Refurb set to relieve Glasgow's grade A office space shortage

Latest figures reveal that 312,288 sq ft of office accommodation was let in the first three months – the highest figure for Q1 since company records began.

High profile lettings include Morgan Stanley signing for 154,814 sq ft at HFD Group’s 122 Waterloo Street, Registers of Scotland renting 17,249 sq ft at Abstract’s St Vincent Plaza, and The Association of Chartered Certified Accountants taking the final 55,750 sq ft at BAM Properties’ 110 Queen Street.

Andy Cunningham, Cushman’s head of business space, said: "The market started to bounce back in Q4 of 2015 when, after what felt like an extended summer slowdown, a number of occupiers moved quickly to secure the best available offices.

"Our big concern going forward is lack of new premium office accommodation. With 110 now fully let, there are really only two other new buildings in the market, 1 West Regent Street and St Vincent Plaza, with some remaining floors already under offer."

Planning permission has been secured for four new office buildings – Atlantic Square, New Exchange, Broadway Central and 177 Bothwell Street. Only the last, a 215,000 sq ft scheme, shows signs of starting construction.

Cunningham warns that it could take three years before these are ready for occupation, leading to a record low of less than 100,000 sq ft of new build available in 2017 and 2018.

If current demand continues – and the Herald is aware of a dozen leading companies with live requirements – then rents will almost certainly rise to more than £30 per sq ft.

"While many people are happy to buy a house or apartment ‘off plan’, companies in Glasgow prefer to see buildings under construction or finished," he said. "Over the past 25 years less than ten per cent of speculative office buildings have been pre-let – a tiny proportion compared to other UK cities."

While there are advantages to early commitment – de-risking business continuity and negotiating better terms – occupiers often view property decision making well down their list of priorities.

Lack of new supply opens the doors to refurbishments, city centre buildings which have had millions invested to bring them up to quality and energy efficient standards. New to the market this month is a fine example at 100 West George Street, a former RBS building which has been redeveloped by a partnership between owners Whiteburn Projects and London & Scottish Investments.

With advice from architects Bennetts, this late 1980s building has been stripped back to its internal frame and walls, and a 12-step entrance dropped to become DDA compliant. Exposed concrete and good ceiling height have been retained and the four floors of 5000 sq ft each are ideal for the market. Colin McGhee of JLL, joint letting agent with Phil Reid, has not given up hope of a single occupier. Services have been totally replaced, with VRF heating and cooling, LED lighting, shower/wet rooms and the basement has cycle and car spaces.

The property already looks financially sound, having signed a pre-let with burger chain Byron for its street level retail. But it is the location five minutes from Queen Street and Central stations – and the £22 per sq ft rental that will ensure its office space is also a commercial success.

Bridgeton goes international

With Bridgeton fast becoming a location of choice for creative businesses looking to get ahead and grow, it’s no surprise to see the area featuring heavily in this month’s Glasgow International, a world renowned festival of contemporary art.

Clyde Gateway’s modern and striking Albus building, the David Dale Gallery, Crownpoint Studios and Glasgow Women’s Library, all in rapidly transforming Bridgeton, are among the venues for a programme of exhibitions, events, talks and performances, running until April 25.

Culture and community are now mixed with business and inward investment, which has seen record label Chemikal Underground and the British Film Institute’s Mediateque make their home in the district.

Independent WEST Brewery, digital creative agency MadeBrave and software company Clear Returns are other examples of East End based companies enjoying major success.

David Wilson, director of Opfer Logan Architects, saw the exciting potential of moving a mile out of the city centre to a new base in the former Post Office depot in Bridgeton: "While some may view it as a risk to move from traditional locations in town, we have been energised by our move to the East End, creating the open plan office and studio space we dreamed of."

Perhaps the best example of Clyde Gateway’s flexibility in merging business and community is The Olympia building, where an £8 million conversion supporting 45 jobs features a public library and café at street level, a high performance centre for Boxing Scotland at first floor and the University of Glasgow occupying the entire top floor office space.