The headline rates for office accommodation in Glasgow are now back to the level they reached five years ago - and it may not be long before the peak rate of #20 per sq ft in 1991 is reached again.
But that is still considerably less than the rates being secured in Edinburgh. The lack of supply and the announcement of the Scottish Parliament location has brought forward an increase in demand which has pushed rents in Edinburgh upwards to nearer #25 per sq ft. However, Glasgow is reaping the benefits of the wide spread of office accommodation, ready and available for relocation and indigenous companies.
This range of property in terms of type and quality to satisfy the different market sectors has been welcomed by the Glasgow Development Agency's Business Location Services. A spokesman said: ''The market is still orientated towards call centres and service industries, as opposed to regional headquarters. But the buildings are becoming available and we are delighted as it allows us to target a range of quality inward relocating companies.''
''The total take up of office accommodation over the last year is probably the highest it has been for about nine years,'' said Ewan Cameron, partner in charge of offices at Ryden, Glasgow.
He said: ''The most recent property in the city ranges from the completed refurbishment of the former health board headquarters building at 225 Bath Street, where approximately 88,000 sq ft of refurbished space with rent being quoted at #12 per sq ft. The building has been transformed and is particularly suitable with flexible leases, for call centre type operations.
''At the other end of the scale is Alhambra House, which is around 95,000 sq ft. This has a top quality specification with full access rates and air conditioning and is available in floors or multiple floors for #20 per sq ft. In addition to these two there are other recently completed new developments awaiting owner occupation.''
A significant move in the recovering market was the opening of No 9 George Square, a #9m redevelopment of the CIS Building. DTZ Debenham Thorpe, agents for the scheme, are confident that the space of 64,500 sq ft over 10 floors will prove attractive to occupiers seeking the combination of a prestigious address and flexible space in the city's commercial centre. Individual floors range from 3863-7111 sq ft and on site parking is provided for 23 cars.
The building has been designed by Glass Murray Architects, Henry Boot Construction UK Ltd has been carrying out the redevelopment work, and DTZ Debenham Thorpe is the sole letting agent.
The redevelopment involved the complete demolition of the interior behind the retained Grade B listed facade and the erection of a new structure - a building originally designed in the twentieth century, now redeveloped for the 21st.
Jim Dick, of Glass Murray Architects, said: ''In the retention of the building's original facades of the 1920s and its remodelling, the links with Glasgow's tradition of quality commercial buildings and its future as a commercial centre are maintained. Developing not only the themes of the original architect, James Miller, but also meeting the requirements of office users in the 21st century.''
Cameron said: ''The most recent deal was the take up the Grosvenor building in Gordon Street, which was just over 50,000 sq ft in a joint venture between Ernst Young and Shell to form a European service centre. The market really needs a similar type of take up to keep the momentum going.
''The business park at Pacific Quay has now completed its first building of 29,500 sq ft and there is rumoured interest in that. ''
''The only prime building to be let in recent years in its entirety was at 131 St Vincent Street which was a new development. Ryden let the 225,000 sq ft, new build behind a facade, and prime space has recently been taken up at 227 West George Street where 3i has taken around 5800 sq ft and Channel 4 has taken over 5000 sq ft.''
''The quality of floor space in Glasgow is a welcome addition to the large floor plate market, and with such IT and lease potential tenants in both the tele sales/call centre and the professional sectors, the city can look forward to achieving prime rental values.''
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