The developers of a new office building in Edinburgh’s Exchange District have applied for planning consent to add an extra floor which would help alleviate the Capital’s chronic shortage of office space.

GSS Developments (GSS) – who are onsite building 2 Semple Street – said a planning application to extend the building would also ensure it is more in keeping with neighbouring properties in the Exchange.

GSS said their application to add a 5000 sq ft glass-encased sixth floor was on the advice of letting agents and in response to current market conditions where potential new entrants to Edinburgh’s financial centre were being thwarted by a lack of suitable first-class office space.

The 2 Semple Street building is the only Grade A development which will complete and be ready for occupancy in 2018 and GSS said they were seeking to update their plans and to bring them in to line with other office blocks in the vicinity, such as the seven storey Atria building and the eight floor Capital Square development.

Paul Stevenson, GSS Developments director, revealed a prospective tenant and globally recognised brand had recently viewed 2 Semple Street but would require more space than the 38,600 sq ft currently on offer if it was to make its first foray in to Edinburgh.

Mr Stevenson said: “It is widely accepted there is a dire lack of Grade A office space available to rent in Edinburgh city centre and we are delighted that 2 Semple Street is on schedule to be the only development to be ready for occupation next year.

“We are seeking permission to add an extra floor as a direct consequence of market demands and to be able to provide a first-class fit-for-purpose office building capable of attracting a quality tenant who will make a significant contribution to Edinburgh’s economic and social fabric.

“It has become increasingly clear that a number of businesses looking to move in to Edinburgh or to relocate within the city require a footprint of 40,000 sq ft or more and we are responding to that demand.

“The City of Edinburgh Council was very supportive of our post-purchase design improvements to provide a better floor plate and enhanced stone elevations. With the current need to increase availability of Grade A office space within the financial district, we hope the City Council will maintain that positive approach and see the value in extending the 5th floor glass box to be over two floors.

“We recognise that this is unusual, given that we are onsite and construction is underway, but we believe that this innovative proposition provides a time-sensitive opportunity to create much needed floor space.”

As it stands, 2 Semple Street is capable of accommodating up to 350 staff but the proposed extension would provide space for 400 employees and meet the needs of larger potential tenants.

Angela Lowe, senior director at joint letting agent CBRE, said: “An extra 5000 sq ft may not sound a lot but in a city where there is a lack of floor space it makes a significant difference in securing a broader range of tenants. We advised GSS that increasing the floor space will enhance the flexibility of the building and follows the example set by a number of other high-profile developments within the financial centre.

“2 Semple Street is one of only a few speculative Grade A office developments to be built in Edinburgh since the 2008 economic crash. If consent is granted for this extension it reinforces the message that Edinburgh is working hard to address high-level occupier demand and to drive economic growth.”

The current development is due to complete in July 2018 and if consent for the extension is granted it is expected the revised scheme would complete in October 2018.

The delivery of the only speculative office development in Edinburgh which is due to complete next year should help alleviate the Capital’s chronic shortage of Grade A office accommodation.

GSS Developments said 2 Semple Street, located in the city’s Exchange District, has the framework in place and work on installing the elevations will start in the next few weeks, with a final completion date scheduled for July 2018.

Other office projects which are about to start or are underway in Edinburgh are expected to have 2019 and 2020 completion dates, while 2 Semple Street will be the only speculative development to be ready for occupation in 2018.

The 38,648 sq ft office development will accommodate up to 400 employees over five floors, and with view to Edinburgh Castle, it is situated in a prime location in the popular business Exchange District.

Angela Lowe, senior director at joint letting agent CBRE, said: “The office market in Edinburgh has had a record year with take-up topping 1 million sq ft over the last 12 months for the first time since 2004, which is 25% ahead of the long-term average. Grade A availability is down more than 60% on the same quarter as 2016 and the prospects for tenants seeking space over the next 24 months are not good, so it is encouraging that 2 Semple Street will be ready and available in mid-2018.”

Chris Cuthbert of joint letting agent CuthbertWhite added: “The floor plate size and configuration at 2 Semple Street is such that we are speaking to a number of occupiers considering anything from a single floor (7,244 sq ft) to the entire building. On a recent walk round the development we were hugely impressed by how the building is taking shape, and we are now in the position of being able to provide interested parties with a full ‘hard hat’ tour of the development.”

McLaughlin & Harvey Construction managing director, Paul Griffen, said: “Working closely with GSS Developments and our design and supply chain partners from the onset has been key to this project. The in-situ concrete cores, structural steel frame and concrete floors have been completed and the emphasis now is on commencing the envelope which sees the combination of glass, natural stone, brickwork and cladding all come together to create this impressive development.

“The logistics and congested nature of city centre developments present their own challenges, particularly in material distribution, and again we have been working with our suppliers to maximise their requirements to ensure that progress on all elevations is maintained.”

GSS Developments director Paul Stevenson, said: “Other types of developments with less risk are being favoured by funders, which means speculative office projects in Edinburgh are few and far between. While supply of Grade A offices remains very tight, conversely there has never been more demand, and so we are keen to bring 2 Semple Street to market as quickly as possible.”