Published February 2011 and updated May 2023] The outlook for the office space market in Glasgow has improved as take-up increased in 2010 for the first time in several years.
Demand for grade-A office space in the Scottish city has been particularly strong, with businesses from the financial services sector among those most keen to expand their presence or establish a new operating base in Glasgow.
According to Colliers International’s latest figures, a total of 263,545 sq ft of Glasgow office space was freshly occupied over the course of 2010 and the first half of the year saw the strongest levels of rental activity.
The cost of renting space in central Glasgow remained roughly unchanged over the course of 2010, with companies including Royal & Sun Alliance and NFU Mutual adding to their office stocks and taking advantage of relatively low rates.
See examples of office spaces to let in Glasgow here
Despite the apparently positive data for Glasgow office space market in 2010, analysts at Colliers are cautious about the prospects for the sector this year and concerns are being raised over the impact of impending public sector spending cuts across the UK.
“We fully expect the public sector to divest itself of further office space over the next 18 months, as and when leases expire,” Guy Grantham, director of research and forecasting at Colliers International told Scotland On Sunday.
Colliers International has 13 office bases of its own in the UK and a total of almost 500 worldwide. The commercial real estate advisory company reported recently that central London’s office market saw an increase in take-up of 40 per cent over the course of 2010, with the West End having seen the strongest growth in demand.
Editor’s notes: In 2022, the total amount of space taken in Glasgow through office lettings deals was 409,200 square feet.
The 10-year average take-up figure had grown to 671,400 square feet so 2022’s figure was 39% below this.
This was partly down to a lack of pre-leasing deals in the year compared to previous years as well as the general slowdown in leasing activity caused by general uncertainty across the global markets.
For the very best office space in Glasgow, headline prime rents have grown to £36.00 per square foot.