Investment in Glasgow offices over the first 10 months of 2024 has exceeded last year’s total, according to Knight Frank.
The consultancy’s research found that £198m has been invested in the city’s offices so far this year, up 46% on last year’s £136m recorded for the same period. The move comes amid the city’s commercial property market’s continued recovery from the sharp rise in interest rates between 2022 and 2023.
There have been 14 major transactions completed year-to-date, up on last year’s 11 deals done over the same period. Largest deals include 1 West Regent Street, a 143,429 sq ft multi-let building acquired by Corum in April this year for £45.8m and 122 Waterloo Street, Morgan Stanley’s 157,000 sq ft Glasgow office bought by Iroko Zen (pictured).
John Rae, head of Glasgow office at Knight Frank, said: “We have begun to see more activity from French investors in Glasgow and the wider Scottish market, with many of them viewing the UK as being good value and further ahead of other parts of Europe in the economic cycle.
“We expect to see more interest from France in future sales. With a more stable environment and more stock likely to become available, there is a sense of cautious optimism for the remainder of 2024 and going into 2025.”
Douglas Binnie, capital markets partner at Knight Frank, added: “Conditions are still challenging, but there is a steadier flow of deals coming through in Glasgow. There are signs that investors are more willing to dip their toes in the market, with price expectations converging on both the buyer and seller sides. Interest rates being on a downward trajectory and a clearer sense of policy direction for the next five years should provide more a supportive backdrop for the months ahead.”
Image © Knight Frank
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