Another strong year for city

Office take-up in Glasgow almost doubles

St Vincent Plaza
St Vincent Plaza, Glasgow

Take-up of Grade A office space in Glasgow’s city centre almost doubled in 2015, according to new research by JLL.

A total of 570,905 sq ft was transacted in the city centre, 15% above the five-year average.  Grade A space makes up 314,256 sq ft, representing a 90% increase on 164,773 sq ft in 2014, although total take-up is down from 643,442 sq ft.

While the total space taken was down slightly, the value of space increased with a headline city centre rent of £31 per sq ft. There were a total of 124 transactions in the city centre last year, compared with 129 in 2014.

Across Greater Glasgow and the West of Scotland, there were 249 deals totalling 998,742 sq ft.

The last quarter of the year saw 34 deals in the city centre, for a total of 211,649 sq ft, providing an average deal size of 6,225 sq ft. This marks an increase on the 181,628 sq ft transacted in the fourth quarter of 2014.

Alistair Reid, director for JLL in Glasgow, said: “For the Glasgow office market, 2015 was yet another strong year with a number of key positives. The addition of 1 West Regent Street, 110 Queen Street and St Vincent Plaza helped to drive lettings of Grade A space, with a number of deals at these addresses being finalised in the last quarter of the year.

“Several high-profile companies took substantial space in the city, signifying the buoyancy of the market which continues to appeal to a wide variety of businesses.

“As we enter 2016, we expect to see the refurbishment of Grade B office space emerge as a key trend due to a lack of active construction. A number of refurbishments are already underway, including 95 Bothwell Street, 100 West George Street, 9 George Square and 100 Queen Street.”

Vacancy rates in the city centre have decreased to 10.28 per cent, with Grade A vacancy at 3.08 per cent. The immediate supply of Grade A space is 493,171 sq ft, of which 88% is new build.

The largest deal in 2015 saw professional services giant KPMG take 39,705 sq ft at St Vincent Plaza in November.

Other major transactions included Weir Group taking 25,514 sq ft at 1 West Regent Street in January and Teleperformance Ltd acquire 27,522 sq ft at Cuprum in April. JLL were involved in both transactions.

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