Louise Norris, Partner in our Commercial Property team in Glasgow, believes investment interest will be strong as plans are discussed to transform city centre as a place to live, work and enjoy leisure. She expects investor interest will be strong if plans for the £825m transformation of Buchanan Galleries are pursued.
While still at the concept stage, proposals include the demolition of the current shopping centre and creation of a new, net-zero retail, office, leisure and residential quarter.
Glasgow City Council is to start negotiations with developer Landsec - the head tenant of the Galleries - on its masterplan, which could be delivered in a decade-long project starting next year.
Discussions are taking place at a time of evolution for the wider city centre, with debate about the future of Sauchiehall Street reignited by news that Marks & Spencer intends closing its store there.
And they come as steps are also taken towards the £50m transformation of the St Enoch Centre, which includes 1,700 new homes, offices and a four-star hotel.
Louise said: “I would expect there to be healthy interest from investors looking to become part of what could emerge from the Buchanan Galleries area, both in terms of developing and setting up businesses there. It’s an exciting prospect.
“Just look at the transformation of the Merchant City in recent times as an example of what can be achieved to create a welcoming, successful area. There’s an opportunity to deliver that on a wider scale.
“A joined-up approach with everything else going on throughout the city centre will be an important part of wider success for the city, though. By taking holistic action across the whole area - from Sauchiehall Street, down Buchanan Street to Argyle Street - there’s a chance to have developments which compliment each other and create a great overall experience.
“Hopefully the plans for Buchanan Galleries and the St Enoch Centre can really unlock that potential.”
A £115m investment is already underway in Sauchiehall Street and the surrounding area as part of the Glasgow City Deal.
It has been reported that the Buchanan Galleries redevelopment - estimated to have the power to drive more than £1bn into the city’s economy once complete - could create more than 850 construction jobs as it’s built, leading to more than 9,500 permanent jobs in the city centre.
The rise of online shopping and the prospect of long-term hybrid working - with people spending less time in offices as a result of the coronavirus pandemic - are among the key drivers for change.
Louise added: “There’s no hiding from the challenges that the retail sector faces. Changing habits accelerated by the impacts of Covid-19 mean that bigger shops are going to have difficulties.
“But the plans which are emerging show that out of those challenges are coming opportunities to create a city centre that is stronger and more sustainable, economically and environmentally.
“Mixed-use city centres - where people can live, work and enjoy leisure time - are going to be an important part of a vibrant, successful future.”
Article published on 18 February 2022.
