Public sector propels office take-up in Glasgow in 2017

New figures have revealed almost half of all transactions for office space in Glasgow in 2017 was by the public sector, following two major Government Property Unit deals at the end of the year.

GVA’s latest Big Nine report shows that in the final quarter of 2017, which was the busiest of the year for Glasgow, both the Department of Work and Pensions and the Scottish Courts and Tribunals Service took circa 80,000 sq. ft. each at Atlantic Quay.

This meant 45 per cent of activity in the city came from the public sector, with a further 45 per cent from professional and financial service sectors.

Paul Broad, business space director for GVA in Glasgow, said: “It was an encouraging finish to the year, as many of these major deals had slipped from Q3 to Q4. Now, with a number of refurbishment schemes completing and the potential for speculative development to return to the Glasgow city centre market, all eyes are on occupier requirements and which occupiers will take the opportunity to take ‘first mover advantage’ and secure the best opportunities. 2018 promises to be very interesting.”

Across the Central Belt, Edinburgh enjoyed its busiest year of office activity since 2004, with over 800,000 sq. ft. of space transacted in the city centre in 2017. Combined with out of town there was over 1mn sq. ft. in deals throughout the year. This record take-up in the capital was buoyed by a number of large deals for professional services and financial firms such as Aberdeen Standard, State Street and Royal London.

GVA’s director of business space in Edinburgh, Peter Fraser, said: “The blockbuster GPU letting in Edinburgh earlier this year has delivered a record year for the city and its credentials as a tech hub has been underlined by a steady churn of activity at the lower end of the market.

“Like Glasgow and other UK cities, demand continues to outstrip supply. In addition to the 210,000sq. ft. of existing Grade A supply, a 100,000 sq ft. speculative development in under construction at 2 Semple Street whilst Hermes and BAM’s speculative 122,000 sq. ft. space at Capital Square has kicked off.”