Glasgow recorded its strongest first half for office lettings since 2018 after a surge in public sector deals, with year‑to‑date take‑up reaching 309,600 sq ft, a rise of 18% on the same period last year, according to the latest market figures from CBRE.
Large letting underpins quarterly momentum
The second quarter proved especially active. Take‑up in Q2 climbed 58% year‑on‑year to 169,100 sq ft, the city’s best quarterly total for more than a year. A single transaction — the Home Office’s letting of 80,600 sq ft of refurbished space at 200 Broomielaw — was among the largest recorded in the UK’s regional office markets during the quarter and materially supported the uplift in activity.
“Glasgow’s office market is showing real momentum. The Home Office’s acquisition of 200 Broomielaw was a significant contributor, but activity has been broad‑based, with demand also coming from the business services and professional sectors,” said Sarah Hagen, director and head of office agency, Glasgow, at CBRE.
Over the past 12 months, the public sector accounted for the largest share of Glasgow take‑up at 28%, followed by business services at 17%. The data underline a shift in occupier mix in a city where, until recently, private sector demand had been the principal engine of lettings.
Tight supply and limited Grade A stock
Supply constraints are a key theme. Availability in Glasgow fell by 3% over the quarter to just under 2 million sq ft, which CBRE notes is around 19% below the five‑year average. Crucially, only 18% of that available space is Grade A. The consultancy highlights that less than 2% of the city’s office stock qualifies as best‑in‑class available for immediate occupation, leaving Lucent as the only prime building offering instant move‑in capacity.
There has been no completion of new office schemes in Glasgow so far this year, and only one development — a 91,100 sq ft scheme at 45 Waterloo Street — is currently under construction. Those factors suggest upward pressure on rentals for high‑quality space if demand endures.
Contrasting picture across Scotland and the regions
Edinburgh also proved resilient, albeit to a lesser degree. Year‑to‑date take‑up there reached 237,000 sq ft, up 2% on H1 2025, and was led by a 21,900 sq ft letting at Saltire Court on Castle Terrace. Together, the two Scottish centres have outperformed the wider regional market.
By contrast, CBRE’s national regional office figures show a softer picture outside the Scottish cities. National regional take‑up fell 15% quarter‑on‑quarter, leaving H1 volumes at 2.2 million sq ft, which is 7% below the same period in 2025. CBRE links the relative weakness to constrained supply and scarce pre‑letting activity across many regional markets.
Implications for occupiers, landlords and the labour market
The immediate consequence of tight availability — and particularly a shortage of Grade A space — will be greater negotiating leverage for owners of high‑quality offices in Glasgow. That typically translates into rising headline rents for prime stock and tougher terms for occupiers seeking modern accommodation. For occupiers, increased rental costs can compress operating margins or force trade‑offs between location and space quality.
From an employment and local economy perspective, the Home Office move demonstrates how public sector demand can stabilise office markets and support related jobs such as facilities management, professional services and local retail. However, the lack of fresh completions means developers will need greater confidence about sustained occupier demand before committing to new speculative schemes — a gap that could slow construction jobs and supply chain work if landlords remain cautious.
- Glasgow H1 take‑up: 309,600 sq ft (+18% year‑on‑year)
- Q2 Glasgow take‑up: 169,100 sq ft (+58% year‑on‑year)
- Edinburgh H1 take‑up: 237,000 sq ft (+2% year‑on‑year)
| Market | H1 take‑up | Change vs H1 2025 |
|---|---|---|
| Glasgow | 309,600 sq ft | +18% |
| Edinburgh | 237,000 sq ft | +2% |
| Regional UK (total) | 2.2m sq ft | -7% |
For corporate occupiers and public bodies alike, the current environment raises the prospect of paying a premium for immediate occupation or engaging in longer‑term pre‑lets to secure high‑quality space. For policymakers and city planners, the lesson is familiar: without a steady pipeline of new Grade A development, prime office rents will be driven by scarcity rather than by growth in underlying business fundamentals.
CBRE’s figures underline a cautious optimism for Scotland’s largest office markets — activity is visible and demand is tangible — but the durability of the recovery will depend on whether supply can respond to shifting occupier needs without risking over‑development should demand soften.
