Record industrial letting inked

A packaging firm has agreed what is Scotland’s largest industrial property letting this year.

UPAC Group has signed a 15-year lease for 120,000 square feet of space at 133 Barfillan Drive, Cardonald, on the outskirts of Glasgow.

Commercial property advisor GVA acted on behalf of the landlord John R Adam & Sons on the deal, in what experts say is a sign of the “good health” of the industrial property market.

Craig Semple of GVA said: “This is not only Scotland’s largest industrial letting of 2017, it’s also one of the most significant in what has been a strong year for the market across all size ranges.

“Prime industrial rents in Glasgow have increased by as much as £2 per sq ft, rising from £6 to £8.”

Chris Kelly, managing director of UPAC Group, said: “After growth of almost 25 per cent year-on-year for the past four years, we had been searching for a new central hub for two years.

“Our list of demands was sizable to meet our current needs but accommodate for our projected future growth.”

The site originally encompassed 200,000 sq ft of space but GVA anticipated it would be difficult to market due to a lack of yard space and tight boundary. It then advised the landlord to demolish the west side of the complex, which was in poor condition and amounted to about half the total square footage.

This allowed a large secure yard space to be created as well as a 120,000 sq ft unit featuring a two-storey office and car park.

Semple added: “Businesses across the UK are interested in Scotland again thanks to a relatively settled business environment compared to previous years.”