THE shortage of prime office space in Glasgow city centre has been branded “critical” after a surge in demand for larger premises in the first half, writes Scott Wright.

Property firm CBRE declared the availability of Grade A offices had fallen to an all-time low as it released figures showing nearly 260,000 sq ft was taken up between January and June. The take-up was well adrift of last year’s first-half figure, though CBRE noted that the 593,901 sq ft tally for the opening six months of 2018 was skewed by commitments by CYBG and HMRC to each lease more than 100,000 sq ft.

CBRE noted that the

second quarter had been characterised by a spate of major lettings, including the move by Hilton to lease 41,665 sq ft at 191 West George Street, and by giant ARM Holdings to take 26,910 sq ft over two floors at St Vincent Plaza. JP Morgan snapped up 20,227 sq ft at 141 Bothwell Street as the Wall Street bank continues to expand its presence in the city, while Clydesdale Bank let 13,801 sq ft at Granite House.

CBRE said only 12,297 sq ft of Grade A space is currently on the market. Alistair Urquhart at CBRE said: “The critical shortage of Grade A space remains a major issue within the Glasgow office market and, as a result, we expect to see prime rents in the city centre rising at a faster rate than usual.”