Scotland’s office sector recovering, despite “subdued” start to 2025 for commercial property investment

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SCOTTISH commercial property attracted more than £300m of investment during the first quarter of 2025 in a subdued start to the year, according to research from Knight Frank. The independent commercial property consultancy’s analysis of Real Capital Analytics (RCA) data found that there were £315m worth of deals between January and March. This is compared [...]The post Scotland’s office sector recovering, despite “subdued” start to 2025 for commercial property investment appeared first on Deadline News.

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Business Property and Construction April 16, 2025 0 15 Share Facebook Twitter Pinterest WhatsApp Linkedin Tags commercial property knight frank office sector Real Capital Analytics scottish property More by Ryan Nixon Seabird numbers in Scotland continue to fall Ryan Nixon - April 15, 2025 Man jailed for stranger rape after forcing way into victim’s home Ryan Nixon - April 15, 2025 OPINION: Why misconceptions shouldn’t hold back Scotland’s Net Zero ambitions Ryan Nixon - April 15, 2025 Scotland’s office sector recovering, despite “subdued” start to 2025 for commercial property investment SCOTTISH commercial property attracted more than £300m of investment during the first quarter of 2025 in a subdued start to the year, according to research from Knight Frank. The independent commercial property consultancy’s analysis of Real Capital Analytics (RCA) data found that there were £315m worth of deals between January and March. This is compared to the £475m Q1 average for the past five years, as investors assessed the uncertain macroeconomic and geopolitical backdrop.

However, the median since Q1 2021 is skewed by a stand-out first quarter in 2022, when £900m was transacted as a number of deals affected by the Covid-19 pandemic concluded. Alasdair Steele is the head of Scotland commercial at Knight Frank. Excluding that figure, the four-year average was £369m.

Offices accounted for their highest share of deals since 2021 at 36% (£112m), as sentiment towards the sector picked up. Retail was just behind, accounting for 35% (£109m) of the market, and hotels were another 24% (£76m). Private investors were the most active buyers of Scottish commercial property, with 42% of investment volumes.

International buyers represented 37%, while real estate investment trusts (REITs) and listed property companies accounted for 18%. Alasdair Steele, head of Scotland commercial at Knight Frank, said: “The market has been resilient, but the strong news flow at the start of the year has inevitably had an effect on investors’ decision-making. “Given the events of the last few weeks, it seems likely that the uncertain backdrop will continue into the second quarter, which may make for another challenging few months.

“Nevertheless, there are some bright spots in these figures. “More interest in offices, after a challenging couple of years, suggests that the green shoots we saw in the sector last year are taking hold. “At the same time, private investors being so active demonstrates there is an active pool of buyers beyond the international investors that dominated the market in the late 2010s.

“The recent volatility in equity markets underlines the enduring attraction of commercial property as an alternative investment – particularly in the UK, which provides a relative safe haven in the current environment. “Within that, Scotland offers good value over many other parts of the UK and, with the country aligned to a number of growth areas such as the energy transition, there are good reasons to be optimistic long term.” Related Tags commercial property knight frank office sector Real Capital Analytics scottish property Share Facebook Twitter Pinterest WhatsApp Linkedin Previous article Seabird numbers in Scotland continue to fall Related Stories Scottish property firm marks significant growth with five years in business April 10, 2025 Edinburgh posts positive Q1 office take-up as pandemic impact lingers five years on April 8, 2025 Rent disputes fall despite rising rent costs March 18, 2025 Covid-19 pandemic prompts investor shift to industrial and retail property in Scotland February 21, 2025 News by Email Email Top Stories Business News Scottish News Top Sports News Sponsored post customers By continuing, you accept the privacy policy About Deadline News Suite 6, Bonnington Bond, 2 Anderson Place, Edinburgh EH6 5NP Tel: 0131 516 3433 Useful Links Agency Terms and Conditions Write for us – guest posting opportunities on Deadline News and more Sponsored Posts T&C News Coverage Photography Video Services Student placement programme Contact Us Change privacy settings Privacy settings history Revoke consents Social Facebook Linkedin Twitter Youtube.