Property license agreements symptom of revival
In fact, nine cities outside London have reported the highest take-up for commercial property in half a decade, and, although a number of these deals are thought to be short-term arrangements such as property license agreements, there is real optimism that the figures might indicate a period of sustained growth.
“Property license agreements can sometimes be seen as businesses testing the water, but the more businesses there are testing the water, the higher the probability the water is good,” said a spokesperson.
“Start-ups require flexibility, and many of those trying license agreements will hope for the kind of success that leads to expansion, that’s why this kind of arrangement can work so well.”
Construction is reporting similar trends, with many cities reporting a boom in the development of new premises. Glasgow is just one of the many cities where this is in evidence.
“As occupier confidence increases and take-up of Grade A space gathers pace again, new speculative development is underway again in Glasgow,” said a spokesperson from property consultant GVA James Bar.
“For instance, Mountgrange and M&G are building 143,000 sq ft of new Grade A at 1 West Regent Street and construction work is also underway at sites owned by Abstract and BAM. It is also encouraging to see out-of-town take-up rise above the five-year quarterly average with 151,000 sq ft in Edinburgh and 55,845 in Glasgow.”
And with demand reportedly on the increase for “agile” workspaces, there is every indication that property license agreements could be one of the first signs of meaningful economic revival.General