The property is positioned on the south side of George Street, in the heart of Edinburgh’s city centre, near Charlotte Square. The redevelopment project aimed to modernise the building while preserving its historical character, blending historic preservation with modern sustainability and efficiency.
The Corporate Occupier team at MF Mac recently acted for Inch Cape Offshore Limited in their acquisition of a lease at New Clarendon House, George Street in Edinburgh city centre. This Grade A office building, newly refurbished by the landlord, offers 34,000 sq ft of office space over seven floors in the heart of the New Town. The building boasts a BREEAM rating of 'Excellent' and EPC 'A' ratings, and is equipped with amenities to encourage active commuting, including cycle racks, e-bike charging points, and shower facilities.
Project overview
The ground floor premises taken under lease will serve as the headquarters of Inch Cape Offshore Limited, a joint venture between Red Rock Renewables and ESB. This company is currently developing the Inch Cape Offshore Wind Farm off the coast of Angus in the North Sea, the largest infrastructure project currently underway in Scotland.
Market context
While this office acquisition indicates a relatively healthy quarter of activity in the Edinburgh office market, there are concerns that a constricted development pipeline may negatively impact transactional volumes over the course of 2025.
Key highlights
- Acquisition of the leasehold interest in the property by the Corporate Occupier team at MF Mac, including reporting and advising on the due diligence for the property.
- Advising the client on the commercial terms offered by the developer and providing input on how those terms could be improved from an occupier's perspective.
- Advising the client on the implications of the lease documentation following the main contractor of the redevelopment entering administration.
- Negotiating and agreeing the building contract with the contractors for the fit-out of the ground floor property.
- Collaborating closely with the client's other external advisers to complete the lease transaction within a tight timeframe.
Conclusion
We were delighted to support Inch Cape Offshore Limited in agreeing the lease within their required timeframe, working together with their other advisors and collaborating across departments and other real estate specialists within MFMac. It was pleasing to help a significant occupier client acquire some of the last space available in the latest Grade A development to be completed in Edinburgh, particularly as the local market has generally seen a reduced supply of prime Grade A office space in Edinburgh city centre.
Without a guaranteed pipeline in Edinburgh city centre and in the context of increasing costs for all businesses, it would be prudent for occupier clients to start planning ahead now and well before their lease expiry to ensure that they can secure the best quality accommodation available to meet their occupational and corporate requirements.
