LOGISTICS continues to outperform in Scotland’s investment market, according to new research on Q2, 2025 carried out by Lismore Real Estate Advisors.
Transaction volumes in Q2 ‘appear relatively healthy’ at £296 million, representing an increase of 9% compared to the same period in 2024. However, two transactions account for 48% of total market activity and volumes are 21% below the five-year average.
Lismore said stripping out landmark transactions, such as Nuveen’s £100 million sale of the W Hotel at Edinburgh’s St James Quarter to Schroders; and Sovereign Centros’ £54.44 million disposal of St Enoch Shopping Centre in Glasgow to Praxis, total investment volumes are actually down on the same period last year.
Chrissie Clancy, investment surveyor at Lismore said, “Edinburgh’s hotel market continues to outperform, buoyed by strong tourism and business travel. The city’s high occupancy (85%) and double-digit RevPAR growth are driving investor appetite for increasingly scarce redevelopment opportunities.
“The high street retail sector is also regaining momentum, with investor focus broadening beyond Buchanan and George Street to the best parts of Princes and Argyle Street, supported by limited supply and rental growth. Elsewhere, the market is showing early signs of renewed activity, with Glasgow offices seeing increased interest and several deals under offer.
“French SCPI buyers remain active, now expanding their focus beyond the central belt to include Aberdeen for well-let, high-yielding assets. As income becomes the primary driver of returns, asset management-focused investors are well placed, while sub-£10m lots remain highly liquid among private, often debt-free, buyers.”
Amidst wider market volatility, Lismore revealed that logistics has emerged as a ‘rare constant’, driven by strong demand, low supply and renewed investor appetite.
The quarterly investor research indicates sentiment towards Scotland’s logistics sector remains broadly optimistic. 56% of respondents expect to be net buyers in H2 2025, with just 10% anticipating they will be net sellers. Appetite is strongest among institutional funds, with 71% identified as net buyers, while investment managers and property companies also indicated positive momentum. However, limited availability of high-quality stock was a recurring theme.
When asked about key drivers of logistics investment, occupational demand (29%) and rental growth (26%) topped the list.
The full Lismore Quarter 2 2025 Review is available to download HERE
