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Research Hotels Driving Real Estate Development in Glasgow The Hotels driving real estate development in Glasgow February 2020 2 | Hotels driving real estate development in Glasgow Welcome to Avison Young Glasgow population, growth, s Glasgow has undergone a remarkable transformation over the years. Once known as the “Workshop of the Empire” the city, as we know it today, is almost unrecognisable from its heavy industrial past and education and culture now boasts a thriving modern city centre, which embraces its connection to the River Clyde. These links can be evidenced in the growing developments Clyde Gateway area to rapidly develop and offer Grade A offices appearing along the waterfront including Pacific Quay, and industrial space within a short drive of the city centre. International Financial Services District and Glasgow Harbour. Construction of the £115million ‘Avenues’ programme will continue Glasgow’s modern, diverse economy has strengths in a variety in 2020, aiming to make the streetscape of the city centre greener, of sectors and sub-sectors with over 48,000 businesses (28% of more economically competitive and more attractive generally. Scottish companies) making the city their home. It is the UK’s third largest financial centre and ranks in the top 50 in the world. Some Glasgow is continuously investing in its extensive transport and 2023 185,000 of the biggest names in global business and finance, international technology infrastructure. The subway system has had a £300 million refurbishment and Queen Street railway station will Glasgow will be European Students from 140 countries leaders in precision medicine and pharmaceuticals, research 46% benefit from a £750 million improvement programme. The city #1 Capital of Sport services, engineering and an impressive range of global brands currently studying in the city call Glasgow home. Their presence endorses Glasgow’s status as a continues to keep pace with technological improvements and 15 QUALITY Glasgow has more of the working age kilometres of the new Gigabit City fibre is being installed. This will 2019 world-class business destination. green space per square mile population is educated to provide internet connectivity up to 100 times faster than the Glasgow named Cultural and The Glasgow office market continues to attract large occupiers. UK average. OF LIFE than any other UK city. degree level or above JP Morgan Chase’s recent acquisition of 272,800 sq ft in Argyle creative centre of the UK Street follows the Barclays deal in 2018, another significant boost to Glasgow has a clear vision for growth and regeneration Glasgow ranks among the Glasgow’s credentials as a major financial services employer. and is proving its credentials by attracting new inward investment to Scotland’s largest city. The best UK Cities for Quality FORE Partnership has started construction on the speculative pipeline of key development opportunities of life 95,000 sq ft Cadworks on Cadogan Street, which is set to provide highlighted in this map will ensure that the most sustainable, greenest workspace Glasgow has seen to Glasgow’s rejuvenation continues over date. With advanced cycling facilities and enhanced provision for the next decade to further enhance electric vehicle charging, this building will be leading the way in its growth and reputation as a the energy revolution that Scotland is embracing. world class city. The £1 billion Glasgow City deal includes investment in improved infrastructure and the extension of the M74 motorway has delivered joined up connectivity from north to south, enabling the RIVERSIDE MUSEUM UNIVERSITY OF GLASGOW RIVER CLYDE GLASGOW GALLERY OF MODERN ART #1 Map Development Future Glasgow’s music scene is GLASGOW SCIENCE CENTRE AND TOWER second to none, with over 130 3 music events held each week Glasgow is home to three of Glasgow Scotland’s largest and most prestigious universities and three world-class colleges 620,000 Cities Evolving City of Glasgow population s potential beyond 2022. beyond potential continue to influence real estate evolution in Glasgow and consider the future growth growth future the consider and Glasgow in evolution estate real influence to continue With a further 2,200 plus bedrooms set to open by 2022, we look at how hotels will will hotels how at look we 2022, by open to set bedrooms plus 2,200 further a With of the Glasgow Development Map Development Glasgow the of Please get in touch if you would like to receive a copy copy a receive to like would you if touch in get Please Glasgow Regional Contacts (SEC). Campus Event Scottish Alison Taylor the at and centre city the in opened rooms apart-hotel and hotel 954 alone, 2018 In Glasgow economy and Infrastructure Principal and Managing Director for Glasgow [email protected] 0141 305 6381 hotels. new for requirements and demand accommodation further drive Paul Broad Director - Business Space will developments use mixed new These Map. Development Glasgow Young’s Avison in [email protected] 0141 305 6382 Douglas Wood highlighted city, the across zones innovation and development emerging of number a are Director – Investment £1.13 300km There Clyde. River the of sides south and north the both along west the to and beyond, [email protected] of full fibre digital Infrastructure BILLION 200+ 0141 305 6316 29 across the city £300 Flights daily from Glasgow 1.2 #1 and City Merchant in east the to expand; to room ample has it that in fortunate is Glasgow in infrastructure development Chris Miller MILLION Airport. 