Teacher building let for apartments | RICS monitor
Shepherd Chartered Surveyors has leased the upper floors of Glasgow’s famous Teacher building for use as serviced apartments and is seeking a bar and restaurant operator for the ground and lower ground floors.
The upper floors are currently undergoing an extensive refurbishment by the landlord and have full consent for the provision of 25 serviced apartments for short-term accommodation.
The apartments will be operated by Sonder, a next generation global hospitality company. There is full consent for a pub or restaurant with outside seating.
The Teacher building in St Enoch Square was built in 1875 and is category B listed. It was designed by architect James Boucher, known primarily for his involvement in the design of the Kibble Palace in Glasgow, and built to house the headquarters, offices, and dram shop of William Teacher & Son.
Commercial property market deteriorated last year
Conditions in the commercial property market in Scotland deteriorated at the end of last year, according to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor as the industry faces a challenging environment.
Overall demand from both occupiers and investors fell in the quarter in Scotland, with industrial property the only sector where demand wasn’t in decline.
The fall in demand was marked in the office and retail sectors while occupier demand for industrial space increased.
Paula Mcmanus of JLL in Edinburgh said: “Due to the economic uncertainties, the commercial property market has stagnated. However, there may be some improvements in Q1 of 2023 when investors will be closely monitoring the market.”
Tarrant Parsons, sdenior economist at RICS, said: “The investment side of the UK commercial real estate market has been significantly affected by tighter monetary policy of late, with higher borrowing costs weighing on investor demand and prompting an adjustment in valuation levels.”