Glasgow’s commercial property market saw take-up decrease in Q3 but the overall outlook for 2016 remains positive.
According to new research by JLL, take-up in the City Centre was 97,085 sq ft, down 42 per cent from 166,914 sq ft in Q2.
Across Greater Glasgow and the west of Scotland, take-up was 137,919 sq ft In total, there were 51 deals completed with 26 of those for properties in the City Centre.
Alistair Reid, director, JLL, said: “2016 continues to be a strong year for Glasgow’s office market with total take-up exceeding the five-year average with three months of activity still to come.
“One of the major trends this year has been limited availability of Grade A stock which in turn has seen real competition for refurbished Grade B accommodation.
“We expect to see office stock continue to reduce, providing more favourable market conditions for landlords. We are unlikely to see commencement of a new office development until well into 2017.”
The largest deal of the quarter saw Edrington Group let 29,890 sq ft at 100 Queen Street. Other major deals included CGI taking 9,374 sq ft at the Inovo Building and Search Consultancy Ltd taking 9,116 sq ft at Atrium Court.
Around 71 per cent of enquiries received in Q3 were focused on the City Centre, with 34 per cent of all requirements for locations between 3,000 sq ft and 5,000 sq ft.
The City Centre headline rent remained stable at £30 per sq ft, while the overall vacancy rate is at 10.83 per cent but more alarming is the Grade A vacancy rate of 2.3%.