Glasgow and Edinburgh have both seen more than 80 per cent growth in office leasing activity in the past year. A comparison of Scotland’s two major cities to other major cities on the continent at a recent JLL Research Seminar revealed that leasing activity in Glasgow increased by more than 120 per cent between July 2013 and June 2014, in comparison to the same period from 2012-2013. The increase in leasing activity placed Glasgow at the top of the list of forty comparable European cities. Edinburgh is fourth in the list with an increase in activity of around 80 per cent. The office markets of Edinburgh and Glasgow are expected to see continued high levels of occupier demand, an increase in investment activity and a strong performance from business parks. However, Edinburgh’s weakness is a lack of scale, and Glasgow’s is flat population growth; and though leasing markets in both cities are showing very strong recovery, vacancy rates are falling and Grade A space remains scarce. (more…)

A new 68,000 sq ft speculative office scheme has been announced for Slough Trading Estate, arguably the most famous trading estate in the country; home to Ricky Gervais’ ‘the Office’. Although Slough began life as an industrial trading estate, it now accommodates  numerous corporate offices, and is one of the UK’s most popular headquarter locations for multinational companies, including Mars, Stanley Black and Decker, O2, and LG. The latest development forms part of the ongoing redevelopment of the Trading Estate to ensure it continues to remain a draw for business. The new site, at 234 Bath Road has already secured planning permission and is due to commence in November with completion set for Spring 2016. According to developer SEGRO the offices will feature large floorplates offering grade A office accommodation ranging in size from 22,000 sq ft – 68,000 sq ft, which can be let to a single company or multiple occupiers. (more…)

Flexible working initiatives such as hot-desking and home working have done little to dampen demand for the right office space, finds Cluttons in its latest London property outlook guide, which reveals very few areas of central London are now able to offer good office space for less than £40/sq ft. Echoing research by JLL earlier this week Cluttons reports that for the third quarter of this year current office letting activity was 17 per cent above the long-term average with more than almost 9m sq ft already acquired this year. Occupiers are showing a taste for larger offices, with a total of 21 transactions so far this year measuring upwards of 50,000 sq ft, accounting for a quarter of the space acquired. This is further eroding the supply pipeline, and is leading areas such as Aldgate and Whitechapel, Bethnal Green in the east, and Vauxhall in the south, to emerge as the next peripheral hotspots for those requiring offices on a more affordable basis.