Strong start to 2015 for Glasgow office market

Demand for commercial office space in Glasgow was strong in the first quarter of 2015, according to new research by JLL.

Take-up in the City Centre was 142,358 sq ft and across Greater Glasgow and the West of Scotland it was 293,233 sq ft.

In total, there were 77 deals completed with 37 of those for properties in the City Centre. The number of total completed deals increased by 13 per cent on the previous quarter and 5 per cent on the corresponding period of 2014.

JLL contributed to 36 per cent of take up per sq ft on behalf of landlords and was involved in 40 per cent of acquisition take-up per sq ft.

Alistair Reid, director, JLL, said:

“Total take-up in the city centre has started well in 2015 with only a slight drop from a very strong end to last year.

“Supply has increased slightly with additional Grade B space coming back to the market but for the second quarter in a row it remains below the 10% vacancy rate at 9.9%.

“We will see overall supply increase as the new build office developments in the City Centre are delivered to the market beginning in the second quarter of the year.”

JLL was involved in the biggest City Centre deal of the quarter, which saw Weir Group take 25,514 sq ft at 1 West Regent Street.

JLL also acted for Webhelp in the largest out of town and peripheral transaction which saw the company acquire 33,217 sq ft at CityPark in Glasgow’s East End.

Other major deals during Q1 included Woolgar Hunter purchasing 13,216 sq ft at 226 West George Street and Clydesdale Bank acquiring 10,012 sq ft at Granite House in Stockwell Street.

The City Centre headline rent was £29 per sq ft and is expected to increase this year due to the new Grade A offices coming to market.

1 West Regent Street is set to open in quarter two, followed by 110 Queen Street and St Vincent Plaza later in the year.