IN TRANSACTIONS which may signal new and potentially favourable directions in the office market in Glasgow, DM Hall has successfully let an entire townhouse in a prime location in what is seen as a remarkable time in the current environment.
All three floors of 4 Newton Place, an elegant, tree-lined street off the city’s sought-after Park district, have been let within six months to quality tenants at satisfactory rents after a flood of enquiries and stiff competition.
Claire Hutton, Associate at DM Hall, one of Scotland’s leading firms of Chartered Surveyors, said the impressive interest in and speed of the letting indicated that demand for office space was not as quiescent as popularly thought.
The individual floors of the newly-carpeted and painted building, which is close to the city centre’s shops and restaurants, have been taken by award-winning media agency Shaka Social; residential agency Rosevale Letting; and specialist advice firm Hawthorn Tax.
Ms Hutton said: “Take-up of space remains low in Glasgow compared to pre-Covid levels, but premium space is still in demand and there is a will to refurbish and upgrade to meet expectations.
“This was certainly the case with 4 Newton Place, which was offered in pristine condition and has good transport links and on-street parking. It is also close to the University and lots of new bars are opening close by.
“The fact is that SMEs with around 10 staff struggle to find suitable offices. They want smaller spaces of between 1,000 and 2,000 sq.ft., which can be hard to find, so the townhouse was the answer for these tenants. Flexible terms added appeal – leases are three, compared to five years.”
Ms Hutton also said that there was encouraging demand for smaller retail units, despite the current conception that the sector is struggling, and also from businesses born in Covid which now want a commercial or retail unit rather than continuing to use spare rooms in homes.
She said Industrial stock is booming and is going quickly, with rents as high as ever for warehouses, sheds, ironworks, and garages, with many going to a closing date after a short period of marketing.