Glasgow’s office space scarcity sends rents on second-hand stock spiralling

Rents for refurbished office space in Glasgow have leapt above those for new-build properties and a lack of new developments means that trend is set to continue, according to a new report.

Releasing its latest Glasgow Scottish Property Outlook, Savills notes that over the next three years, there is currently no new office development planned for the city centre. The study reveals that rents for refurbished office space have now exceeded that of new-builds by as much as £4.50 per square foot, as seen at Aurora, 120 Bothwell Street.

Out of the “big six” office markets (Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester), Glasgow and Edinburgh are the only cities that have seen a full refurbishment of an existing building secure rents in excess of those for a new-build development.

A view of Glasgow overlooking the River Clyde.

Already, prime headline rents for refurbished stock have reached £41.50 per sq ft in 2025, a 28 per cent increase over the past five years and Savills forecasts suggest that this could reach £48 per sq ft by the end of 2026, representing further growth of about 16 per cent. However, if a pre-let new build were to be secured this would have the potential to exceed £55 per sq ft over the next five years, the property advisor added.

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David Cobban, head of Savills Glasgow and director in the office agency team, said: “This significant increase in rents for refurbished office space in the city can be attributed to the ongoing lack of good quality stock.

“Glasgow currently has less than a year’s worth of prime supply, equating to a vacancy rate of just 2.7 per cent. This, coupled with the fact that there is practically zero development pipeline, means refurbishing existing buildings is currently the only way to fulfil occupier requirements.”

The firm said demand for suitable office space remained strong. Savills saw take-up in Glasgow reach 316,092 sq ft in the first three quarters of 2025, a 12 per cent increase on last year’s figure. The city recorded 101 transactions during this period, the highest number on record. Looking at the big six locations, while all markets performed relatively well with robust take-up of 2.7 million sq ft during the first three quarters of 2025, the Scottish cities continued to surpass expectations.

With a number of named requirements in the market at present, looking ahead to the closing months of 2025, Savills expects to see take-up surpass 500,000 sq ft by year end. This will see activity exceed the five-year annual average, reaching the highest total since 2021.

Clare Bailey, a director in the Savills research team, said: “There is no doubt that Glasgow’s office market is showing encouraging signs, with forecasted rents making a compelling case for both refurbished stock and new development. Other cities have already set the tone for rental growth - Bristol recently achieved a new headline rent of £50 per sq ft, while Leeds recorded a 15 per cent increase to £46 per sq ft last quarter.

“These benchmarks highlight the upward pressure on prime rents across key regional cities. For Glasgow to remain competitive, sustained momentum will depend on delivering high-quality, well-located space that meets evolving occupier expectations.”