NEW research from Lismore Real Estate Advisors has revealed encouraging signs regarding investment in Scotland’s office sector in Q3 2025.
Total transaction volumes in the Scottish investment market reached £440 million across 34 deals, representing a 3% increase compared with the same period in 2024 and sitting 12% above the five-year average.
The office sector led the way with £142 million in transactions, the largest sector total in Q3 and its strongest performance since Q3 2024.
Standout office deals included BauMont Real Estate and KZN Real Estate’s £53.85 million acquisition of Quartermile 1 in Edinburgh from Epic UK, and Strathclyde Pension Fund’s £19.6 million purchase of Sentinel in Glasgow from Ardstone Capital.
The largest deal of the quarter was US investor, Harbert Management Corporation’s £58.5 million acquisition of Martha Street Apartments, a city centre PBSA asset from Chris Stewart Group.
Chris Thornton, senior associate at Lismore, said, “Whilst transaction volumes remain subdued, we are seeing clear signs of renewed activity, particularly from core buyers seeking stable income from strong tenants and platform builders consolidating retail parks and industrial assets. The deepest demand continues to be for sub-£10 million transactions, where asset management potential or short-to-medium-term reversion opportunities attract private investors, family offices and property companies.
“Investor appetite is being driven both by those targeting double-digit yields secured against strong covenants and by value-add players pursuing refurbishment opportunities. French SCPIs remain active, but pension funds, investment managers and property companies have also re-entered the market, broadening the buyer pool.
“Macroeconomic challenges remain, but investors are treating them as background noise. After an extended period of caution, the market is beginning to re-engage. The office sector’s performance this quarter is a clear signal of renewed appetite, and we expect to see further momentum as pricing and fundamentals align.”
