Office take-up in Glasgow city centre in Q2 more than doubled against the previous quarter according to Jones Lang LaSalle (JLL).
JLL found that city centre office take-up increased to 185,066 sq ft from 87,803 sq ft in the previous quarter.
This compares with 65,605 sq ft over the same period last year.
Total take-up for the first half of the year is 272,869 sq ft, an increase of 116% against figures recorded for the same period in 2009.
According to Jones Lang LaSalle, this increase is the result of large Grade A lettings at new build accommodation within the city which accounted for 73% of city centre take-up on the back of deals by occupiers including NFU, Maclay Murray & Spens, Ernst & Young and Strathclyde Pensions.
The research also points to a reduction of Grade A stock with a 14% decrease in availability recorded over the quarter. As a whole, city centre vacancy rate remained steady at around 9.28% due to increased availability of Grade B and tenant-controlled grey space.
Mike Buchan, director in the office agency team at JLL Glasgow, said: “This is very positive for Glasgow, as the city continues to perform well in a difficult economic climate. It is very pleasing to see high quality occupiers committing their future to the city and to see a large amount of stock being absorbed.”
“We expect to see further Grade A lettings throughout the year, as there remain a number of unsatisfied requirements in the marketplace. There is currently only one building under construction in the city centre, and beyond this no completions are forecast until late 2013 at the earliest, so the further tightening of Grade A availability is inevitable.”
bridget.o’connell@estatesgazette.com
