A nine-storey building in Glasgow city centre is up for sale in what could be one of the biggest deals of the year.

122 Waterloo Street has been put on the market by its owner, a client of Knight Frank Investment Management, who is co-managing the sale with Cushman & Wakefield. 

It opened in 2018 and is currently occupied by Morgan Stanley as their largest European office outside London. 

As well as boasting 156,980 sqft of office space, more than 2000 staff work at the site and the ground floor also has a gym and fitness centre operated by Nuffield Health. 

Glasgow Times:

It was recognised as Scotland's 'top corporate workplace' in the 2020 British Council for Offices (BCO) awards for its efficient and comfortable breakout areas, spaces for collaboration and meditation, in-house restaurant, and wellbeing facilities.

The office also has a ‘mission critical’ status for its global operations and it is one of Glasgow's most sustainable properties, achieving an Energy Performance Certificate (EPC) A rating and BREEAM 'Excellent' certification. 

With a strong level of interest expected, it is believed that the sale could be one of the biggest in the city’s office market during 2024.

John Rae, head of office at Knight Frank Glasgow, said: “122 Waterloo Street is a prime asset located at the heart of Glasgow’s International Financial Services District, backed by a very strong covenant in Morgan Stanley – particularly given its ‘mission critical’ status.

"Glasgow has seen an upturn in deal activity in the first few months of 2024, so we expect to see a good level of interest, with buyer and vendor expectations moving closer together as interest rates appear likely to stay higher for longer.”

Murray Strang, managing partner for Scotland at Cushman & Wakefield, added: “In terms of building quality, tenant covenant and resultant income security, not to mention the strong opportunity for rental reversion and future potential for value uplift, this opportunity should be highly attractive for a range of international investors and parties considering investment into a leading, regional UK office market.”