NEW research has revealed Scotland’s commercial property markets are showing signs of stabilisation, as inflation and interest rate pressures ease.
The findings come from the latest Scottish Property Review 2026 from property consultancy Ryden.
The annual report finds that while many occupiers remain cautious due to operating costs, a shortage of modern buildings and limited development activity is tightening supply across several sectors and pushing rental values upward.
Across Scotland’s largest cities, Ryden said demand is strongest for high-quality buildings with strong ESG credentials and modern workplace amenities.
In Glasgow, city centre office take-up reached 452,000 sq ft in 2025, slightly down on the previous year but 3% above the five-year average. A new headline rent of £41.50 per sq ft has been achieved in Glasgow’s city centre. A shortage of Grade A offices is expected to drive further rental growth and potentially trigger new speculative developments.
The report highlights that 43% of lettings involved fitted-out space, reflecting a growing desire to avoid the upfront costs of office fit-outs and move quickly.
Edinburgh’s office market, by contrast, experienced one of its toughest years on record, with take-up down 30% year-on-year amid economic uncertainty and a shortage of suitable Grade A space. With limited availability, many businesses are opting to remain in their current premises.
Industrial and logistics property continues to be one of the strongest performing sectors.
Demand from logistics operators, manufacturers, trade counters and last-mile distribution businesses remains consistently high, although the market continues to face a chronic shortage of modern industrial buildings.
The report also highlights shifting dynamics across Scotland’s residential investment markets. Purpose-built student accommodation (PBSA) has slowed due to weaker demand and rising development costs, although Glasgow and Edinburgh remain relatively resilient markets. However, renewed confidence is emerging in Build to Rent (BTR) following the Scottish Government’s proposals to exempt the sector from rent control measures.
Mark Robertson, research partner at Ryden, said, “Scotland’s property markets are beginning to find a bit more stability. Demand is still there, but what’s really shaping the market now is the lack of new, high-quality space coming through the pipeline.
“In Glasgow and Edinburgh in particular, the shortages of Grade A offices are already pushing rents higher and will likely encourage the next wave of development. Meanwhile the industrial sector continues to perform strongly, simply because there isn’t enough modern space to meet occupier demand. As policy around residential investment becomes clearer, we should start to see confidence returning across several parts of that market.”
