Number of Office Lettings Hits Record High in 2022
1st Dec 2022
New research from Savills reveals that the number of office lettings in Glasgow in the first three quarters of 2022 was 84, the highest number at this point of the year since Savills' records began in 2013.
The increased activity has been driven by occupiers prepared to pay higher rents in exchange for well-designed, energy-efficient space that is already fitted out, including includes furniture, that allows them to move in immediately. The majority, 65%, of deals in 2022 are sub 3,000-square-foot floorplates reflecting more evidence that occupiers are choosing the most efficient options.
Savills says refurbished Grade B offices that offer smaller floorplates are letting well, with deals at 24 St Vincent Place, The Ink Building and The Beacon.
Rents on this style of small refurbishment are now achieving up to £30 per square feet with headline rents for brand new Grade A offices about to reach £36 per square feet.
Colin McGhee, Office Leasing Director at Savills Glasgow, said:
“Average rents are strengthening as occupiers continue to show demand for well designed, fit for purpose offices. This weight of demand is unlocking potential to re-purpose tired and redundant offices, by cutting up floorplates to provide for a range of business sizes. Occupiers want flexible lease terms and ‘easy in’ solutions and landlords who deliver this space are being rewarded with strong leasing activity.”
According to Savills, Glasgow continues to be attractive to a wide range of occupiers, with Q1-Q3 recording 42% of activity from finance, professional and technology, media and telecoms sectors. It remains that smaller lettings of higher quality offices has driven demand during this record breaking period marking a post-pandemic shift for many occupiers.