Latest research by global real estate consultancy CBRE shows that office take-up for the first half of 2019 totaled 259,501 sq ft.
The latest findings indicate that occupier demand for larger templates has increased within the Glasgow market. Q2 2019 has seen a return to larger lettings, with four deals surpassing 10,000 sq ft compared to a single deal exceeding this size during the first quarter of the year.
Notable deals included the 41,665 sq ft taken by Hilton at 191 West George Street, the 20,227 sq ft at 141 Bothwell Street secured by JP Morgan, and the 13,801 sq ft at Granite House let to Clydesdale Bank. Tech giant ARM Holdings took 26,910 sq ft across the ground and first floors of St Vincent Plaza, with the development now fully let.
The amount of Grade A space available within the city centre is now at an all-time low. There remains only 12,297 sq ft on the market, representing a vacancy rate of just 0.09% for Grade A accommodation. Supply of Glasgow space has dropped overall and now sits at 1,224,629 sq ft.
Alistair Urquhart, an associate director in CBRE’s Advisory and Transaction Services team, said: “The critical shortage of Grade A space remains a major issue within the Glasgow office market and as a result, we expect to see prime rents in the city centre rising at a faster rate than usual.”
Camille Casey, an associate director in CBRE’s Capital Markets team added: “There is the possibility that the rise in Grade A rents will have a knock-on effect, leading to occupiers with high specification requirements turning their sights to recently-refurbished Grade B space, in turn putting upward pressure on rents for this type of office space. As a consequence, the Glasgow office market is proving increasingly attractive to investors looking to capitalise on the lack of Grade A supply.”