Edinburgh office market sees ‘flight to certainty’ as demand for fitted-out space soars
“Occupiers still want the best space, but they’re also looking for greater confidence around costs, programme and delivery” – Sara Dudgeon, JLL
Firms looking for new offices in Edinburgh are prioritising “certainty around costs and delivery” as demand grows for fully fitted-out space, according to new research.
The second quarter of 2026 saw some 124,000 square feet of office space transacted across the capital, with an additional 90,000 sq ft of so-called “regear” activity on top of this, the latest findings from property consultancy JLL reveal.
Grade A and prime space accounted for just under half of all city-wide activity. Notable transactions included EY’s 38,000 sq ft sublease at Baillie Gifford’s 3 Haymarket Square development, where the firm will relocate from Atria One by the end of 2026.
JLL’s data suggests that occupiers increasingly favour fully fitted, “plug-and-play” offices as rising fit-out costs and construction uncertainty influence decision making. Fit-out costs in Edinburgh have seen significant cost inflation, property experts noted, driving businesses to reduce upfront capital expenditure by taking ready-to-use space.
With prime availability remaining limited, secondary Grade A buildings are said to be helping to fill the market gap.
JLL said the trend reflected a market shift from “flight to quality” towards a “flight to certainty”, with occupiers seeking high-quality space while reducing fit-out risks, cost inflation and delivery delays.
Prime rents in Edinburgh currently stand at £49.50 per sq ft, with the firm forecasting £60 per sq ft by 2030, if not before. The latest study notes that the city’s “constrained” development pipeline driven by high material costs, geopolitical uncertainty and labour shortages, means that occupiers often need to agree lease terms before refurbishment or construction completes - known as a pre-let - to secure future “best-in-class” space.
Sara Dudgeon, associate at JLL in Edinburgh, said: “Flight to quality has long defined Edinburgh’s office market, but increasingly we’re also seeing a ‘flight to certainty’. Occupiers still want the best space, but they’re also looking for greater confidence around costs, programme and delivery.
“Fitting out void offices is becoming increasingly attractive for landlords. Offering fitted accommodation can differentiate assets, attract occupiers quickly and support rental growth.
“Constrained development activity and continued demand for best-in-class space are likely to keep upward pressure on rents, particularly for high-quality buildings offering both quality and certainty,” she added.
The firm said it had observed similar trends across other UK regional markets, including in Birmingham.
Last week, it emerged that Scotland’s property investment market was “relatively subdued” in historical terms, despite a £200 million-plus pipeline of deals amid strong demand for hotels and student accommodation.
Releasing its latest review of the market, Lismore Real Estate Advisors noted that investment transaction volumes topped £358m during the second quarter of 2026, up 21 per cent on the same period last year but still 7 per cent below the five-year quarterly average. The report pointed to “well in excess of” £200m of deals under offer in the Scottish market.
Hotel and purpose-built student accommodation (PBSA) transactions dominated activity in the second quarter of 2026, accounting for about two-thirds (67 per cent) of the total deal volume.
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