01/31/2023 | Press release | Distributed by Public on 01/31/2023 03:07
With a total of 80,000 sq ft new F&B space opening in the city centre and independent and national operators both active, there is reason to be optimistic about the sector in the year ahead, despite challenging trading conditions.
Here are our top seven predictions for Glasgow F&B in 2023:
1. Occupier demand will remain strong in 2023. Savills is presently tracking 15 unsatisfied F&B requirements for Glasgow city centre, typically requiring large properties of over 4,000 sq ft.
2. The bulk of transactions will take place in the second half of the year as occupiers look to ride out challenging trading conditions with pipeline projects.
3. A lack of availability on the most sought-after prime locations is expected to impact activity. Occupiers will choose to wait for the right site and be less inclined to compromise.
4. Glasgow has an outdated planning policy which still prohibits F&B uses on many key thoroughfares, which is stifling inward investment at a key time for the city. A review is ongoing and much needed changes hoped for to reflect changing consumer habits and the pressing need to embrace a mix of uses within our shopping areas.
5. Delays in obtaining new liquor licences in Glasgow will remain. Operators should plan this year for a seven-month turnaround from application, frustrating opening schedules.
6. Competition for the very best sites around Buchanan Street remains a feature and this could result in rents growing by 10 per cent by the end of 2023, subject to the trends above coming to fruition. Current prime F&B rents in Glasgow are £40 psf, which look cheap compared to Edinburgh, where they exceed £60 per sq ft.
7. The three fastest developing F&B districts in the city centre will be:
• George Square, where Flight Club open their social darts bar in summer 2023, adjacent to The Alchemist.
• St Enoch, where Level X has transformed the citys largest mall with a new 30,000 sq ft leisure experience, adjacent to a new restaurant quarter and aided by four new hotel openings outside the centre.
• Merchant City, which promises to dominate the growth of city living over the next five years, many of which will include F&B accommodation.