Take-up

Q1 2023 take-up totalled 62,000 sq ft across 24 transactions. This was 9% above the five-year average for the number of completed Q1 deals in the Glasgow city centre market.

The largest deal in Q1 was the 21,000 sq ft letting to Transport for Scotland at George House. This was the only deal over 10,000 sq ft in a quarter which saw the majority of its activity coming from the smaller size bands of spaces.

Supply

Total supply stood at 1.54 million sq ft at the end of Q1. This represented a 2% decrease in the first quarter of 2023. Total Grade A supply at the end of Q4 was 426,000 sq ft with just 82,000 sq ft of prime supply available in the market.

Total vacancy rate for the market reduced by 20 basis points in Q1 to 10.3%, with Grade A vacancy rate standing at just 2.9% as a proportion of total market stock.

Take-up by business sector

The Public Services, Education & Health sector was the most active sector in Q1, accounting for 38% of overall take-up. This was spread across three deals and was largely driven by Transport for Scotland’s 21,000 sq ft letting at George House.

Elsewhere, Professional was the second most active sector, accounting for 19% of overall take-up. Professional occupiers showed a greater preference for fitted suites early in 2023, with 80% of the completed deals being for plug-and-play space.

Rents

There was no change in the prime rent in Q1 2023, which currently stands at £36 per sq ft. This means that the prime rent has grown by 11% over the last five years. Savills fully expects that there is further room for growth in the market, with most recent forecasts projecting growth to £37.50 per sq ft in 2023 with further growth to £42 per sq ft by the end of 2027.

Interested in other areas of the UK?

View all of our latest Q1 2023 Occupational Office Data research here.