Glasgow office space take up levels fall over 50%

Despite take up of Office Space in Glasgow falling more than 50% last year, rental values from prime locations continued to rise, according to data from Cushman and Wakefield.

The take up figure was just over a quarter of million sq feet for 2008, down from 639,512 sq ft in 2008.  However experts believe that there was an overall increase in demand for premium office space at the end of the year that could not be serviced completely due to a lack of availability. This may explain why the rental values could be sustained when in nearly every other cities they are falling.

Nine new schemes are being built, three of which have been pre let, giving the city’s office market a great deal of optimism for 2009.  The headline rent for the city is currently £29.50 per sq ft, but with limited supply of new stock, upward pressure is likely to push this over £30 per sq foot this year.  Experts are forecasting a total take up of around 350,000 st ft, however this would still be some way of the five year average of over half a million sq ft.

Glasgow has faired better than most UK cities because it did not experience the rapid rise is propery values that many other cities did.  However landlords are still having to induce occupancy by offering incentives such as rent free peroids of upto 3 years.

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