Mixed-use schemes key to unlocking supply of Glasgow office, retail and leisure space
Private funding will be essential to meet Glasgow’s real estate demand across all sectors, with mixed-use determining how people will live, work and socialise, according to a new report.
Research by real estate specialists Savills revealed the city’s economic growth exceeded that of the UK as a whole over the past five years.
With both residential and commercial demand consolidating around the central core of the city, Savills said mixed-use schemes will be the key to unlocking supply of office, retail and leisure space in Scotland’s largest city.
Bruce Patrick, head of commercial and mixed use development across Scotland, said: “Glasgow benefitted from the Commonwealth Games, not just in terms of an improved public image and a new sense of confidence, but also in the form on considerable public investment in the city. This is set to continue under the City Region deal, which in turn is attracting private sector investment.
“There has been a surge in activity across almost every aspect of the city’s real estate, whether we are taking about infrastructure investment, housing demand or commercial and industrial activity.
“There are a number of strategic sites in the pipeline where developers and funders are seeing the benefit of combining multiple uses and cash flows in order to get projects out of the ground, thus creating vibrant places where people want to live and work.
“It is a hugely exciting time for Glasgow, and the building blocks are in place for Glasgow to reaffirm its position as Scotland’s powerhouse, competing with the ‘Northern Powerhouses’ including Leeds and Manchester. Residents, investors, funders, developers and planners needs to capitalise on this current spirit of positivity and play their part in driving the city forward.”
Savills research, entitled The Future of Glasgow’s Real Estate, identified four sites with the potential to become vibrant mixed use hotspots within the city: Partick & Partick Hill, Charing Cross, North George Sq/Merchant City, Merchant City.
Chris Stewart Group’s George Street Complex will provide student housing, hotel space, serviced apartments and office space around newly created public spaces. This combined with the new City of Glasgow College campus, the redevelopment of Queen Street station and redevelopment of Glasgow College of Building and Printing has the potential to provide a new lease of life for the heart of the city.
Bruce Patrick added: “The George Street Complex is just one example of creative thinking in the city. We are also seeing the University of Glasgow become a real catalyst for vibrant growth with ambitious plans which will transform the area around Patrick. Equally Charing Cross and Merchant City are places to watch.”