Jones Lang LaSalle has forecast an increase in office rental levels for the first time in five years, according to its annual Edinburgh City Report.

Occupier take up in 2006 was down to 12% due to a lack of larger corporate companies looking for space in the market, as only one deal was complete that was over 3,000 square metres. Bu t during the fourth quarter, the market began to witness an upturn in occupier activity with a number of deals progressing into legal hands.

The supply of Grade A space has decreased, pushed by the fact that, for the first time in 15 years, no new speculative developments have been completed throughout Edinburgh in 2006.

Alasdair Humphery, head of the Jones Lang LaSalle Edinburgh office, said: “With occupier activity increasing in the office market and the development pipeline slow to react, we anticipate that 2007 will witness increased pre-letting activity and potentially rental growth for the first time in five years.”