www.glasgowchamberofcommerce.com 39
GLASGOW OFFICE MARKET STATISTICS FOR 2017
n 627,313 sq ft of office space was transacted in 2017 – over half of which (330,061sq ft) was recorded in the year’s final three months.
n 2017 saw 99 office deals completed, slightly less than in previous years – 2016 (111) and 2015 (125).
n The average-sized deal increased significantly in 2017, resting at 8,702sq ft. The previous average was 5,936 in 2016 and lower still in 2015 at 4,567. The average size deal in Q4 of 2017 reached 11,002sq ft.
123 St Vincent Street
n Significant public sector deals involving the DWP (84,524 sq ft) and Scottish Courts & Tribunals (80,498sq ft) at Atlantic Quay spiked Glasgow’s final 2017 totals, saving the market from a comparatively slow year.
help push up rent for high quality space, perhaps to as much as £30 per sq ft. And he said that’s no bad thing. “It would be good for the market to see a bit of upward movement in rentals because that would help encourage those who are sitting on planning consents and looking to start new developments.” Though the city should see new
supply starting to filter through one of the barriers to progression is the resistance of UK pension funds to get involved in any funding of speculative new developments. Ewan believes Glasgow has always
been slightly ahead of other UK centres by creating speculative office space that’s ready to go. However, there is a danger that other cities, particularly some down south, will move ahead and be able to compete more effectively when national investment decisions are made.
Innovation In his assessment, Stuart Patrick praised the economic contribution made by the city’s innovation districts, which are being created around centres of excellence in the city. Ewan also highlighted this positive trend, highlighting
Ewan Cameron
It would be good for the market to see a bit of upward movement in rentals because
that would help encourage those who are sitting on planning consents”
developments such as The Tontine Building where the city council has created innovation space for companies to grow, and districts at both Strathclyde and Glasgow universities. “These are great news for the city,
not simply in terms of a boost to the property sector, but because they build on our research and development skills,” he said. Other interesting
examples include the refurbishment of the historic Garment Factory which has
recently completed. Located on the
corner of Ingram and Montrose streets in
the Merchant City, the B-listed building
provides 47,382sq ft of office space over six floors with additional restaurant and leisure premises at ground and basement level. Early tenants include 360 Architecture and the digital enterprise firm, Incremental. Similarly, Magenta, a new urban
office park at Shawfield, being developed by Clyde Gateway and Highbridge Properties, proposes 100,000sq ft in a first phase of Grade A office buildings. In addition, Clyde Gateway’s, Red Tree Magenta business suites building will be ready for occupation in May. While the market appears to be
moving along at a steady pace, there’s certainly no room for complacency. In particular, the future will remain bright so long as sufficient new build projects are commissioned soon.
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