Glasgow
Take-up
TOTAL TAKE-UP IN QUARTER (SQ FT)
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
TAKE-UP (SQ FT)
Source: Avison Young
Take-up in Q4 totalled 204,743 sq ft, 21% up on last quarter but 17% below the 10-year quarterly average. This brought 2023’s total take-up to 669,289 sq ft, 31% below the 10-year average.
Take-up was comparatively stronger in the out-of-town market at 12% above the 10-year average, whereas city centre take-up was -31% below.
Key deals included:
- Flexible workspace provider Cubo’s 19,375 sq ft lease at Aurora, 120 Bothwell Street;
- Heathrow Airport’s 15,121 sq ft lease at Lightyear, Glasgow Airport Business Park;
- Envevo’s 12,934 sq ft lease at New Lanarkshire House, Strathclyde Business Park.
The past 12 months have seen demand from a variety of sectors, professional services, TMT and creative and manufacturing and industry, which together accounted for 57% of take-up.
Glasgow’s prime rent remains unchanged from last quarter at £39.50 psf, now 9.7% up on last year.
NOTABLE DEALS
Source: Avison Young
PRIME RENT
Per sq ft
Quarterly Change
Source: Avison Young
12 Month Change
Rent free months (10-year lease)
TAKE-UP BY SECTOR
Source: Avison Young
ANNUAL TAKE-UP (SQ FT)
Source: Avison Young
Availability
AVAILABILITY RATE
CHANGE ON LAST QUARTER
CHANGE ON LAST YEAR
AVAILABILITY (SQ FT)
Source: CoStar, Avison Young
The city centre availability rate fell 9 basis points to 10.7% in Q4. Premium quality space remains undersupplied, with the grade A availability rate at 3.2%.
Development pipeline
DEVELOPMENT PIPELINE (SQ FT)
Source: Avison Young, PMA
173,792 sq ft of refurbished office space is set to be delivered by early 2024 at Aurora, 120 Bothwell Street where both Cubo and News UK have already signed up. There is a further 45,000 sq ft under offer taking the property to almost 50% pre-let. The refurbishment of Lucent, 50 Bothwell Street, is expected to complete in Q2 2024, with 59,063 sq ft of speculative space remaining available. With iQ (previously The Grid) now completing in 2026, a total of 517,027 sq ft speculative space is due to come to market over the next four years. JP Morgan’s pre-let One Central is also due to complete early 2024.
Investment
TOTAL INVESTMENT VOLUMES
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
PRIME YIELD
INVESTMENT VOLUMES
Source: Real Capital Analytics, Avison Young
INSIGHT
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TOP DEALS
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