Take-up

Q1 2024 take-up in Glasgow totalled 78,000 sq ft across 29 deals in the quarter. Although take-up was 23% lower than the five year Q1 average, it was 27% higher than the total take-up in Q1 2023. The number of deals in Q1 2024 was 21% higher than the same period in 2023, and also 26% higher than the previous quarter, demonstrating continued demand within the market. 

Grade A and Prime accounted for 50% of the quarter take-up, with a total of 39,000 sq ft, continuing to show demand for best-in-class space.

Supply

Combined total availability in Q1 2024 increased by 13% to a total of over 2 million sq ft, with the majority of this secondary space at a percentage of 68% of the total. This means that the overall vacancy rate increased by 140 basis points to 14.1%. 

Grade A and Prime accounted for 32% of the overall total, with a combined 622,000 sq ft. However, the market continues to be undersupplied for best-in-class in Glasgow, with only 0.8 years of Prime availability based on average Grade A demand. 

Take-up by business sector

The most active business sector in Q1 2024 was the 'Professional' sector, which leased a combined total of 33,000 sq ft, therefore accounting for 43% of the total across five deals. The largest deal for the sector and the quarter was 26,000 sq ft at Aurora, which was acquired by PWC. 

Another notable sector was the 'Business and Consumer' sector, which accounted for 11% of the total. This was across three deals for a combined total of 9,000 sq ft. The largest deal of the sector saw Capgemini acquire 6,000 sq ft at 1 West Regent Street. 

Rents

There was no change in the Prime rent in the first quarter of 2024 which currently stands at £37.50 per sq ft. This means that the prime rent has grown by 25% over the last five years. Further rental growth is forecast to reach £38.50 by the end of the year, with latest projections expecting growth to reach at least £45 per sq ft by the end of 2028. This would represent a 17% increase over the next five-year period.

Interested in other areas of the UK?

View all of our latest Q1 2024 Occupational Office Data research here.