Glasgow

Q1 2022 city centre office take-up in Glasgow totalled 82,270 sq ft, reflecting a 57% decrease from the 5-year average and a 5% decrease from Q4 2021. However, while take-up was down, deal count remained in line with the 10-year average and showed a slight improvement on the previous quarter.

The Professional services sector was the most active during Q1 accounting for almost 90% of city centre take-up above 5,000 sq ft. Key new occupiers included Burness Paull and BDO, who leased 14,814 sq ft and 8,078 sq ft respectively at 2 Atlantic Square; and Fairhurst which signed for 10,262 sq ft at Tay House, 300 Bath Street.

During Q1, office availability in Glasgow increased by 6% and now totals 2.26 million sq ft, as a result the vacancy rate has also increased from 10% at the end of 2021 to 10.6% at the end of Q1 2022. However, there remains a lack of available Grade A stock within Glasgow city centre and just 169,214 sq ft of total availability is considered to meet Grade A standards; made up of space within Cadworks, 2 Atlantic Square and 177 Bothwell Street.

The majority of Glasgow’s development pipeline is pre-let, with 97% of office space under construction already pre-committed to with only the remaining 30,764 sq ft at 177 Bothwell Street available to let.

The significant demand for Grade A office space in Glasgow has seen rents increase by 15% over the last 5 years – which has continued into 2022, with prime rents increasing by a further 2%, reaching £35.25 per sq ft, with rent free periods remaining at 15 months on a ten-year term.

In the out-of-town market, take-up totalled 50,544 sq ft, which reflects a 32% decrease from both Q4 2021 and the five-year quarterly average. Key deals included Linear UK Group Limited which leased 15,089 sq ft at Maxim 7, Eurocentral and SWECO which signed for 6,449 sq ft at City Park.

TAKE UP: Q1 2022

City Centre

82,270 sq ft

Out of Town

50,544 sq ft

HEADLINE RENT

City Centre

£35.25 per sq ft

Out of Town

£16.50 per sq ft

UNDER CONSTRUCTION

Total

1,130,000 sq ft

Prelet

97%

PRIME YIELD

Q1 2022

5%

TOP FIVE DEALS: Q1 2022

KEY SECTOR ACTIVITY: 12 MONTHS TO Q1 2022

Financial services

31%

Professional sevices

27%

Government services

11%

TAKE-UP

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