Consultants at Cushman & Wakefield predict rents in Glasgow’s prime office market could hit £30 per square foot within the next 12 months thanks to three Grade A office buildings being completed.
Fellow property firm Jones Lang LaSalle puts current city centre headline rates in Glasgow at £29.50sq ft and agrees that prices are likely to rise. Cushman & Wakefield expects rising rents in Glasgow’s city centre will have a positive knock-on effect for Grade B office space, peripheral locations and out-of-town offices.
The completion of Connect110ns on Queen Street, St Vincent Plaza and 1 West Regent Street took the amount of Grade A office space available in the city up to about 430,000sq ft, according to the firm’s Q2 2015 Glasgow Market Report, but demand is running at around 500,000sq ft. Andy Cunningham, a business space partner at Cushman & Wakefield, said: “Professional and business services, insurance, technology, media and telecommunications occupiers drove take up this quarter and, during the course of H2 further lettings will be announced. “But with demand outstripping supply, there’s going to be stiff competition for the space, a trend which the city hasn’t experienced for a number of years.”
Cunningham pointed to the benefits for outlying areas, with Finnieston and City Park in the East End signing up call centre operator Webhelp and Exsel IT & Communication, and Hillington and Lanarkshire reporting their best performance since the first half of 2011.
Twenty two deals were concluded in the second quarter, accounting for 94,091sq ft, up from 64,534sq ft for Q2 2014. The largest letting was to Teleperformance, which leased 27,522sq ft at Cuprum, 480 Argyle Street. Twenty nine deals took place in the out-of-town market, totalling 86,833sq ft, up from 65,252sq ft in Q2 2014.