Office space shortage in Scotland
A severe shortage of high quality office space is likely to hold back commercial development in Scotland according to a survey by property company GVA.
Glasgow and Edinburgh combined account for 42 per cent of all office space rented out in the “regional” market during the three months to 30 June as demand outstripped supply. There is a lack of high-end office space in both Edinburgh and Glasgow is expected to run out within the next 18-24 months.
The problem is being exacerbated by a lack of speculative building projects bringing new stock onto the market.
The problem is also reflected in the US where centres like Austin and New York are also experiencing shortage and pushing up rental prices. Like Glasgow and Scotland the problem again seems partly down to a reluctance by banks to fund new construction projects.