Office shortage leads to more off-market deals in Glasgow

Office agents and organisations in Glasgow are increasingly turning to 'off-market' or unadvertised deals due to the lack of prime office space in the city, according to DTZ. The property advisor announced on Thursday it had brokered a number of off-market deals at 1 Atlantic Quay on behalf of the owner BAE Systems.

BAE Systems has a head lease with 9-years remaining on 12,000 m² at 1 Atlantic Quay. The group was advised by DTZ on the refurbishment of the building's 2,000 m² third floor after global financial services firm Morgan Stanley relocated its remaining staff from Atlantic Quay to Cumbernauld.

DTZ's office agency team structured an off-market deal with existing first floor occupier, Mott Macdonald, to take the additional space at £19 per square feet (about EUR 190 per m2). At the same time, Mott MacDonald surrendered 700 m² of its first floor suite to another existing occupier MacTaggart and Mikel.

Paul Broad, senior surveyor, DTZ said: 'All the deals at 1 Atlantic Quay were concluded off-market and are prime examples of the way deals are now being done because of the lack Grade A stock and larger floor plates. This further demonstrates the shortage and demand for Grade A accommodation. We are increasingly having to put together innovative deals to accommodate the shortage and with Curprum at Cadogan Square the only major development due to be concluded in 2008, we expect the situation to continue.'