Office take-up in Glasgow, Edinburgh rises

Glasgow Edinburgh

Flexible workspace deals in Glasgow are returning to the regional markets, according to the latest analysis by Avison Young

Total office space take-up in Glasgow city centre during Q2 was 142,821 sq ft – down 13% on the 10-year average, but the highest since the beginning of 2020.

Meanwhile, Edinburgh city centre saw the largest number of deals since Q4 2018, with take-up amounting to 137,705 sq ft – down 4% on the 10-year average.

According to the latest analysis by property advisor Avison Young, flexible workspace deals in Glasgow are returning to the regional markets and accounted for the largest deal of the quarter – 35,787 sq ft to Instant Managed Offices, courtesy of DWP at 200 Renfield Street.

BNP Paribas has taken the 20,700 sq ft first floor of 177 Bothwell Street, while the top floor of Cadworks is under offer and 20,000 sq ft is under offer at 2 Atlantic Square. Both deals are expected to conclude in the third quarter.

There remains a healthy level of new requirements, according to Avison Young, with the Cabinet Office looking for between 20,000 sq ft and 40,000 sq ft, engineering company Aecom requiring 25,000 sq ft and power supplier Aggreko looking for 15,000 sq ft.

Grade A space within Glasgow remains at a premium, with only 6,500 sq ft currently on the market, but just over 200,000 sq ft of speculative new build accommodation will complete during the rest of 2021 – much less than current occupational demand requirements.

Paul Broad, director at Avison Young Glasgow, said: Office occupiers are on the move in Glasgow and there is a clear appetite to reshape and reconfigure office occupation in the city.

While there is still some uncertainty over space requirements many occupiers are looking to hybrid styles of working, which will rely heavily on improved technology for meeting solutions, it’s an extremely exciting time to be leading an office agency business, seeing all the new innovations, he said.

He said: However, there continues to be a divergence of views on the extent to which workers will return to the office, ranging from a complete return to a fully flexible working policy – as a result, flexible workspace deals are returning to the regional markets and accounted for the largest deal of the quarter in Glasgow, and we expect to see a further increase in activity once the Scottish Government announces a return to office working.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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