‘Flight to quality’ - How legal sector demands are driving Glasgow’s property market

Property experts said demand for new, “high-end, sustainable office space” accounted for 35 per cent of legal sector lettings in 2024, the highest proportion since 2019 and significantly higher than the five-year long-term average of 19 per cent.

Examining the “big six” regional office markets across the UK - Edinburgh, Glasgow, Birmingham, Bristol, Leeds and Manchester - property consultancy Savills noted that Glasgow, in particular, had seen legal firms undertake notable moves and expansions. Heavyweight players such as Dentons and Pinsent Masons were consolidating their operations in the city, Savills said, drawn by its “strategic location, competitive costs and robust business environment”.

Most recently, Weightmans has moved into the top floor of the Ink Building increasing its occupation to 4,520 square feet, whilst TLT and Addleshaw Goddard’s expansion plans have seen the firms look to significantly grow their footprints in the city.

David Cobban, head of Savills Glasgow office and director in the firm’s office agency team, said: “We are continuing to see occupier activity from the legal sector in Glasgow as they look to take advantage of the city’s skilled workforce and dynamic market. Alongside TLT, Pinsent Masons has taken prime space in Aurora at 120 Bothwell Street, with further requirements from other firms looking for top quality office accommodation in 2025.”

The firm noted that a city centre location also remains a key priority as it enables law firms to gain “proximity to their clients and key business sectors”, while also attracting and retaining the best talent. This “flight to quality” means that rental rates often surpass those paid by other sectors and the research suggests that the legal sector is “willing to pay for this privilege”, accounting for 40 per cent of the top ten rents in regional markets. In Glasgow, Pinsent’s deal at Aurora will see the firm pay £41.50 per sq ft, said to be a record rent for the city.

Savills also points to “positive trends in the talent pipeline”, with the number of universities feeding the legal market increasing by 14 per cent in three years. According to PwC’s annual Law Firms Survey for 2024, some 60 per cent of the UK’s top 50 law firms now have a presence outside of London and in the big six cities due to a higher educational focus on legal courses, increasing student retention, lower operating costs and lower living costs in these areas.

Meanwhile, lease expiry data from Savills suggests that strong activity in the legal sector will continue over the next five years. At present, legal “lease events” in regional cities are currently tracking at 22 per cent above the long-term annual average.

Emma Morton, global occupier services director, Savills, added: “Firms are increasingly investing in high-quality and sustainable office spaces and paying headline rents to secure premium locations that reflect their brand and meet employee expectations. However, this rapid expansion across regional cities is putting pressure on the availability of quality office space.”