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The coronavirus pandemic has set the agenda for commercial property in Scotland, with logistics sites rising in value as deliveries play a greater role in business and consumers’ lives.
The article states that the workplace health program is expected to rise in demand as vaccine programs advance and people return to work on a more permanent basis.
Stephen Lewis, managing director of HFD Property Group, the business behind what is supposed to be Glasgow’s largest single office on Bothwell Lane, clarified the office climate would be better when the city reopens.
“We’ve been very fortunate and pretty resilient,” Outside of the city where the majority of our offices are situated, the organization has held up pretty well due to the versatility of our facilities.
“The demand for flexibility has been there for some time, so fortunately its impact on our out-of-town business has been relatively minimal, and if you look at the whole year, our occupancy levels are probably a little bit higher at the end of the year than they were at the beginning of the year, which is a very fortunate position.”
Business center sold for approximately £1.9 million.
The CEO reported that overall occupancy for the city center is statistically under average.
According to the CEO, the company expects demand to fall between 10%-20% in the short term.
“You have to put that in the context that Covid has accelerated the trends that were already there,” he said.
177 Bothwell Lane,
“Home-based work will stay, but not five days a week. For the majority, it is going to be the minority (of the time), and it was already there, too, so the pattern has just continued.
“To combat the slightly declining demand, growth in demand will be powered by growth in quality.
“We’re definitely seeing demand for space coming back in line with the trends that were there before Covid, whether it’s sustainability and the push toward net zero, wellness, and now the Covid element of wellness, and flexibility in terms of growth and lease length.”.
First glimpse at the offices inside the biggest Glasgow office building.
Mr. Lewis predicted that the patterns he’s observed will continue to intensify .
People will take “some space” but will “take better space” and that’s a positive thing.
John Rae, director of Knight Frank.
John Rae, head of Knight Frank’s Glasgow office, also said the company has been resilient throughout the pandemic, citing development in the field of logistics and the boost that the vaccine would bring to return offices.
“We’ve done well, we’ve been involved in some big deals, but not a huge number of deals,” he explained.
The industrial sector is on fire, and it is easy to see why. The way we shop today heavily depends on organizations like DPD and Amazon, so it’s understandable why industrial production has become so common.
“But when something becomes popular, it becomes expensive, and it’s hard now for people to get what they want in the industrial sector in terms of warehouse prices.”.
Running track to be an oasis for downtown workers.
He said, “If it gets too expensive and people can’t get a return there, they’re going to have to look elsewhere.”
CBRE expects investment and turnover in the office sector to rebound in 2021, while for the logistics sector the pandemic has proved its vital position in the transportation of food and goods. This restructuring would require additional modern warehouse space in the UK and in regards to Scotland, financing should be possible for speculative projects.
David Reid, of CBRE Scotland, told the audience that there has been great interest in 2020, but there is a shortage of available warehouses.
“We are working with a number of developers to address this gap in supply,”