Glasgow city centre’s economic rebirth would be accelerated by fast-tracking and increasing high-end office developments, a property expert believes.
Lawyer Clare Wilson, a Partner in the Commercial Property team at city legal firm Lindsays, says building owners are in a prime position to capitalise on firms keen to secure space.
Demand for modern office space continues to outstrip supply, with the lawyer warning that potential tenants are increasingly unwilling to compromise on standards.
Many tenants are also seeking “green clauses” in leases, which set expectations around reducing the environmental impact of buildings.
Ms Wilson said: “Discussions we are actively having with clients continue to highlight considerable demand for high-end office space in Glasgow city centre. The issue is that there simply is not enough of it at the right specification.
“Businesses want spaces which provide a modern working environment, with strong energy credentials and sustainability standards. Finding that right now is a challenge.
“While work is underway on a number of office developments, there is still significant demand to tap into. Accelerating these projects could bring more workers into the city centre, bringing substantial economic benefits for the area.
“As building owners look to repurpose city centre properties – particularly vacant upper floors – those prepared to make the necessary investment to create office space of high specification could reap considerable benefits.”
According to data shared by the Chartered Institute of Personnel and Development (CIPD), almost a third (30%) of large UK employers are planning to increase the number of days that employees must work in the office this year.
With the continued shift in working patterns following the work-from-home boom triggered by the first coronavirus lockdown five years ago, Ms Wilson says that those who can secure relevant redevelopment permissions and move swiftly to create new office space in existing buildings could win financially.
It is a move which would fit in with Glasgow City Council’s wider regeneration vision to attract more people into the area to live, work and visit, giving people more reasons to be there.
“The key point is that to meet high-end demand, developments must be of the right quality,” added Ms Wilson, who has advised on a number of high-profile office leases.
“Our clients are increasingly clear that they are not willing to compromise on their expectations, whether they be around workforce wellbeing or sustainability. Many are waiting for the right space rather than lowering their requirements.
“Landlords making substantial investments in order to ensure buildings maximise their green credentials are among those most likely to benefit from the greatest returns.
“A growing city centre workforce benefits businesses of all kinds and strengthens the wider economy.”
