Moving from Cadogan Square
Hilton hotel checks in to 191 West George Street
New home in Glasgow for Hilton
International hotel operator Hilton has become the latest tenant at the recently refurbished 191 West George Street in Glasgow’s city centre.
In what is one of the largest commercial property deals of the year so far in Glasgow, the hotel chain has taken approximately 42,000 sq. ft. of office space across three floors.
The operation was previously located at Cadogan Square.
Knight Frank acted for owner NFU Mutual, while JLL represented Hilton, which joins existing occupiers Hewlett Packard and Edrington-Beam Suntory UK at the development.
A Hilton spokesperson said: “We are pleased to announce that next year our Glasgow corporate office will relocate to an exciting new workspace at 191 West George Street.
“The new office will allow us to continue to deliver on our promise of providing a great place to work for our team members.”
Tom Foley, NFU mutual asset manager, said: “To secure a high calibre tenant such as Hilton Worldwide Limited for the quantum of space being taken is a great result for the fund.
“The strong tenant line-up in the building endorses the asset management decision to refurbish the building upon the previous occupier’s lease expiry in 2016.”
Edinburgh offices approach turning point
Demand for office space in Edinburgh has remained robust despite the headwinds caused by a protracted Brexit process, according to analysis from Knight Frank.
The consultancy said there were 500,000 sq. ft. of live named requirements in the city, the bulk of which was made up by demand for Grade A space. This is more than double the 10-year average annual Grade A take-up of 220,000 sq. ft.
Occupier activity between April and June saw the supply of office space diminish to record lows by the end of Q2 2019, with city centre take-up in excess of 110,000 sq. ft. Professional services firms represented the highest share of activity, followed by finance, banking and insurance and the technology, media, and telecommunications (TMT) sectors.
There is now just 235,000 sq. ft. of Grade A space available in Edinburgh city centre and, while a handful of new developments are under construction, most are already wholly or partially pre-let to occupiers. Among them, Capital Square, expected to complete in Q3 of 2020, has already let 43,174 sq. ft. and 25,265 sq. ft. to law firms Brodies and Pinsent Masons, respectively.
The largest deal of the second quarter was WeWork securing 44,000 sq. ft. at 80 George Street. Knight Frank said the arrival of the co-working firm could act as a catalyst for similar operators to set up in Edinburgh, particularly following a recent report from Tech Nation that named the city as one of the top locations for tech companies in the UK.