• Transactions for space of 5,000 sq ft and over in Glasgow completed in H1 2022 is up year-on-year
• Occupier enquiries in Edinburgh hit a five-year high during the month of May
• Strong take up is expected in Q3 with several large deals currently under offer

The market outlook remains positive across the central belt of Scotland with occupiers reviewing and implementing their real estate strategies, according to new data from commercial property specialist JLL.

In Glasgow, there was 126,000 sq ft transacted in the city centre, an 11% increase on the same period last year, further boosting confidence in the city’s office market.

The number of deals of 5,000 sq ft and over in Glasgow also rose in the first half of the year compared to the same period in 2021, with the professional services sector being one of the most active.

In Edinburgh, there was a total take-up of approximately 97,000 sq ft, with just over 51,000 sq ft of this within the city centre. A significant number of lease renewals were also agreed – close to 200,000 sq ft in total – suggesting occupiers are continuing to assess their work-place strategies.

JLL reported the highest number of occupier viewings in Edinburgh during May of this year – the highest levels since 2017. Due to the increased demand reported by occupiers, a growth in the volume of deals is anticipated in the third quarter of this year for both cities.

There are undoubtedly wider economic headwinds for both markets to weather, however with clear trends towards higher quality, sustainable space, albeit with a reduced footprint, JLL sees the office market in Scotland’s central belt remaining healthy. In addition, JLL has reported evidence of occupiers continuing to be driven by lease events influencing their decision making.

JLL continues to track the average UK office occupancy levels, which recently demonstrated a peak in Q2 at 44% – an increase on levels seen in 2021.

Sara Dudgeon, Associate at JLL in Edinburgh, said: “The first half of 2022 has seen uptake in occupier activity, evidence of how robust the market is.

“Demand for Grade A office space has been particularly high in the capital with an increase in workers returning to the office. Many firms are taking more time to find the right space for their workforce as employee demands evolve and we’ll continue to work to support our clients to find and create the best spaces possible.”

Meg Beattie, Surveyor at JLL in Glasgow, said: “Positive take-up figures over the past six months is a strong indication of growing confidence in our market.

“It’s interesting to note that professional services firms are beginning to implement their long-term occupation strategies and returning to the market seeking solutions to their current and future needs.

“Although occupiers are tending to reduce their size requirement, most are focusing on better quality options.

“With a number of larger deals under offer, the outlook for the Glasgow office market is encouraging. We are optimistic that the Scottish office markets continue to remain robust.”