Market snapshot

Office Market Pulse Glasgow Q4 2012

The Glasgow city centre office market witnessed a slight increase in take-up during Q4 2012, however remains around 50% lower than the first two quarters. 

In this issue:

Grade B / sub-5,000 sq ft market remains bouyant

Office take-up across the Grade B / sub-5,000 sq ft market has seen a further increase, accounting for 44% of the total take-up in Q4 (37% performance overall in 2012). Occupiers are using lease events to downsize and relocate, with landlords of this type of space now beginning to concentrate on value for money. 

Total take-up for the quarter reached 68,482 sq ft, which is a slight increase on both Q3 figures and that for Q4 2011. However, it is almost 50% less than the first two quarters of the year.

For a detailed breakdown of city centre take-up, please click here.

Significant occupational transactions in Q4 2012

Property   Size Landlord(s)  Tenant / Purchaser 
George House, George Square 14,931 sq ft Redevco Speirs & Jeffrey
Capella, York Street 10,908 sq ft BA Pension Fund Capquest
5th Floor, 150 St. Vincent Street 10,327 sq ft F&C REIT Irwin Mitchell

Rental levels vary

Rental levels in the sub-5,000 sq ft bracket vary significantly, from £10.00 to £18.00 per sq ft depending on the quality of the building and location. 

In terms of Grade A, the recent letting at Capella achieved a rental of £26.00 per sq ft; the top end of Grade A rentals which range from £21.50 to £28.00 per sq ft.  At these levels, it is understood substantial incentives will be available as some landlords remain intent on maintaining heading rents.

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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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