The preference of financial institutions’ direct marketing arms for Glasgow has emerged as a major reason for the city’s lowest supply figures since 1991. According to a report by Scottish property consultants Ryden, overall supply has fallen to 176,510 sq m (1.9m sq ft), creating a shortage of large, good quality offices.
Euan Cameron, partner at Ryden’s Glasgow office and co-author of the report,said: “In the last ten years, these organisations chose Glasgow ahead of Edinburgh because Edinburgh was suffering from a shortage of suitable stock. Now the situation is reversing.”
In the last ten years, Direct Line, BBC Radio Helpline, Barclays Share Shop and TSB have all set up direct marketing operations in the city. Last year, for the first time, the Glasgow Development Agency organised a conference specifically for these organisations. It is set to be repeated again this July.
But Cameron points out that Scottish Amicable’s decision last week to vacate its 10,684 sq m (115,000 sq ft) Glasgow headquarters at 150 St Vincent Street is a major blow. This move follows Norwich Union’s recent decision to leave the city.
The report goes on to predict that there will be little speculative development over the next 12 months. However Scot Am’s 7,209 sq m (77,600 sq ft) scheme at 183 St Vincent Street, and CIS’ 6,207 sq m (66,816 sq ft) Lomond House at 9 George Square, should be completed in 1997.
Ryden’s survey also notes that rents have stabilised in Glasgow at £188.37 per sq m (£17.50 sq ft). Incentives of a year to 18 months are offered unless contracts include break options.
EGi News 24/04/96
