Activity in the market for Glasgow office lettings is at its highest in years according to figures from a leading real estate services company.
Savills said the number of office lettings completed in the city during the first three quarters of 2022 reached 84, which was the largest number of deals seen at that point in the year since it began tracking the Glasgow market in 2013.
The next best year was 2019, when 82 deals were recorded during the first nine months. There were 78 office lettings completed during the same period in 2021.
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The total amount of space let during the first three quarters of this year amounted to 306,000sq feet. The majority of deals, 65% , were for floorplates of less than 3,000sq feet, with occupiers preferring the most efficient options of higher quality, smaller offices.
Colin McGhee, office leasing director at Savills Glasgow, said the increase in activity has been accompanied by higher rents for energy efficient space that is already fitted out and ready for immediate occupation.
“Average rents are strengthening as occupiers continue to show demand for well designed, fit for purpose offices," he said.
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"This weight of demand is unlocking potential to re-purpose tired and redundant offices, by cutting up floorplates to provide for a range of business sizes. Occupiers want flexible lease terms and ‘easy in’ solutions and landlords who deliver this space are being rewarded with strong leasing activity.”
Refurbished Grade B offices such as 24 St Vincent, The Ink Building in Douglas Street and The Beacon in St Vincent Street have performed particularly well, Savills said. Rents on this style of small refurbishment are now achieving up to £30 per square foot, with headline rents for brand new Grade A offices about to reach £36 per square foot.
The firm added that the finance, professional services and TMT sectors accounted to 42% of all letting activity in the first three quarters of this year.
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