The commercial property market in Glasgow city centre has increased by approximately 145% compared with the same period last year. A range of occupiers fuelled demand into 2018, as reflected by recent deals concluded in the sector.
Out of those deals, the most notable agreements included GPU’s 180,000 sq. ft. pre-let at Atlantic Square, serviced office provider, Orega, taking 21,939 sq. ft. at 9 George Square, commercial property agents, GVA, acquiring 4,698 sq. ft. at Sutherland House and HRC Recruitment agreeing to 5,200 sq. ft. at 180 St Vincent Street.
Knight Frank said there has already been 252,491 sq. ft. of take up this year, much higher than the 103,000 sq. ft. taken up in the first quarter of 2017 and above the five-year average of 198,544 sq. ft., though this includes the Government Property Unit’s (GPU) pre-let at Atlantic Square.
“Businesses are on the move – as demonstrated by the Glasgow office market’s growth in Q1 and indeed shown by the spike in deals at the close of 2017,” said Colin MacKenzie, office agency partner for Knight Frank in Glasgow.
“However, even with a very healthy development pipeline offering some fantastic schemes, it will be 24 to 36 months before any of those are deliverable. With Glasgow’s occupier requirements currently sitting at 850,000 sq. ft., we will undoubtedly enter into a period of significant pre-letting as occupiers jostle for prime sites, some of which are likely to be announced in the near future,” he continued.
Most of Glasgow’s Grade A spaces are either already under offer or have noted strong occupier interest. This means that now is the perfect time to start the city’s major refurbishment schemes, which will take centre stage soon.
