2010 ends positively for the Glasgow office market

DTZ research shows take-up of office space in the city in 2010 ended on a high note

Article posted: 21 Jan 2011

Research conducted by DTZ reports that a key barometer of the health of the city’s service sector – the take-up of office space in central Glasgow – finished 2010 on a high note. According to figures just released, take-up in 2010 for Glasgow’s city centre finished 5% higher than the 10-year average.

Notable deals at the top end of the market reached circa 204,000 sq ft, including Scottish & Southern Energy’s purchase of One Waterloo Street (pirctured), NFU’s purchase of the Clarion Building and two lettings totalling 60,000 sq ft at G1 in the city’s George Square to major accountancy firm Ernst & Young and leading Scottish law firm Maclay Murray & Spens LLP. The final letting of 2010 took place at 2 West Regent Street, where serviced office specialists I2 have established their first base in Scotland.

DTZ also reports that Grade B take-up reached 209,000 sq ft, taking the total city centre office take-up to 413,000 sq ft for Grade A and B accommodation combined. Of the most notable Grade B transactions was a letting of 30,000 sq ft to Royal Sun Alliance. In total DTZ report 65 deals having been completed on Grade A and B accommodation within Glasgow’s city centre in 2010, representing a 20% increase in deal transactions and a 5% uplift in floor space transacted compared to 2009.

While 2010 proved to be a very uncertain year due to the UK general election and the anticipation of the impact over public sector spending cuts, DTZ suggests that 2010 was also a year of opportunity for those who were able to exploit market conditions to best effect.

Looking ahead to 2011, DTZ anticipates that some uncertainty will exist around service sector take-up in the run-up to the Scottish general election in May and there will be lingering concerns over the impact of public sector spending cuts north of the border. Despite this, the outlook is one of cautious optimism for 2011.

For breaking office space news relating to offices in Glasgow follow us on http://twitter.com/officespacenews

Posted by Jules