Companies are being starved of suitable office developments in Glasgow and Scotland’s other economic centres as investors step warily ahead of Brexit, Colliers International has warned.
The commercial property firm said its research shows investors are exercising caution after weathering recent political storms, suggesting that further growth is possible next year and that prime office space will still be in high demand.
Colliers said figures suggest Scottish firms recovered better than their English peers from the shock of the Brexit vote.
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Patrick Ford, a director in Colliers International’s growing Capital Markets team in Scotland, said the last 12 months had seen soaring office demand in Glasgow in particular, where major office deals in financial services and the public sector meant property activity for 2018 was set to be double that seen in recent years at more than one million square feet.
However, Mr Ford, above, said: "Although there is every indication that demand for premium offices will continue into next year - there are several large companies specifically looking for space - it is another matter to persuade developers and investors to make a move at this time.
"It’s unfortunate, as this should be a time of real opportunity for the city, with many key sectors and employers looking to beef up their presence, to take advantage of the skilled workforce, good communications and other advantages Glasgow offers."
In a sign that the city’s economic strategy aimed at nurturing key sectors such as financial services is working, Glasgow has seen large offices sold or leased to HMRC, Barclays and Clydesdale Bank in recent months.
JP Morgan is among those looking for new premises in the city.
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With demand matched by strong investor interest, Colliers has strengthening its capital markets capability in Scotland, with the recent appointment of experienced adviser Elliot Cassels, following Mr Ford’s arrival earlier in the year.
Mr Ford said investor interest in Scotland remains strong, especially from overseas investors, who benefit from the current level of sterling, but that investors likely to wait and see what happens with Brexit..
He said the additional political risk of a second independence referendum has been diluted as a result of the overarching uncertainty surrounding Brexit.
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