Glasgow’s commercial property market sees sharp growth


DEMAND for commercial office space in Glasgow has seen a sharp increase according to the latest research.

Transactions for office space in Glasgow city centre  have more than doubled compared to the same period last year.

Research conducted by real estate and investment management  firm Jones Lang LaSalle (JLL) found that 220,000 sq. ft of office space was transacted in the city centre from July to September.

JLL acquired the largest commercial property transaction of the third quarter of the year.
JLL acquired the largest commercial property transaction of the third quarter of the year.

The resurgence was part of an overall upward trend across Greater Glasgow and the West of Scotland which showed transactions up 40% on the same period last year with a total 288,000 sq. ft snapped up.

The findings showed a total of 51 deals, 34 of which were for properties in the city centre.

Alistair Reid, Director for JLL in Glasgow, said: “As predicted, we have seen a significant spike in take-up during the third quarter of the year, with the average size of floor space transacted up by 83% compared to the previous quarter.

“Supply has been consistently decreasing over the past year, with an overall vacancy rate of 10.2% and new build Grade A vacancy is positioned at 1.5%.

“That figure is expected to continue to tighten until speculative developments come to the market in mid-2015, bringing approximately 418,000 sq. ft. of available office space to the market.

“Glasgow continues to be an attractive proposition for a wide range of businesses, and has benefitted hugely from the attention that came with the Commonwealth Games this summer.

“We now expect a knock-on effect in terms of enquiries and anticipate a strong finish in the final quarter of the year, with a number of deals due to complete before the year end.”

By Tony Connelly