Investment into the Scottish commercial property market is seeing an uplift as the return to the office gets under way in earnest, according to Colliers.
The property firm said several deals had seen a “bidding war” take place.
Office properties that meet the changing nature of working patterns are attracting the most interest, it added.
These offer increased collaboration space, a flexible approach to desk layout and ample cycling, showering and parking facilities.
ESG and sustainability under scrutiny
Colliers said the ESG (environment, social and governance) and sustainability credentials of assets – those that target net-zero emissions, with low-density levels and that have potential for mixed-use – were under “considerable scrutiny” and “proving most popular”.
The firm pointed to the recent bidding war around its purchase last month of the Aurora building on Bothwell Street, Glasgow, from M&G, for European fund manager Forma Real Estate, as a sign of the long-term demand for offices.
The fully-let prime city centre property, originally built in 2006, covers around 174,000sq ft and is Forma’s first UK acquisition.
‘Attractive proposition’
As Scotland continues to navigate out of the pandemic, the successful vaccination programme has provided an “attractive proposition” for overseas investors who are encouraged by a return to near normality, Colliers said.
The firm highlighted a pick-up in inquiries from mainland Europe, the US and the Far East, in particular, as travel restrictions ease.
Meanwhile, Colliers called for “more clarity” from the Scottish Government to help businesses get staff back to the office in a “safe and consistent” way.
Investors are looking for office space that will encourage workers to return by offering them a flexible, attractive and safe environment.”
Patrick Ford, director, national capital markets, Colliers, added: “I would like to see our first minister being more prescriptive around a plan for getting people back to the office and working with businesses to make this as smooth a transition as we all adapt to the ‘new norm’.”
“Many corporates, such as financial services providers, have reaffirmed their commitment to the office.
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“Office space remains essential for many sectors, in particular those that are highly regulated with specific security needs.
“Much-needed clarity would allow for quicker decisions from both tenants and investors.
“There can’t be a ‘one-size-fits-all’ approach. Investors are looking for office space that will encourage workers to return by offering them a flexible, attractive and safe environment.”