Glasgow close to having no top grade offices to let
Office space in Glasgow is at a premium (pic: Terry Murden)
A critical shortage of top grade office space in Glasgow means it will take only one “modest” letting to leave the city with nothing to offer potential tenants or investors.
The first ever detailed survey of the city’s office market by real estate adviser CBRE has found that only 6,400 sq ft, or 0.02%, of Grade A space out of a total 2,067,464 sq ft is currently vacant.
Andy Cunningham, senior director, described the situation as “serious” and could deter companies and investors from coming into the city. He put the blame partly on the trend to convert offices to residential use, fuelled by the demand for city centre living and home working.
“There is a severe shortage of space at the top end of the market – it would take only one fairly modest letting before there is simply nothing available for occupiers seeking ready-to-occupy truly Grade A accommodation,” he said.
“This is a serious issue for companies coming to the end of their existing leases or considering locating in the city, meaning Glasgow could fail to retain or attract some key organisations and investment.”
He said the drop in available office stock can be explained partly by the trend towards converting offices to residential.
This has overtaken the pre-Covid trend of converting office buildings for hotel use.
Increasingly landlords with Grade B buildings, which need a big investment to bring them into line with their competitors, are reviewing their options in case they can find a higher value use for their asset.