Leading commercial property firm, CBRE, has said the end of business rates relief on empty offices will lower rents in some locations.

The forecast comes as the company published its review for the first half of 2013.

The report showed that strong demand had been found notably in Aberdeen as firms in the oil and gas industries expanded their staff numbers.

In prime locations, rents are expected to increase from its current level of £31.50 per square foot, while more speculative office developments will be found in the latter half of the year.


CBRE said Glasgow will see three of these developments in Queen Street, West Regent Street and St Vincent Plaza, which are due for completion from late 2014.

Prime rents remained in Clydeside, due to the reduced amount of quality space available. There is still a demand from local companies, as well as the outsourcing sector and inward investors, but with new office developments almost completed, landlords are hoping to secure tenants for the properties.

The pressure to do so is intensified by the rising cost of continuing to keep offices lying empty.

A change introduced by the Scottish Government in April means business rates relief on empty offices has decreased from 50% to 10%, therefore making it more expensive for landlords unable to find tenants.

Audrey Dobson, of CBRE's Glasgow office, said: "Against a backdrop of improving occupier demand developers are now investing again in the city."

(JP/CD)