JLL: take-up of Grade A office space in Glasgow centre almost doubled in 2015

A total of 570,905 ft² was transacted in the Glasgow city centre, 15 per cent above the five-year average.

Grade A space makes up 314,256ft², representing a 90 per cent increase on 164,773ft² in 2014, although total take-up is down from 643,442ft².

While the total space taken was down slightly, the value of space increased with a headline city centre rent of £31 per sq ft. There were a total of 124 transactions in the city centre last year, compared with 129 in 2014.

Across Greater Glasgow and the West of Scotland, there were 249 deals totalling 998,742ft².

The last quarter of the year saw 34 deals in the city centre, for a total of 211,649ft², providing an average deal size of 6,225ft². This marks an increase on the 181,628ft² transacted in the fourth quarter of 2014.

Alistair Reid, director for JLL in Glasgow, said:

“For the Glasgow office market, 2015 was yet another strong year with a number of key positives. The addition of 1 West Regent Street, 110 Queen Street and St Vincent Plaza helped to drive lettings of Grade A space, with a number of deals at these addresses being finalised in the last quarter of the year.

“Several high-profile companies took substantial space in the city, signifying the buoyancy of the market which continues to appeal to a wide variety of businesses.

“As we enter 2016, we expect to see the refurbishment of Grade B office space emerge as a key trend due to a lack of active construction. A number of refurbishments are already underway, including 95 Bothwell Street, 100 West George Street, 9 George Square and 100 Queen Street.”