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Glasgow is a city at the forefront of change. Over the last few decades its economy has undergone significant restructuring which, together with considerable investment from both public and private sources, has enabled Glasgow to weather the worst of the post financial crisis years.
Take-up in the city centre increased to 127,000 sq ft in Q1. This was the strongest quarter of lettings in two years and was driven by a 48,000 sq ft pre-let to Brewin Dolphin at Atria.
Although still tough, 2010 was an improved year for the Scottish economy, as it continued its emergence from the deepest recession in decades.
City centre activity was broadly unchanged in Q3 at 152,000 sq ft. The majority of transactions were grade B, sub-10,000 sq ft and focussed in the city centre.
City centre activity increased again in Q2 to 153,000 sq ft as several long standing large grade A requirements completed as expected.
Research conducted by Jones Lang LaSalle suggests that the UK big box market will contribute to a rosier future for the Scottish market.
Take-up in the city centre fell to 54,000 sq ft in Q4 (Figure 1). Firms from the financial sector, which often underpin occupier demand in the city, were notably quiet.
“Demand for office property has edged upwards during 2010. The industrial market is performing well, although occupier demand is mainly latentfor larger properties. The retail sector continues to be weak except for superstores and new shopping centres.
City centre take-up increased to 114,000 sq ft in Q3 (Figure 1). One of the largest deals in Q3 was again at WaverleyGate since quoting terms have been reduced following the former owner’s administration.
City centre take-up fell back in Q2 to 63,000 sq ft. The bottom of the occupier market arguably occurred in Q3 2009, but activity continues to be erratic from quarter to quarter while underlying demand is thin.