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Glasgow’s City Centre office market has experienced its best ever half year performance according to global property advisors, Cushman & Wakefield, with an impressive H1 2018 take-up total of 582,873 sq ft and 51 deals completed.
Q2 take-up figures were boosted by the recently announced 115,000 sq ft pre-let deal to Clydesdale Bank, advised jointly by Cushman & Wakefield and CBRE, for their new HQ at HFD’s 177 Bothwell Street.
There were a further eight deals recorded above 10,000 sq ft, including the 34,728 sq ft letting at 4 Atlantic Quay to the Scottish Executive, SThree Recruitment taking 16,760 sq ft at 95 Bothwell Street and Webhelp acquiring 20,029 sq ft at 67 Hope Street.
Serviced office provider, Regus has also boosted its Glasgow offer with two new centres due to open at 1 West Regent Street, where they have taken 30,933 sq ft, and 19,686 sq ft at 100 West George Street and will operate their ‘Spaces’ format.
Fergus Maclennan at Cushman & Wakefield commented: “It has been a very strong first six months to 2018 with momentum carrying forward from the high levels experienced last year. The catalyst for this spike in take-up activity has been largely due to the increase in pre-let activity from occupiers with large space requirements moving quickly to secure the best space in a constrained city centre market with Grade A supply reducing to less than 1%.
“There continues to be growing occupier interest in Glasgow City Centre with significant pipeline deals anticipated to conclude in the next six months including two significant HQ requirements which will further boost take-up figures and increase pressure on supply. Take-up has already surpassed the 10 year annual average of 492,335 sq ft and achieved 93% of total take-up recorded last year at the half way mark. 2018 is set to be a record breaking year for take-up.
“In the midst of this acute supply shortage which we have long predicted, we continue to provide strategic advice to a number of new potential entrants to the market and a number of high profile occupiers with lease expiries as far out as 2024.”