The Department for Work & Pensions is looking for between 80,000 square feet and 100,000 square feet of offices in Glasgow.
Cushman & Wakefield has launched the hunt, on behalf of an undisclosed client, for opportunities in Glasgow city centre and on the periphery for existing buildings or prelet and development opportunities.
The timing for the move is 2027 and it is looking for leaseholds on buildings with an Energy Performance Certificate A and B.
The DWP has buildings all over the UK. In Glasgow, it is in Northgate, Block 4 at 96 Milton Street.
Singaporean investor Elite Partners Capital bought Northgate in 2018 as part of a £282.15 million deal to buy Telereal Trillium’s Hayhill Portfolio, which comprised 98 regional offices let to the Department for Work and Pensions. Lloyds financed the deal with a £177 million loan.
Grant Lonsdale, director of market analytics at CoStar UK, said: “Although Glasgow has one of the UK’s highest office vacancy rates, the city has only a handful of options that suit the government’s floorspace and energy efficiency needs.
“Requirements of this size have been thin on the ground lately, while commitments by the Student Loans Company and Scottish Qualifications Authority have been the only new lettings larger than 75,000 square feet signed in the city during the past four years.”
Buildings that may be considered include: 368 Alexandra Parade at CityPark, 95 Bothwell Street, 45-67 Queen Street, The Bond, 123 St Vincent Street, 120 Bothwell Street, 200 Broomielaw, Carrick Square and The Grid at 33 Cadogan Street, Washington Exchange, and 2 Atlantic Quay where Lloyds Bank has a break option in 2026.
Most would need work to meet the EPC requirement, however, and those that do not are either still not built or may be too expensive.