Globespan Group plc aviation / travel Steria Ltd. information technology consultants Oracle Corporation UK Ltd. information technology – systems Chiene & Tait CA accountants RR Donnelley Print & Media Services Ltd. printing and digital media Aon Ltd. finance – insurance broker Scott - Moncrieff accountants Capability Scotland charity (health) Scottish Law Commission national government agency (Scotland) Walter Scott & Partners Ltd. finance – investment management Aviagen Ltd. poultry farming ESPC (UK) Ltd. (Edinburgh Solicitors Property Centre) estate agents Atkins Ltd. civil engineers Edinburgh Leisure local government agency (sports & leisure) Toshiba Medical Visualization Systems Europe Ltd. information technology – medical software Faculty Services Ltd. legal support services Grontmij Services Ltd. engineering consultants Educational Institute of Scotland professional body / trade union General Teaching Council for Scotland national government agency (Scotland) Unite Integrated Solution student accommodation provider Jacobs UK Ltd. engineering consultants Scottish Life Assurance Co. finance – insurance Aberdeen Asset Management plc finance – investment management Halcrow Holdings Ltd. engineering consultants Computacentre computer supplies R.A. Pearson finance – investment management HBOS banking Children 1st charity (child welfare) Analog Devices Ltd. information technology – software Morisons LLP solicitors Hymans Robertson LLP finance – pensions consultants Earl Haig Fund Scotland charity (war veterans welfare) Murray Group Management Ltd. holding company Marsh Properties & Services Ltd. finance – insurance brokers Capita Business Services Ltd. human resources consultants Applecross Properties Ltd. property development WSP Buildings Ltd. engineering consultants MORI market research / opinion polling agency Drummond Miller LLP solicitors Melrose Resources plc energy – oil & gas exploration Baker Tilly accountants Elsevier Ltd. publishing Morris & Spottiswood Ltd. construction consultants RNIB (Scotland) (Royal national Institute for the Blind) charity (health) Sodexo Prestige catering Microsoft information technology – software & systems Capital Business Centre Ltd. serviced offices Cala Management Ltd. property development / construction Royal College of Surgeons professional body Axios Systems plc information technology – software CIB Properties Ltd. property development Radio Forth Ltd. radio broadcasting ESU (Scotland) charity (education) Fujitsu Services Ltd. info technology & management consultants Johnston Carmichael accountants Onyx Group information technology – systems Citizen Advice Scotland charity (advice) Concept Systems Ltd. marine technology Bethany Christian Trust charity (homelessness) Adam & Company banking Edinburgh Partners finance – investment management Barratt Homes (East Scotland) Ltd. construction (housing) Realise Ltd. marketing District Valuer Scotland South East local government agency Semple Fraser LLP solicitors Mott McDonald Ltd. engineering consultants DTZ property consultants British Midland Airways aviation Sea Fish Industry Authority national government agency (UK)

APPENDIX 3

LISTING OF MAJOR LOSSES OF OFFICE SPACE 2000 – 2011

LARGER PROPERTIES LOST FROM EDINBURGH’S OFFICE STOCK, 2000 – 2011 DATE OF DATE OF PROPERTY / ADDRESS NEW USE(S) CONSTR. LOSS

Loss of floorspace > 5,000 sq.m.

Trinity Park House, South Trinity Road housing (redevelopment) 1973 2008 Regional Chambers, George IV Bridge hotel, restaurant etc. (redevel’t) 1968 2006 23-25 Waterloo Place hotel (conversion) 1819 2008 West Port House, 102 West Port office (redevelopment) 1974 2007 9 Saint Andrew Square retail, office (conversion) 1962 2000 Hazelbank, 33 Ellersly Road housing (redevelopment) 1984 2011 Croythorn House, 23 Ravelston Terrace housing (conversion) 1971 2006

Loss of floorspace > 2,500 to 5,000 sq.m.

Lauriston House, 80 Lauriston Place hotel (redevelopment) 1961 2000 18-19 Market Street mixed use (conversion) 1861 2010 Evolution House, 78 West Port education (conversion) 2003 2007 12-14 York Place hotel, housing (conversion) 1790 2000 4 Brunswick Street housing (conversion) 1977 2004 2 Robertson Avenue office, housing (redevel’t) 1970 2010 Citadel House, 50-52 East Fettes Avenue housing (redevelopment) 1968 2007 157 Fountainbridge mixed use (redevelopment) 1977 2003 Mulberry House, 16-22 Picardy Place hotel (conversion) 1809 2004 Uberior House, 61 Grassmarket hotel (conversion) 1974 2001 Silverfield, 24B Tennant Street care home, housing etc. (redevt) 1988 2010 9 Haddington Place youth hostel (conversion) 1971 2005 Miller House, 20 South Groathill Avenue retail 1980 2005 Shrubhill House, 7 Shrub Place proposed student accom (redev.) 1973 2007 Edinburgh House, 3-11 North St. Andrew Street bus station, office, retail (redev) 1964 2000 Henderson House, 118-120 Dundas Street housing, retail 1985 2010 Hanover Buildings, 56-84 Rose Street retail etc. (conversion) 1978 2000 Aviation House, 31 Pinkhill housing (redevelopment) 1976 2006 23 Annandale Street housing, office (conversion) 1978 2003

Loss of floorspace > 1,000 to 2,500 sq.m.

117 Dundas Street housing, retail (redevelopment) 1983 2005 16-22 Waterloo Place serviced apartments (conversion) 1819 2008 12-26 Saint Giles Street hotel 1872 2008 Bellesk House, 217 Granton Road housing (redevelopment) 1978 2002 125 George Street hotel (conversion) 1785 2006 64-67 Queen Street language school (conversion) 1790 2005 30-31 Queen Street hotel 1790 2011 16 George Street hotel etc. (conversion) 1780 2006 17 Waterloo Place hotel (conversion) 1819 2009 Sovereign House, 10-12 Young Street serviced apartments (conversion) 1970 2011 8 Roxburgh Place student accommodation (conv’n) 1968 2004 48-52 North Castle Street housing (conversion) 1792 2004 Atholl House, 2 Canning Street housing, office (conversion) 1890 2011 6 Cockburn Street mixed use (conversion) 1861 2010 40-50 Blackfriars Street student accomm etc. (convers’n) 1901 2003