COMMENT Working together as a multi-discipline real estate team, we have been envisioning ways Glasgow can remain relevant, drive demand for its places and spaces and achieve its significant potential. As the Japanese proverb states: “vision without action is a daydream”. The key is creative and collaborative endeavours to deliver innovative places where people will choose to live, work and play.
Glasgow is poised for growth. We have the completion of Solasta, one of the most successful build-to-rent schemes in the UK, a pipeline of a further 2,000 BTR units, the arrival of new brands like Soho House and Virgin Hotels to the city, and the creation of exciting masterplans and pre-application developments. But, as in multiple global locations, many projects are on pause due to escalated construction and finance costs, as well as softer yields.
Finding participants who have the ability to develop and hold innovative mixed-use assets for the longer term, and to underwrite rents on innovation spaces where there are little or no comps is challenging in the current market. Only the best schemes will be built this cycle: no longer is it good enough to plan and build uninspiring boxes and expect people to turn up.
While it is still relevant to talk about yields, rents, leases and cost, we have to become more fluent in a wider vocabulary to communicate “value” in today’s real estate. A greater focus must be placed on experience-led accommodation and seamless, blended spaces. Such terms are apparent in the university sector’s quest to achieve a mix of social and study; in the potential of vertical farming in city centres; in leisure spaces which blend reality with digital experiences; and in the provision of creative, learning retail spaces – think Apple Store.
Glasgow currently has the most robust prime residential property market in the UK thanks to the relative strength of the local economy, value for money and quality of life. The demands being placed on Scotland’s housing sector are not insubstantial, with a greater focus on sustainability. But the result is some of the most inspiring places to live, including the cutting-edge, biophilic-inspired New Steiner on the site of the B-listed former Steiner School on Yorkhill Street, which is quickly selling out.
Again, ESG has played a large part in what occupiers want in the office market. This has changed since the pandemic, with a renewed focus on employee productivity and wellbeing. It’s now all about the “experiential office”, mirroring trends already seen in the retail sector, which is transforming in response to changing consumer habits. The St Enoch Shopping Centre is probably the best example of this dynamic, changing from retail over-provision to a mixed-use focal point in the heart of the city that feels relevant once again.
It is the spaces between the places which bring a defining buzz to Glasgow, and its cultural heritage is one of its key strengths. Along with being named a Unesco City of Music, its commitment to diversity is demonstrated through events like the Mela Festival and LGBTQ+ Pride celebrations. The Glasgow School of Art is world-renowned, and the city has attracted Banksy for his first exhibition in 14 years.
The city’s entrepreneurial and creative spirit has ignited a surge in tech start-ups and associated co-working spaces that provide resources, mentorship, and funding. Bruntwood SciTech is a case in point, with its vision for the Grade B listed Met Tower to become a commercial hub where university spin-outs, start-ups, scale-ups and high-profile tech businesses can benefit from being part of an innovative tech cluster. This forward-thinking and inclusive approach can be leveraged by office developers and landlords looking to establish a presence, encouraging individuals from various backgrounds to contribute their unique perspectives, enriching the city’s talent pool.
Sectors like technology and life sciences will drive the city forwards, but we need to deliver the facilities that support the growth of both new and existing businesses. Likewise, higher education plays a role, with Glasgow now home to more than 92,000 students, the third highest student population in the UK. Student accommodation is significantly undersupplied and thousands of new beds are required to address current demand and future growth. This is key in order to retain young graduates and attract new talent to the city from across the globe.
Glasgow has huge potential to compete with leading European cities and become a truly sustainable destination to live, work, play and visit. The raft of announcements aimed at making this happen – from innovation funding to new policies and strategies like National Planning Framework 4, the Low Emission Zone and the Golden Z Report (discussing the future of the prime retail patch) – have come thick and fast.
However, ultimately collaboration and accountability, resulting in action, among all those with a stake in Glasgow’s built environment, will be essential if these innovations are to become more than just a daydream.
David Cobban is head of office at Savills Glasgow
