Economic impact of 177 Bothwell Street office development valued at £2.8bn
The substantial, long-term contribution to the Scottish economy of HFD Property Group’s new office development at 177 Bothwell Street in Glasgow has been outlined in an independent report.
Carried out by economic and social research consultant EKOS, the economic impact research shows the new building will have a cumulative impact of more than £2.8 billion gross value added (GVA) over 25 years across Scotland.
It will contribute £1.8bn to Glasgow’s economy alone, with sustainability at its heart. The building is targeting an EPC rating of ‘A’ and BREEAM ‘Excellent’ standard – accreditations that demonstrate the energy efficiency and environmental benefits of the office development.
Once fully occupied, 177 Bothwell Street is expected to account for around £205 million GVA annually, based on average salaries. Construction work is estimated to have a one-off GVA contribution of £51m and the development is also expected to generate more than 800 person-year-equivalent jobs in the construction sector. The new building will cater for a workforce of around 3,500.
The report also outlines the building’s collective benefits for occupiers, workers and the wider economy, from an increased talent pool and opportunities for knowledge sharing, to lower transport costs and economies of scale. 177 Bothwell Street is also expected to help maintain and build on Glasgow’s reputation as a major centre for financial and professional services.
Stephen Lewis, managing director at HFD Property Group, said: “177 Bothwell Street’s impact spans much further and wider than the jobs created in the building’s construction and the employees working under its rooftop running track.
“Positive effects of the development will also spread throughout the local economy, from the likes of supplier contracts for IT and office equipment, to increased spend on the building’s extensive neighbouring amenities. While we are still in the early stages of the project, the positive impacts highlighted in this appraisal are a welcome indicator of its future contribution not only to Glasgow, but Scotland too.”
Providing around 313,000 sq. ft. of exceptional Grade A office space, 177 Bothwell Street is due to complete in Q2 2021 and will become Glasgow’s largest single office building. It is the second and final phase of HFD’s wider Bothwell Exchange development, following the delivery of 122 Waterloo Street for Morgan Stanley.
The building will boast several of the property industry’s most highly recognised accreditations, including becoming the first development in Scotland to achieve a ‘Platinum’ WiredScore certification, ensuring future occupiers will have the best connectivity available.
177 Bothwell Street will also feature a rooftop terrace and running track, 318 cycle spaces, electric vehicle charging points, and circadian lighting. Virgin Money has signed a long-term lease, while HFD Group’s serviced office business – Opus – will take more than 65,000 sq. ft. on the building’s ground, first and second floors.
David Duffy, Virgin Money chief executive, said: “We are extremely excited about what the next chapter looks like for Virgin Money in Scotland when we move our Glasgow Head Office into 177 Bothwell Street.
“We have a long and proud history in the city of Glasgow where Clydesdale Bank was founded in 1838. We’ve created so many positive memories in our current St Vincent Place Head Office which we relocated to in 1860 with just 50 staff and four porters. Having central heating back then was considered cutting edge; a far cry from the innovative design and structure and impressive environmental credentials that attracted us to the new Bothwell Street building.
“Alongside the environmental benefits, the new building will also provide a huge boost to the local Glasgow economy as well as the whole of Scotland. As we disrupt the banking status quo it‘s important that we continue to attract, recruit and retain the best talent for today and for the future from the surrounding communities and beyond.”
Stephen Lewis added: “This development is set to become a major part of Glasgow’s International Financial Services District, providing thriving businesses with the quality office space they need to attract and retain the best talent. It has been specifically designed with both staff wellbeing and sustainability at the heart of the plans. We continue to be encouraged by the strong level of interest, in addition to the pre-lets already secured, with 75% already let.”