Market snapshot

Office Market Pulse Glasgow Q3 2012

Occupational levels in Glasgow city centre remained steady in Q3. However due to the lack of grade A availability, the city has witnessed an increase in demand and take-up for good specification grade B properties.

In this issue:

Take-up remains steady for grade B stock

Core city centre take-up in Q3 2012 was 61,795 sq ft; slightly less than the 89,023 sq ft transacted during the corresponding period in 2011. Grade B refurbished stock continues to meet demand as total grade B take-up reaches 52,944; a 36% increase on Q3 2011.

Significant occupational transactions in Q3 2012

Property Size Landlord (s) Tenant / Purchaser
1st Floor, 144 Elliot Street 11,450 sq ft Steven Shear Anglo Eastern Shipping UK Ltd
3rd & 4th Floors, 1 Cadogan Square 10,357sq ft  IVG Teleperformance
3rd Floor, Alhambra House, 45 Waterloo Street 7,174 sq ft Friends Provident JP Morgan
7th Floor, Sutherland House, St. Vincent Street 4,824 sq ft F&C Reit CBRE
3rd Floor (S), 8 Nelson Mandela Place 4,494 sq ft CBRE Global Investors Waterman Boreham

Grade A supply remains limited

Grade A supply within Glasgow City Centre currently stands at around 271,000 sq ft with two buildings, Cuprum, Argyle Street and Copel at Atlantic Quay accounting for 57% of this figure. At present, these are the only two new grade A buildings which can accommodate a 50,000 sq ft requirement.

There remains an increasing amount of high quality grade B refurbished stock within the market and currently there is around 350,000 sq ft of this accommodation available.

There are currently no grade A buildings under construction and no other new developments commencing in 2012/2013. Due to the current economic climate and lack of funding opportunities, it is doubtful whether any will start over the next two years.

Rental Levels vary across the city centre

Headline rents for prime grade A stock within the city centre vary significantly from £22.50 per sq ft to £28.00 per sq ft. 

There is a wide variance within the grade B sector rents within the city centre and these tend to be around £12.00 per sq ft to £21.00 per sq ft, depending on the quality of accommodation; 151 St. Vincent Street is the exception, with an asking rent of £25.00 per sq ft.

Out of town demand has increased

In Q3, Lanarkshire saw around 29,500 sq ft take-up, which included deals to the Valliant Group (9,617 sq ft) at Maxim Eurocentral, Fruit of the Loom (5,997 sq ft) at Murdostoun House Strathclyde Business Park and Clyde Blowers (8,496 sq ft) at Orbital House East Kilbride.

Currently, out of town total supply sits at around 1.5m sq ft with Maxim accounting for around 35% of this figure.

Out of town demand has increased in the West of Glasgow with Q3 take-up around 58,000 sq ft, which could be a result of stronger communications links to the West/East via the M74 extension.

Headline rents in the out of town market currently sit at around £17.00 per sq ft, although these are masked with very competitive incentives.

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Aasia Mohammad | Director - Business Space | Glasgow
Aasia Mohammad

0141 226 6786

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Aasia Mohammad
Director - Office Advisory

0141 226 6786

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