The Glasgow home of Morgan Stanley has been put up for sale in what is expected to be one of the biggest office deals in the city this year.

Knight Frank and Cushman & Wakefield have been jointly appointed to market the building at 122 Waterloo Street, which solely occupied by the US banking giant and is its largest European office outside London. Morgan Stanley employs more than 2,000 people at the “mission critical” hub.

The building, which opened in 2018, offers 156,980 square feet of Grade A office space over nine storeys, and is said to be among the city’s most sustainable properties, with an energy performance certificate A rating and BREEAM “excellent” certification. It was recognised as Scotland’s top corporate workplace in the 2020 British Council for Offices awards for features such as ergonomic breakout areas, collaboration and meditation spaces, an in-house restaurant, and on-site wellbeing facilities.

The property is being sold by an unnamed client of Knight Frank Investment Management. A report in CoStar News, a dedicated property news site, suggested offers in excess of £54.5 million are being sought for the building on behalf of a private Korean investor.

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John Rae, head of office at Knight Frank Glasgow, said: “122 Waterloo Street is a prime asset located at the heart of Glasgow’s International Financial Services District, backed by a very strong covenant in Morgan Stanley – particularly given its ‘mission critical’ status.

“Glasgow has seen an upturn in deal activity in the first few months of 2024, so we expect to see a good level of interest, with buyer and vendor expectations moving closer together as interest rates appear likely to stay higher for longer.”

Murray Strang, managing partner for Scotland at Cushman & Wakefield, added: “In terms of building quality, tenant covenant and resultant income security, not to mention the strong opportunity for rental reversion and future potential for value uplift, this opportunity should be highly attractive for a range of international investors and parties considering investment into a leading, regional UK office market.”

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