324 weekly flights to/ MILLION 84% investment delivered by the MILLION Glasgow is one of the UK’s Associate – Planning from London refurbishment of the Glasgow Subway. [email protected] Passengers per year pass Glasgow City Deal by 2035 premier retail centres ranked first of jobs in Glasgow people live within It is the only true Underground railway 0141 305 6335 70% through Central Station place after London’s West End evolution. city’s the of element core a now are in the service sector a 45 minute commute In the UK outside London of the population Stephen Robertson Associate – Land and Development are of working age are hotels assets, “alternative” fund to difficult Once investors. and operators developers, [email protected] 0141 305 6311 growth and improving market performance, the city has become a hotspot for hotel hotel for hotspot a become has city the performance, market improving and growth As a result, the hotel and tourism sector is buoyant; following a number of years of of years of number a following buoyant; is sector tourism and hotel the result, a As sector; they are important economically and as part of the evolving city place-making. city evolving the of part as and economically important are they sector; growth are making that happen. Hotels have become a core part of the real estate estate real the of part core a become have Hotels happen. that making are growth SSE HYDRO and change of pace current the but destination, global truly a being in Manchester SEC ARMADILLO AUDITORIUM To an extent, Glasgow has been playing catch-up in recent years with Edinburgh and and Edinburgh with years recent in catch-up playing been has Glasgow extent, an To GLASGOW CITY CHAMBERS GLASGOW CATHEDRAL CLYDE ARCH growth. economic districts, emerging tech and creative sectors are driving local skills and employment, and and employment, and skills local driving are sectors creative and tech emerging districts, FINNIESTON CRANE innovation university-led whilst work, and live to place a as centre city the enhancing is avisonyoung.co.uk realm public and infrastructure in Investment city. neutral carbon first UK’s the become RIVER CLYDE #evolvingcities Glasgow is leading the way on the environment with ambitions and work underway to to underway work and ambitions with environment the on way the leading is Glasgow Avison Young Sutherland House, 149 St Vincent Street, Glasgow G2 5NW This report has been prepared by Avison Young for general information purposes only. Whilst Avison Young endeavours to ensure that the information in this report is correct it does not warrant completeness or accuracy. You should not rely on it without seeking professional advice. Avison Young assumes no responsibility for errors or omissions in this publication or other documents which are referenced by or linked to this report. To the maximum extent permitted by law and without limitation Avison Young excludes all representations, warranties and conditions relating to this report and the use of this report. All intellectual property rights are reserved and prior written permission is city. thinking forward modern, a as itself required from Avison Young to reproduce material contained in this report. Avison Young is the trading name of GVA Grimley Limited. ©Avison Young 2019. reflects that of the wider Glasgow economy as it establishes establishes it as economy Glasgow wider the of that reflects economic growth. The current evolution of the hotel sector sector hotel the of evolution current The growth. economic is raising the profile of the city and resulting in strong strong in resulting and city the of profile the raising is Glasgow is undergoing a significant transformation that that transformation significant a undergoing is Glasgow Background 3 Hotels driving real estate development in Glasgow | | Glasgow in development estate real driving Hotels 4 | Hotels driving real estate development in Glasgow Diverse Demand Glasgow is a modern and diverse city - socially, culturally and economically. That includes a large COMMERCIAL commercial office sector (with strength in financial and professional services), university-led research Occupational demand for Grade A offices is buoyant and is likely to remain so for at and innovation activities, and creative sector. There is least the next three years. This has been driven by the “regionalisation” of operations a large and well-established conference and events across a number of sectors due to both rents and high cost of living in London.
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