Glasgow's capacity crush is good news for Strathclyde Business Park

Given the very quiet time experienced by Glasgow City Centre in the last few years, no one could have predicted the sudden upturn in the occupational market during 2005. Nearly 12 months ago, the talk of the steamie would have been the fact that Glasgow had over half a million sq ft of Grade A stock sitting available with the next major occupier coming into the city being able to write their own terms!

At the beginning of 2005, this may well have been the case – however there had been a complete turnaround by the third and fourth quarters of the calendar year. 2005 was the year that witnessed Glasgow take-off with major letting activity, including multi national occupiers such as Dell, O2, Royal Bank of Scotland and W S Atkins. For further good measure the Scottish Ministers continued their support of the office sector in the last few years by taking well over 100,000 sq ft in the City.

“The end result of this letting activity now means that developers are scrambling about for the next major developer project,” said Jonathan McManus, associate at leading commercial property consultancy GVA Grimley.

“Only the recently completed development that is Aurora, on Bothwell Street, is offering the right product for the next large occupier looking to come into the city centre. Others are, of course, online with 1 George Square and 110 St Vincent Street now being progressed to provide another well over 200,000 sq ft and further progress expected on sites such as the old Franborough House.

“However, given that it may well be the case the Aurora provides the only real option to large occupiers for the next year or so – until the completion of 110 St Vincent Street – occupiers may be forced into looking at the real alternatives outwith the city boundaries and given that they will be expecting a high standard of office accommodation prime opportunity sits with Strathclyde Business Park, Bellshill.

“Strathclyde Business Park has been providing the top quality office accommodation expected by corporate occupiers for the last 15 years. Although occupiers accept that they are willing to be relocated outwith the city centre, they do not want to compromise on the specification and mature working environment that only Strathclyde Business Park can offer them.”

The days of out of town developments being viewed as a second thought for potential occupiers are now gone, and Strathclyde Business Park is now able to regard Glasgow as an equal when it comes to attracting tenants due to its high quality accommodation and amenities.

According to Audrey Dobson, Director at DTZ Debenham Tie Leung, it is becoming ever more increasingly evident from feedback from large occupiers that the majority of their costs are being allocated to issues in relation to staff retention with property costs becoming a secondary factor.

She said: “With the ongoing pressure on the city's current Grade A office supply, Strathclyde Business Park can offer the maturity of environment that will assist with staff retention. Amenities for staff at the park have progressed in recent years, with workers able to take advantage of the Hilton Hotel onsite, as well as restaurant facilities at the Bar Grill, a crèche, a supermarket, etc.

“The ever increasing success of the park is also down to flexibility that can be offered to those smaller occupiers who are looking for high quality office space with the opportunity of expansion. It is very unusual that a business park of the calibre of Strathclyde Business Park can offer this degree of flexibility allowing tenants to sign on short-term leases.”

Strathclyde Business Park is able to deliver a new build in less than 15 months – something that simply cannot be provided in the city centre – and it also has the capacity to expand in the future, unlike the heavily development centre of Glasgow.

And Mark Dornan of Colliers CRE believes other potential occupiers are on the brink of choosing the Park ahead of central Glasgow.

He said: “It would not come as any major surprise if over the next 12 to 18 months a number of occupiers decide that Strathclyde Business Park is a real alternative to the city centre and they can benefit for a mature environment with Grade A specification premises at a rental rate of which will be several pounds per sq ft less expensive than prime spots in the city centre”.


Notes to Editors:

Strathclyde Business Park, a joint venture between HF Developments and AWG Property Limited, is well established as one of Scotland's most successful business locations. Situated in 155 acres of countryside near Bellshill, Lanarkshire, Strathclyde Business Park is a sympathetic development of over 1.3 million square feet of business and lifestyle space.

As a Central Belt location, it is second to none. Located just off the A725, it is perfectly positioned between the M74 and M8. Within 30 minutes of Glasgow and Edinburgh and their airports, and an hour from Stirling and Perth, access couldn't be simpler.