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Glasgow office build to plug supply shortfall after securing go-ahead

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May 15 2017

Glasgow office build to plug supply shortfall after securing go-ahead
Asset management specialists M&G Real Estate have won consent to proceed with a £100m speculative office development at 33 Cadogan Street, Glasgow.

Corunna House would be demolished and replaced by a 12 storey BREEAM ‘Excellent’ build conceived by Cooper Cromar, delivering 275,000sq/ft of Grade A office space, in addition to a ground floor retail unit and under floor parking.

Lynn Smith, director - development management at M&G Real Estate, said: “There is a clear occupier appetite for high quality office space in Glasgow and a lack of supply in the city’s office market, which makes it a prime location for investment. We are confident that 33 Cadogan Street will attract a strong line-up of tenants, bringing new jobs to the city, and we are looking forward to beginning this exciting project.”

Analysis by commercial lettings agent JLL found office supply fell below trend to just 8.22% over the first quarter, with just two new build Grade A developments with limited space on the market – with no speculative developments presently underway.

Work on the new building isn’t expected to get underway until the second quarter of 2018 however.

17 Comments

Charlie_
#1 Posted by Charlie_ on 15 May 2017 at 15:59 PM
The same patter we heard from the developers of consented office developments at atlantic square, the opposite side of cardogan street, refrew street, bothwell street, Central quay, skypark etc. Low supply, high demand- we'll be on site soon!
MoFloBro
#2 Posted by MoFloBro on 16 May 2017 at 09:18 AM
Despite it's flaws I hope this development goes ahead. I'm not convinced though by the 'lack of supply' argument. It looks like JP Morgan could be hotfooting it to Dublin, leaving behind a massive empty building on Waterloo Street. With most of the Broomielaw still lying derelict the much-trumpeted IFSD is looking like a damp squib.
ron
#3 Posted by ron on 16 May 2017 at 09:46 AM
Not convinced by the lack of supply argument either.

Scotland is not the highest taxed place in the UK.

Is it any wonder that large companies find other places to do business more attractive.

The current Scottish Government have a lot to answer for.
Graeme McCormick
#4 Posted by Graeme McCormick on 16 May 2017 at 11:54 AM
ron, Scotland is not the highest taxed place in the UK. It is actually the lowest taxed for both commercial and individual tax payers over the full list of taxes, and property prices are significantly lower.
ron
#5 Posted by ron on 16 May 2017 at 12:59 PM
I think you will find that the top rate of tax for income is higher in Scotland than anywhere else in the UK

Big companies (you know the type that occupy big office blocks) need to attract top staff.

if they cant do that then they will go elsewhere.

The Scottish Government is making Scotland less attractive place to do business.
Chris
#6 Posted by Chris on 16 May 2017 at 13:38 PM
The elephant in the room is the independence movement.

No one wants to touch a politically-charged region until a conclusion is reached, whatever way it goes.
Doop
#7 Posted by Doop on 16 May 2017 at 13:46 PM
Ron, I think you'll find it's exactly the same. The Scottish Government just didn't pass on the two-faced bribe of increasing the threshold at which you start to pay 40%, whilst telling everyone how austerity in necessary. And I assume you mean the Higher rate of 40%, as the top rate of 45% starts at 150k throughout the UK. I doubt it has impacted Glasgow office demand overly. Not outside of Tory fever-dreams, anyway.

And JPM only employ software developers in Glasgow, not bankers, so there is no reason for the jobs to be directly impacted by Brexit. There are no rules that your software needs to be written within the EU. I believe they have just signed a lease to take an extra floor at their secondary (Bothwell St) office to accommodate growth.
Matt
#8 Posted by Matt on 16 May 2017 at 13:52 PM
#6 Nail, hit, head...
MoFloBro
#9 Posted by MoFloBro on 16 May 2017 at 14:08 PM
The reasons for the IFSD struggling to take root goes all the way back to the 2008 collapse and has diddly squat to do with independence or brexit. If anything independence within the EU would offer a huge attraction to businesses looking to relocate from Brexit.
Pete
#10 Posted by Pete on 16 May 2017 at 15:05 PM
@ #6 The Independence movement is the reason that this project will stall?!? What about the massive cluster f@$ that is hard brexit? Our economy will fall off a cliff edge once brexit is concluded. We will be a small isolated island nation with no trade deals, and the tories at the helm. This is the reason that our economy is stalling, that this project and many other projects will stall/have already stalled, not the Independence movement, whose aim is for Scotland to remain in Europe (which Scotland voted for in June 2016).
Chris
#11 Posted by Chris on 16 May 2017 at 15:15 PM
#10 - Yet the pace of development in Manchester et al continues regardless.

Don't get me wrong, I'm not necessarily against independence, but that doesn't ignore the fact that we're stuck in a weird limbo right now that is a major turnoff for investors.
Lewis
#12 Posted by Lewis on 16 May 2017 at 15:30 PM
JP Morgan are not relocating their Glasgow office. It's only London at risk of losing the jobs. As another poster said, JP Morgan have just taken more space in Glasgow.
Fush and Chups
#13 Posted by Fush and Chups on 16 May 2017 at 16:26 PM
Brexit is the cause for concern, not some possibility of a second independence referendum.
I am sitting on the fence regards the pros and cons of independence, although it strikes me that an independent Scotland, within the EU, would be an ideal place for a lot of these London financial relocations. Well established banking centres in Edinburgh and Glasgow, same language, just up the road. Brexit could well be an opportunity for Scotland, if it stays within the EU.

Back to the topic at hand, and this proposal is welcomed. It is clear that there is a dearth of Grade A offices proposals, so this is badly needed. Bit formulaic, but an improvement on existing.
Trombe Wall
#14 Posted by Trombe Wall on 17 May 2017 at 09:18 AM
On the architecture; strong form, if delivered with rigour could be very pleasant. Plinth and set back top floor are fairly standard devices, but inoffensive. Presumably the development wont offend too many, as the architecture is pretty 'safe'?
George
#15 Posted by George on 17 May 2017 at 16:09 PM
Whatever your views on Independence, no-one can argue that it is this possibility rather than Brexit that is making Scotland and Glasgow less attractive places to invest. If it was Brexit then how come London and Manchester are still booming and the economy growing whilst Scotland actually declined in the last quarter of 2016. Its time it was put off for a generation as promised so that the Scottish economy can get back on its feet again.
Fush and Chups
#16 Posted by Fush and Chups on 17 May 2017 at 17:59 PM
#15 I disagree entirely. Of course you can argue that Brexit is the threat. All of these banks looking to relocate to European cities are not doing so because of the possibility of an independence referendum. The reason they are doing so is because Brexit IS a reality. I have no confidence at all that the government will secure any kind of meaningful deal with Europe, and evidently neither do the banks.

London is London. All money from the UK flows there. This country is still run like we are an Empire and everything must flow through the capital, yes?

Manchester is the chosen "Northern Powerhouse". Have a look at other cities in the north of England and how they complain that Manchester is the one getting all of the investment. Mr Osborne and his pet project. Still tokenism if you ask me.

In any case, this is all very political and off topic. Perhaps we should stick to discussing the matter at hand?
Craig
#17 Posted by Craig on 18 May 2017 at 01:51 AM
Great another boring box to capture no ones attention and make zero impact on our skyline.

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