Prime Glasgow office availability is falling – Colliers International
Vacancy levels for Grade A office space in Glasgow are falling as new supply remains scarce, says Colliers International. Take-up of Grade A office space in Glasgow during H1 2011 was the lowest since H1 2009, but availability of top-quality office space still fell by 9% during the first half of this year. Overall occupancy of Grade A space in Glasgow rose to 81% in H1 2011, compared with just 52% in 2007.
Transactions totalled 153,669 sq ft in the first half of this year, which was 27% below the total for the previous six months. Major deals focused on the out-of-town market, so take-up in the City Core fell by 29%. Colliers International says there were only two deals recorded in the city centre above 15,000 sq ft during the first half of this year.
Net stock absorption of office space in the Glasgow market fell by 89,054 sq ft during the first half, with the increasing release of secondhand office space back onto the market a significant factor in this reduction, the firm says. Grade B availability rose by 18% during H1 2011, and overall office availability also increased during this period, for the first time since H2 2009. However, Colliers International notes that has been a sharp fall in availability of Grade A units of more than 50,000 sq ft in the City Core – there are currently only two schemes that can accommodate requirements of this size or more.
Prime rents in Glasgow remain at £29.00 per sq ft, and Colliers International says there is no expectation that they will rise in the next half-year.
