Strong demand for Glasgow office space

Alistair Reid

Commercial office space take-up in Glasgow City Centre rose by nearly half in the second quarter of 2015 compared to the same period last year.

According to new research by JLL, take-up in the City Centre was 97,140 sq. ft. and across Greater Glasgow and the West of Scotland it was 193, 579 sq. ft.

While total take-up in the City Centre decreased by around 30 per cent on the previous quarter, it marked a 45 per cent increase on Q2 in 2014. In total, there were 54 deals completed with 25 of those for properties in the City Centre. 

Alistair Reid, director, JLL, said, “The first half of 2015 has been a strong one for the Glasgow office market, with high levels of demand. Despite a drop in take-up this quarter compared to the first three months of the year, our research shows take-up significantly above the same period in 2014. We have also seen supply increase this quarter, with the major new build Grade A office developments at 110 Queen Street, 1 West Regent Street and St Vincent Plaza all coming onto the market.

“There has been strong interest around these developments over the past three successive quarters and we expect that trend to continue, with immediate supply of Grade A space currently at 612,800 sq. ft.”

JLL was involved in the largest City Centre transaction which saw Teleperformance Ltd acquire 27,522 sq. ft. at Cuprum in Cadogan Square.

JLL was also involved in the largest out of town and peripheral transaction, with Northern Marine Ltd purchasing 14,060 sq. ft. of office space in Clydebank.

Other major deals during Q2 included Arup pre-letting 13,603 sq. ft. at 1 West Regent Street and Arthur J Gallagher UK leasing 9,440 sq. ft. at the Spectrum building.

The City Centre headline rent was £29.50 per sq. ft. and is expected to rise in the second half of 2015.a