The Scottish commercial property investment market ended 2025 on a firmer footing after a strong final quarter helped offset a quieter start to the year, according to a review from Lismore Real Estate Advisors.
While overall activity lacked the momentum seen in previous years, a cluster of larger transactions completed in the final three months pushed year-end volumes broadly in line with the five-year average.
Lismore estimates that around 110 deals were completed across 2025, with total investment of £1.6 billion, slightly below the £1.69 billion recorded in 2024.
Shopping centres accounted for the largest share of investment over the year, representing 22% of total volume, followed by offices at 19% and retail warehousing at 15%. Living assets made up 13%, while industrial and alternative sectors each contributed 10%. High street retail accounted for 9%, with food stores representing just 2%.
ROBUST FOURTH QUARTER
Transaction volumes in the fourth quarter were particularly robust. Lismore expects investment in the period to reach about £664 million across 42 deals, a 64% increase on the same quarter last year and around 40% above the five-year average.
The largest transaction of the quarter – and of the year – was Frasers’ £220 million acquisition of the 1.1 million sq ft Braehead Shopping Centre from SGS Retail, reflecting a net initial yield of 7 per cent.
Elsewhere, Corum acquired Henry Duncan House on George Street in Edinburgh for £19.2 million, while in Glasgow Remake Asset Management bought Uniqlo’s flagship store on Argyle Street for £9 million.
In Aberdeen, Alderan acquired the TotalEnergies logistics facility at Gateway Business Park for £28.55 million.
HIGH-QUALITY ASSETS
Investor demand was strongest for high-quality assets, with rental growth rather than yield compression underpinning performance across favoured sectors such as retail warehousing, logistics and prime retail.
Prime high street locations, including Princes Street in Edinburgh and Buchanan Street in Glasgow, have seen a revival in interest, led by private and local capital.
Improving expectations around interest rates have also supported sentiment, alongside the return of South African investors and sustained demand for long-let discount food stores.
Offices, meanwhile, are beginning to attract greater interest from opportunistic buyers as occupational markets show early signs of improvement.
RETURNING CONFIDENCE
Colin Finlayson (main picture, inset), a director at Lismore, says: “Q4 demonstrated that while the market remains selective, confidence is returning for the right assets. Large, high-quality 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.”
