Glasgow office market enjoys solid start to year as Q1 take-up jumps 145%

0 Colin Mackenzie: Businesses in the city are ‘on the move’ Glasgow’s commercial property market made a positive start to 2018, according to new figures.

Take-up of office space in the city centre amounted to 252,491 square feet in the first quarter, an increase of about 145 per cent on the same period last year and above the five- year average of 198,544 sq ft, analysis by property adviser Knight Frank reveals. The latest Q1 total includes a major government pre-let at Atlantic Square.

The firm said a range of occupiers fuelled demand into the new year, as reflected by recent deals concluded in the sector. Notable agreements include the 180,000 sq ft prelet at Atlantic Square, serviced office provider Orega taking 21,939 sq ft at 9 George Square and HRC Recruitment agreeing to 5,200 sq ft at 180 St Vincent Street.

Colin Mackenzie, office agency partner for Knight Frank in Glasgow, said: “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.

“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.”

Sarah Addis, senior surveyor for Knight Frank in Glasgow, added: “As it stands, all of the remaining Grade A space is either under offer or has noted strong occupier interest, meaning now is the time for the city’s major refurbishment schemes to capitalise on the requirement level and take centre stage.”