Confidence is high in Scotland’s commercial capital. Denis Hall analyses the findings of the Estates Gazette/APR Regional Occupier Research survey.
On the basis of the responses of the 100 commercial property occupiers surveyed, Government intervention enjoys a better reputation among Glasgow businesses than elsewhere in the country.
Two issues highlight this difference. The proposed reorganisation of local government – which will result in the break-up of Strathclyde Regional Council – has divided opinion. South of the border, by contrast, similar changes to local government have been generally welcomed by local businesses.
Almost half those questioned in Glasgow saw the move as a backwards step, with some claiming that the proposal was motivated by political rather than efficiency considerations.
Some see it as simply wrong in principle: “It is totally wrong. It is big, but it works. It is the best local authority in Scotland. The break-up is politically motivated from central government. . . just like the GLC. It’s nothing but gerrymandering and political massaging.”
Others see it as just another reduction in the region’s clout with Whitehall. “We won’t get the same amount of attention. Smaller councils have less clout and get ignored. Strathclyde Regional Council has been effective.”
There are some dissenters. About a quarter of respondents see the break-up as a positive move – often for the same reasons as those who oppose the council’s demise.
Local reaction to the Glasgow Development Agency follows a similar pattern. More than half feel that the GDA does an effective or reasonable job in its attempts to attract inward investment to the city. Unfortunately, the most frequently quoted success – the MOD decision to take space in the city – now seems to have been postponed indefinitely. This disappointment is further ammunition for the quarter of those questioned who feel that the GDA is either ineffective, or has yet to make its mark on regional patterns of inward investment.
The consensus of support for Government-backed investment is highest for some of the longest established of these initiatives. More than half those surveyed (57%) see the impact of the new towns and enterprise zones as positive, generating economic opportunity, particularly for service companies in Glasgow.
Another 19% believe that the new towns are separate markets and do not affect Glasgow, while 13% feel that the new towns divert potential new business away from Glasgow.
But perhaps the most telling testimony to the success of public-sector investment is occupiers’ pride in Glasgow. Over 90% of those interviewed declared that the city’s image had “dramatically improved” in recent years. Both the “Glasgow Miles Better” campaign and the 1990 “City of Culture” events are perceived to have been especially positive influences in altering the image of the city. Just 6% defy the common wisdom to declare that the image could be further improved.
One proud citizen speaks for almost all: “Glasgow has improved beyond all recognition. It is now the financial and commercial capital of Scotland.”
One of the most prominent symbols of the new Glasgow is recent commercial development along the Broomielaw. Just under 50% of those questioned see this trend as good for the city’s economy and image. “The Broomielaw development has regenerated an area that desperately needed it and provided more space for incoming businesses”, says one occupier.
But 13% fear that development here would have a negative effect on the city centre’s stock of offices. Few, it must be said, share this view, with 30% registering no opinions either way on the effect of the Broomielaw on the city centre.
Broomielaw is not the only rival for the city’s traditional business districts. More than 37% of occupiers state that they would be interested in an out-of-town location. The most favoured locations are a business park or somewhere on the outskirts of the city.
And there are enough dissatisfied occupiers in the city to be a potentially lucrative source of business for Glasgow agents. Two-thirds of occupiers declare themselves satisfied overall with their accommodation. But of the dissatisfied 26%, 42% give outdated accommodation, and 27% inflexible or cramped space as their chief complaints.
When asked about their future property intentions, 68% claim that they expect to maintain their existing space during the next three years, 5% envisage a reduction in their space requirements and 26% of occupiers expect that they will acquire additional space over the same period.
The principal reasons for requiring additional space are business growth, additional staff requirements and the need to move to more modern offices. Companies most likely to expand are those in the professional, service, and manufacturing sectors. Firms with less than 50 staff are less likely to expand their premises in the future than those with 100 staff or more.
Few, however, would look to Edinburgh for new premises. More than 70% of those questioned do not see the national capital as a rival office location. As one local businessman puts it: “It’s the financial capital and it’s very specialised whereas Glasgow offers everything – commercial, manufacturing, financial. Edinburgh is more of a tourist attraction. If anything, Glasgow is catching up on Edinburgh and moving into its traditional territory as new technology makes actual location less crucial.”
And, in any contest, Glaswegian businesses are confident that their city would win. When asked to list the advantages and disadvantages of the city as a commercial location, occupiers listed twice as many advantages as disadvantages. Of the 100 questioned, 38 occupiers declare that there are no disadvantages to being located in Glasgow.
Good national and international communications are named as the key advantages. Occupiers also rate the availability of educated, quality staff more highly than was the case in the EG/APR surveys of Bristol, Cardiff, Birmingham or Manchester.
But, while occupiers are confident that the city has improved dramatically in recent years, many feel that the “no mean city” image persists and this is rated as the greatest disadvantage being located in Glasgow. There is some resentment at the persistence of this reputation. Only two respondents mention violence and crime as a disadvantage being located in Glasgow.
Disquiet over the city’s relationship with central government is highlighted in the ranking of the city’s disadvantages. Second in line after the city’s rough image, 14% of occupiers put distance from the decision makers in London and the South East as a key disadvantage. By contrast, parking and public transport, while listed as disadvantages, are not seen as important issues.
Top of occupier concerns stands the cost of renting property, the level of the area’s business rates and the choice of commercial property in the city.
Despite these complaints, a quarter of those surveyed say that they plan to acquire additional space during the next three years. About two-thirds intend to maintain their existing space, while just 5% anticipate that they will cut back on the amount of offices they occupy.
These predictions are delivered with some authority. Local control over property decisions is relatively high among Glasgow occupiers compared with other comparable cities.
More than 54% of companies surveyed exercise control over property decisions, another 11% are involved jointly with regional or national headquarters in taking such decisions. Just under a third (31%) of decisions are taken on a national level and 4% on a purely regional level.
Awareness of the role of property professionals in this process is high. When asked, 68% of respondents could name at least one property consultancy. The pattern of awareness is less polarised than in other cities surveyed by EG/APR. Many firms were mentioned only once and no single firm dominated awareness to the same extent as in other surveys.
