Take-up for the Glasgow office market totaled 135,155 square feet between April and June, an increase of 9.6% from the second quarter of 2021, according to property adviser CBRE. Total year-to-date occupancy is 230,651 square feet, up 16.5% from the same period last year.
Glasgow witnessed two deals in the period that topped the 20,000sqft marker – Ovo Energy taking 33,905sqft at recently completed Cadworks and serviced office provider Wizu letting 24,350sqft over three floors at 2 West Regent St. Additionally, there was more activity at Onyx on Bothwell Street with beverage giant Diageo agreeing to rent 12,438 square feet over two floors.
Office supply continues to increase in the city, but “best-in-class” Class A space remains scarce, CBRE noted.
Of the 2.9 million square feet of office space currently available in the Glasgow market, only 134,194 square feet are considered Grade A, representing just 0.59% of Glasgow’s entire office stock, depending on the company.
Martin Speirs, Associate Director of CBRE in Glasgow, said: “We are entering an interesting period in the Glasgow office market, with A-level supply continuing to decline and demand for prime space remaining.
The war for talent is becoming evident and it is only with attractive and exciting office spaces that occupants will succeed in attracting and retaining their best employees, but also, above all, in encouraging them to return to the workplace.
Meanwhile, office take-up in Edinburgh totaled 87,168 square feet in the second quarter, down 45% from the same period in 2021 and down 65% from the five-year Q2 average of 251,458 square feet. Even so, the total take-up for the year to date is a “healthy” 206,094 square feet, CBRE noted.
Notable re-equipment deals include Scottish Ministers’ 89,000 square foot space at Silvan House and Skyscanner committing its future to Edinburgh’s Quartermile One by extending its lease.
The largest transaction of the quarter took place at Exchange Crescent, with Dukosi taking 12,000 square feet. Copenhagen Offshore Partners negotiated 5,318 square feet at the recently completed 10 George Street and Manor Estates took 5,073 square feet at New Mart Place.
Stewart Taylor, Principal of CBRE Edinburgh, said: “The recovery in the Edinburgh office market continues. The market has also seen an unprecedented level of expectations as occupants are slow to make longer-term commitments due to both uncertainty about future space requirements and the lack of current Class A availability.
“The flight to quality, a national trend, has been accentuated in Edinburgh by a sharp drop in supply and a limited pipeline. As occupiers increasingly focus on employee satisfaction and how the space contributes to their environmental goals, it was the best buildings that garnered the most interest with reduced focus on rent.
“Large-scale occupants know that to get the best space, they need to move fast and early.”
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