Update on lettings market
Glasgow refurb eases demand for top stock
The £5.5 million fit-out of 191 West George Street (above) is consistent with the current trend for reshaping existing stock in the city which continues to suffer from a lack of new space.
There will be 87,000 sq ft of Grade A space over six levels in the West George St block which will be the only significant self-contained high-spec office refurbishment in Glasgow’s Central Business District to be delivered this year.
David Hidderley, NFU Mutual asset manager, said: “The current demand for high quality Grade A office space in Glasgow gave us the confidence to invest in a significant remodelling and refurbishment project at 191 West George Street.
“We were delighted with the visionary designs selected for the scheme and are excited to see the new and improved building take shape as the works progress.”
Mike Buchan, lead director of letting agent JLL in Glasgow, commented: “The building is undergoing a complete transformation.
“Glasgow currently has a severe supply shortage with no new build developments expected to complete until at least 2020.”
The project team includes building contractor Morris & Spottiswood, architect Michael Laird Associates, engineer DSSR and project manager PSK.
* Harris Finance, whose commercial property division has recently completed the development of two speculative industrial units at Clyde Gateway’s Rutherglen Links Business Park (above), has acquired a further four plots at the development.
The company bought the 2.5 acre Plot C in 2016 and has since invested £2.5m in building two high quality speculative industrial/hybrid units of 20,000 sq. ft. and 10,000 sq. ft. respectively.
These units have already generated encouraging levels of interest from potential tenants.
Harris Finance has now confirmed the purchase of the entire upper platform comprising of Plots D, E, F and G, where they will invest a further £4.2m in building 53,000 sq. ft. of speculative industrial units.
It will begin development works on another speculative 13,000 sq. ft. industrial unit on Plot D in the coming weeks after which development will move onto Plots E, F and G with the final configuration of these remaining plots and the planned 40,000 sq. ft of industrial space to be driven by market demand.
Rutherglen Links Business Park is already home to SPIE which occupies the top two floors of the speculatively-built One Rutherglen Links office building.
Clyde Gateway was established to carry out the regeneration of 840 hectares across the east end of Glasgow and South Lanarkshire.
Working in partnership with Glasgow City Council, South Lanarkshire Council, Scottish Enterprise and the Scottish Government, Clyde Gateway is driving forward £1.5 billion of private sector investment to establish this area as a hub of business activity.
* Savills has negotiated 40,000 sq ft of lettings at Westfield North Courtyard, Cumbernauld on behalf of Canmoor Asset Management following extensive refurbishment on five previously vacant units.
UK supplier of timber, SCA Timber Supply, has agreed a 15 year lease on 30,000 sq ft; Trane UK, the air conditioning system supplier, has signed a 10 year lease on 6,000 sq ft, while Amey, the infrastructure support service provider, has also taken 6,000 sq ft on a shorter 2 year term.
Collectively the deals have increased the headline rental rate at the industrial scheme on from £3.75 per sq ft six months ago to £4.50 per sq ft. This leaves just one unit of 14,000 sq ft available within the estate.