| scotland
MAJOR NEW BUILDS LEAD TO HUGE SURGE IN GRADE A TAKE-UP
Alistair Reid
according to new research by JLL. A total of 570,905 sq.ft was transacted in the city centre, 15 per cent above the five-year average. Grade A space makes up 314,256 sq.ft, representing a 90 per cent increase on 164,773 sq.ft in 2014, although total take-up is down from 643,442 sq.ft. While the total space taken was down
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slightly, the value of space increased with a headline city centre rent of £31 per sq.ft. There were a total of 124 transactions in the city centre last year, compared with 129 in 2014. Across Greater Glasgow and the West of Scotland, there were
249 deals totalling 998,742 sq.ft. The last quarter of the year saw 34 deals in the city centre, for a
total of 211,649 sq.ft, providing an average deal size of 6,225 sq.ft. This marks an increase on the 181,628 sq.ft transacted in the fourth quarter of 2014. Alistair Reid, director for JLL in Glasgow, said: “For the Glasgow
office market, 2015 was yet another strong year with a number of key positives. The addition of 1 West Regent Street, 110 Queen Street and St Vincent Plaza helped to drive lettings of Grade A space, with a number of deals at these addresses being finalised in the last quarter of the year. “Several high-profile companies took substantial space in the
city, signifying the buoyancy of the market which continues to appeal to a wide variety of businesses.” The largest deal in 2015 saw professional services giant KPMG take 39,705 sq.ft at St Vincent Plaza in November.
MONTEITH HOUSE
the multi-let office building known as Monteith House located in the heart of Glasgow’s George Square on behalf of Alliance Trust Real Estate Partners for 14% in excess of asking. Monteith House is a Grade B Listed
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office building arranged over basement and 7 upper floors extending to 27,000sq.ft and let entirely to a mix of national and government tenants with a WAULT of 5 years. Sandy Gilmour, Head of Investment at
Graham+Sibbald and who acted for Alliance Trust says: “We knew from our knowledge of the local market that Monteith House would offer an extremely attractive investment opportunity to a wide mix of local, national prop co’s and institutional funds.”
raham + Sibbald’s Investment Department secured the disposal of
is to lease new offices at CONNECT110NS, 110 Queen Street, in Glasgow’s Style Mile to support the strategic aims of the firm and enhance the working environment for its people. The law firm will occupy the entire
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fourth floor of the building, a total of 18,544 sq.ft of space, on a 15 year lease. With offices in 14 locations in the UK, Dubai, Brussels and Ireland, the Glasgow team will relocate from their current office at 310 St Vincent Street in 2016. Mark Broderick, Development Director
Scotland, BAM Properties which developed the Queen Street building said, “DWF was keen to secure prime office space enabling the opportunity for expansion and we are delighted DWF chose CONNECT110NS. Earlier this month we welcomed our first tenants and it’s terrific to see the building start to come to life.”
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ake-up of Grade A office space in Glasgow’s city centre almost doubled in 2015,
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CLEARBELL SELLS 1 WEST REGENT STREET TO M&G REAL ESTATE
learbell, the private real estate fund manager, today announces the sale of its 50% interest in 1 West Regent Street, a Grade A
building located in Glasgow city centre, to M&G Real Estate. 1 West Regent Street comprises 143,000 sq.ft of Grade A office over ten floors and three retail units on the ground floor. A fund managed by Clearbell acquired 1 West Regent Street in
2012 in a joint venture with M&G to speculatively develop Grade A office space in Glasgow’s city centre, seeking to address the shortage of centrally located, modern Grade A offices. Completed on time in April 2015, Clearbell, acting in its role as
development manager, delivered a new Grade A building which has set new standards for Glasgow with its virtually column free floor plates, the quality of the building facilities and its energy efficiency having achieved an EPC A rating. 1 West Regent Street is currently 73% let with a WAULT to first
break of over 13 years, having attracted high calibre tenants such as Weir Group PLC, CMS, Arup, FDM Group, Global, Shepherd and Wedderburn and Giraffe. Manish Chande, senior partner at Clearbell, said:
“We recognised the need for better quality office space for businesses in Glasgow and for institutional investors seeking long dated income. The development at 1 West Regent Street was intended to address this need. We have ensured the building has excellent sustainability and design credentials to attract a high calibre of organisation. “Since finishing the development we have secured a number of
high calibre tenants, highlighting the quality of the building design and accessible location. By capitalising on the demand for office space outside of London, we have achieved a significant return on our initial investment.”
CONNECT110NS
eading legal business DWF
reports: “Following the changes announced by the Scottish Government in its December (2015) budget, from April 2016, relief on empty industrial properties is to be cut from 100 per cent to 10 per cent after three months exemption, whilst offices and shops will see their three months exemption changed to 50% relief for 3 months, falling to 10% relief thereafter. The change for industrial properties follows the move in England from 2008 to charge full rates after six months exemption. In addition, the Small Business Supplement, which is paid by larger businesses to fund relief for small businesses, will rise from 1.3p in the pound to 2.6p in Scotland, while remaining at 1.3p in the pound in England. The reform comes at a time when
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Scotland is experiencing early signs of improvement in the speculative industrial development market. However, while the announcement has sparked widespread speculation in the market, landlords of well-located commercial property in Scotland may benefit as new development cools off once more.
COMMERCIAL PROPERTY MONTHLY 2016
RELIEF CHANGES IN SCOTLAND
oss Sinclair, director in the business space team at Savills Scotland
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