Glasgow is set to buck the gloomy economic trend by returning one of the highest levels of office rental growth in the country this year.
Anew report from consultants Lambert Smith Hampton (LSH) predicts growth in the city will reach five per cent this year, more than double the 2.2 per cent expected across the UK as a whole.
David Smith, head of office for LSH in Scotland, revealed take-up in Glasgow in 2007 totalled 675,000 square feet - demonstrating the strength of the city&apos;s market over the last year.
He added: "Recent high levels of activity mean Glasgow continues to suffer an acute shortage of Grade A space, which has pushed up rental levels to £27.50 per square foot.
"Although there is a substantial development pipeline committed for 2009/10, supply thereafter will be affected by lack of funding and recent yield shifts.
"Given the current economic climate we expect pre-letting during speculative construction to become more common.
"There is a high possibility, however, that some planned developments will fall victim to the credit crunch."