31 Oct 2018
The strength of Glasgow’s commercial office property market has been recognised once again this month after the ‘Bank of London and The Middle East’ acquired 1 Atlantic Quay for £55m.
The pipeline of proposed speculative office development has been hailed as the strongest in years, as the city centre market is set to achieve a record-breaking one million square feet of take up, according to figures released by international property advisors Cushman & Wakefield.
This follows strong 2017 results after Morgan Stanley moved into their 154,814 sq ft property on Waterloo Street, while the Scottish Courts & Tribunal Services and Department of Work & Pensions each took up properties at Atlantic Quay on the Broomielaw, which measure 80,498 sq ft and 84,542 sq ft respectively.
Last week, property consultants Savills released figures suggesting that investment into commercial office space in Scotland in 2018 will reach a 10-year high with the total expected to exceed £2 billion.
Fergus Maclennan of Cushman & Wakefield said that 2018 will be a “transformational year for Glasgow and, in particular, the International Financial Services District.”
Analysis of commercial property activity in Scotland by property consultancy Savills has shown that investments in the Scottish commercial real estate market have so far totalled £1.74 billion in 2018, with a further £265 million under offer at the start of fourth quarter.
Half of that has taken place in Glasgow, showing the buoyancy of the city’s commercial property market.
Bill Ritchie, chair of the Scottish chapter of the British Council for Offices (BCO), said: “Certainly, in my career I don’t remember more offices being developed in Glasgow.
“I think there is more opportunity at the moment. People are seeing value again in Scotland which they are capitalising on.”
The boost to Glasgow’s market has come as membership of the BCO in Scotland hits an all-time high. There are now 200 members of the organisation, over double the total in 2013.