Since 2011 Glasgow has seen over £16 billion in capital investment with a new wave of private investment bringing forward a number of planned landmark schemes, across all sectors, primarily in the city centre.
Glasgow City Core is the largest office sub-market outside of London. From modern, award-winning, waterfront offices with large floor plates, to the very best converted and refurbished offices, and an impressive choice of flexible and co-working spaces. Glasgow can provide today’s employers with a truly sustainable working environment and its standing stock offers a good return on investment (ROI) for investors.
Glasgow provides high quality, competitively-priced workspaces. Office rental costs remain competitive in comparison to many UK cities with property costs typically 73% lower than London (West End), 10.5% lower than Manchester and 17% lower than Edinburgh (Cushman & Wakefield, UK Office Market Snapshot Q3 2018).
2018 was a record breaking year for Glasgow with over 1.4m sq ft of city centre space leased. A number of significant pre-lets bolstered the market including Barclays’ 470,000 sq ft purchase at Buchanan Wharf, a major prelet of 187,000 sq ft to HMRC at Atlantic Square and Clydesdale Bank’s 110,955 sq ft prelet at 177 Bothwell Street.
Investment activity in Glasgow has been very strong in 2018 with 49 sales transactions totaling £455.7 million, a year-on-year increase of 28%, with investors availing an impressive average yield of 5.7%. (CoStar – Jan 2019)
Mixed-use development is seen as a key driver in bringing forward new residential, office and leisure development within the city centre. Planned schemes will deliver future homes, hotels, retail and workspace in the city centre and will change how we live, work and socialise. Major projects include the University of Glasgow Campus Redevelopment Masterplan, Buchanan Wharf (Tradeston) and Central Quay.
Glasgow is the UK’s 2nd largest retail centre by spend and achieves the 2nd highest prime rent in the UK. It is an exciting and extensive retail destination for shoppers and continues to attract new lettings within the core retail areas of the city centre. The market is especially competitive on Buchanan Street, delivering strong demand for retail space. In the last 12 months, the prime and super-prime rate has risen to £329 per ft2 equating to a year-on-year increase of 4.8%.
Invest Glasgow staff have their finger on the pulse of commercial property availability and development and can thus provide the most up-to-date information. Contact us today for help identifying your perfect location.