Ryden: Decoding Current Trends and Dynamics of Glasgow’s Occupier Office Market
By Gillian Giles, Office Agency Partner at Ryden.
Lucent, Bothwell Street, Glasgow
The Glasgow occupier office market is currently at an exciting juncture. Depending on the type and quality of the building it can present both opportunities and challenges. On one end, some landlords with Grade A office spaces are experiencing buoyant demand driven by high quality requirements. On the other end, some are facing high voids and increased costs, and due to changes in vacant rates, there is a lack of investment directly hitting landlords’ purses.
Today’s occupiers are switched on and highly informed, seeking to provide workspaces to retain talent. Given the significant costs and efforts associated with recruitment, having an attractive work environment is paramount. Despite the tough years for landlords and businesses, the majority of occupiers still want staff to spend time in the office, and consider lease events as opportunities to either improve their current space or relocate to better facilities.
Although daily office attendance has decreased for many, the amount of space required has not changed significantly. Occupiers are now looking for accommodation with superior facilities and amenities beyond the standard office fit out, particularly in the SME sector.
A number of Grade A buildings from the last development cycle are being closely evaluated by tenants nearing the end of their lease terms, comparing their current spaces with new offerings focused on modern amenities and building services. Those buildings with first generation facilities now feel tired and outdated.
This inevitable shift in a market that is always evolving has led to an increased demand for next generation facilities and more luxurious and spacious surroundings, including for example “spa style” showers and high end hair and clothing accessories. Features like extensive cycle storage, repair and e-bike charging stations or powered lockers for charging are also expected.
ESG continues to move up the agenda. Companies are willing to increase their rent for buildings with better credentials and their preferences are shifting towards all electric floors and workplaces that support their journey towards decarbonisation.
Tenants are recognising the value of additional common area spaces not to reduce their required space but to offer added benefits to their staff. The next generation of office worker seeks stylish, green buildings with breakout spaces and outdoor access. Decision makers now must try to provide these within their budgets.
Some of these, often very simple additions can make a huge difference in a viewing and we note that some occupiers place more weighting on these than simply considering the floor space alone.
At Ryden, we have the extensive experience and knowledge to tailor our advice to any business requirement and support both landlords and occupiers in navigating the new office space landscape effectively. Many landlords recognise they need to respond to these current trends and are working hard to provide these demands to the occupiers, who will undoubtedly see the financial effort in their lease well rewarded by their staff.
You can see all of the commercial property available from Ryden on NovaLoca here.
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