The Scottish commercial property investment market ended 2025 on a firmer footing, with several larger deals putting the sector broadly in line with the five-year average.
The fourth quarter review from Lismore Real Estate Advisors estimates that across the year, 110 deals will be concluded, accounting for volume of £1.602bn, down marginally from £1.685bn in 2024.
Shopping centres account for the largest share at 22%, followed by offices at 19% and retail warehousing at 15%. Living represents 13% of the total, while alternatives and industrial each contribute 10%. The high street makes up 9% and food represents the smallest portion, at 2%.
Total transaction volumes for the fourth quarter were ‘exceptionally strong’ and are expected to reach approximately £664m across 42 deals. This represents a 64% increase year-on-year, with volumes standing 40% above the five-year average.
The largest transaction of the quarter – and indeed of the entire year – was the £220m acquisition of the 1.1 million sq ft Braehead Shopping Centre by Frasers from SGS Retail.
In Edinburgh, Corum acquired Henry Duncan House on George Street for £19.2m, while in Glasgow, Remake Asset Management acquired Uniqlo’s flagship shop on Argyle Street for £9m. Up in Aberdeen, the TotalEnergies logistics facility at Gateway Business Park has been acquired by Alderan for £28.55m from Tritax Big Box.
Lismore director Colin Finlayson said: “Rental growth, rather than yield compression, continues to underpin performance across favoured sectors such as retail warehousing, logistics and prime retail, supported by a constrained development pipeline.”
Prime high street locations, notably Princes Street and Buchanan Street, are seeing a revival in investor interest led by private and local capital.
Improving expectations around interest rates are gradually strengthening sentiment, while the return of South African investors and sustained demand for long-let discount food stores further highlight where conviction and liquidity remain strongest in the market.
More quietly, offices are beginning to draw increased attention from opportunistic buyers as occupational markets show signs of improvement.
Finlayson concluded: “Q4 demonstrated that while the market remains selective, confidence is returning for the right assets – large transactions have shown that capital is there when pricing and fundamentals align.
“Looking ahead, improving sentiment around interest rates and continued rental growth in prime locations should help unlock further activity in 2026.”