NEW research has found Edinburgh has the most productive retail floorspace of any major UK city outside of London, with Glasgow close behind.
Analysis from commercial property consultancy Knight Frank found that Edinburgh achieves a retail sales productivity rate of £560 per sq. ft., while Glasgow’s is £499 per sq. ft. They place first and fourth, respectively, among the nine cities tracked – Manchester was second at £532 per sq. ft. and Leeds third at £503 per sq. ft. – and were well above the average of £432 per sq. ft.
Knight Frank explained that a higher productivity figure indicates strong sales volumes measured against the city’s amount of retail floorspace, while a low number suggests under-performance and/or an oversupply of accommodation.
Both outperformed the UK average of 2.3% for underlying retail rental growth last year, with Glasgow delivering 5.3% and Edinburgh 3%. During 2024, Glasgow had the highest prime rent of £295 per sq. ft., while Edinburgh has been catching up at £280 per sq. ft. – a 24.4% year-on-year rise. However, in the year to date, Glasgow has gone on to cross the £300 per sq. ft. threshold.
Despite the introduction of the St James Quarter in June 2021, which added 850,000 sq. ft. of retail floorspace, Edinburgh still has the lowest total volume among the UK’s major conurbations at 2.12 million sq. ft. Glasgow was third with 2.99 million sq. ft., while Birmingham and Liverpool occupied the top two spots.
Edinburgh’s limited space was reflected in its retail vacancy rate, which at 11.8% was the lowest outside of London. Meanwhile, Glasgow also performed better than the 18.2% average, with 16.6%.
Stephen Springham, head of retail research at Knight Frank, said, “Scotland’s central belt continues to show strength as a retail destination, despite the well-publicised challenges of the last few years. But, rather than city centre or shopping centre retail space being where there is an over-supply, our research suggests it is out-of-town pitches that are more challenged and where change of use is most likely to follow. The question is whether this floorspace is viable for alternative use.”
