Take-up of Q4 Glasgow and Edinburgh City centre commercial property was well above the five year quarterly average, according to Bilfinger GVA.
The property consultants’s Big Nine research for Q4 shows city centre take up in Glasgow at 211,649 sq ft, well above the five year quarterly average of 135,655 sq ft.
Alison Taylor, Director and Head of Business Space for Scotland at Bilfinger GVA confirmed that Grade A take-up in Q4 of 2015 made up 57% of the total, largely due to the increased supply of new buildings providing occupiers with a choice of modern efficient office accommodation.
“Bilfinger GVA predicted that the three speculative developments in Glasgow would enjoy strong occupier interest and this has proven to be largely the case. In the final quarter of 2015, KPMG and Whyte & Mackay have taken a total of 56,000 sq ft at St Vincent Plaza, whilst CMS secured 21,000 sq ft at 1 West Regent Street and DWF have taken 17,000 sq ft at 110 Queen Street.”
Taylor predicts a similar pattern in the first quarter of 2016 with two significant Grade A lettings having concluded already. With demand for city centre space expected to remain high, Taylor added that more speculative development is likely to commence during 2016 with HFD Group and Titan Investors tipped to be on site first. “Strong demand and the lack of Grade A stock is an issue across regional city centres, with Glasgow being no exception.”
It was a similar story in the capital, with take-up in the centre of Edinburgh up 14% on the five-year quarterly average at 174,610 sq ft. In town, Telereal Trilliums’s Argyle House saw the most letting activity including the largest city centre acquisition by the University of Edinburgh (57,000 sq ft), while Codebase acquired 14,000 sq ft taking its total occupation in the building up to around 75,000 sq. ft.
Peter Fraser, Associate Director at Bilfinger GVA, says that take-up in many out-of-town locations is also on the increase and following three key deals on Edinburgh Park, Edinburgh’s premier business park is now nearly full.”
Edinburgh’s out-of-town take up was 141,389 sq ft, comfortably above the five year quarterly average of 42,269 sq ft. This is partly due to the biggest regional out-of-town deal of the quarter with JP Morgan Chase acquiring two buildings (53,000 sq ft and 31,000 sq ft) at Edinburgh Park. Edinburgh Park continues to recover impressively from the recession with HSBC also taking 31,000 sq ft, while a further 10,000 sq ft has also been let already this quarter.”
Glasgow’s out-of-town letting, 62,648 sq ft, was down on the five year quarterly average of 82,615 sq ft but Taylor added that out-of-town enquiry levels were steadily improving.