Scotland's commercial property investors eyeing a ‘year of opportunity’
The coming 12 months are shaping up to be a “year of opportunity” for Scotland’s commercial property market with a number of significant deals in the pipeline, a new study suggests.
The upbeat outlook comes after figures show that the final quarter of 2024 saw £406 million of investment transactions traded, up 6 per cent on the same period a year earlier. While volumes were 4 per cent below the five-year average, there are a number of deals due to complete in the opening months of 2025, including a couple of significant transactions, according to the latest research from Lismore Real Estate Advisors.
Advertisement
Hide AdAdvertisement
Hide AdThe largest transaction of the past quarter was in Aberdeen, with EEH Ventures concluding a £45m acquisition of a trio of office buildings at the Prime Four Business Park from BMO. In Glasgow, Swiss Life acquired the city centre Maldron Hotel for £31.5m from Abrdn. Also in the west, Iroko Zen acquired Barrhead Retail Park for £14.6m from London and Scottish while at Eurocentral, 30 Coddington Crescent was acquired by AFH for £9.4m from Ahli United Bank.


Lismore’s quarterly review shows a good degree of optimism. Almost nine in ten respondents see 2025 as a year of opportunity, with fund managers and investment managers particularly positive.
Challenges include economic contraction and budget-driven pressures on retailers and recruitment. However, stabilised pricing and strong rental growth in prime industrial, high street retail and selective offices fuel cautious optimism.
Lismore director Simon Cusiter said: “Following a challenging period, the market shows clear signs of recovery, with investment volumes rising, interest rates easing and confidence returning. As our research has shown, investor appetite for real estate remains robust but highly selective.
Advertisement
Hide AdAdvertisement
Hide Ad“We expect 2025 to mark a more stable recovery phase, with investors focusing on sectors and locations primed for income growth. However, with interest rates expected to reduce slowly and inflation likely to remain slightly elevated, significant yield compression seems unlikely. Early 2025 is anticipated to see investors prioritising income potential over yield shifts, with momentum building as the year progresses.”
He added: “Scotland’s logistics and multi-let industrial market stand out, with rents remaining competitive compared to the UK and strong growth potential along the M8/M74 corridors and urban estates. Edinburgh’s central business district office market is also promising, with demand exceeding supply for core city-centre spaces.”
Investors predict that the top performing sectors for 2025 will be industrial, living and retail warehousing, with 77 per cent of respondents identifying these “resilient and liquid” sectors as top performers.
Tom Elviss, fund manager at Columbia Threadneedle, said: “2025 presents a mix of challenges and opportunities for real estate investors. Sectors like industrial, retail warehousing and residential are poised for growth, driven by demographic shifts, digitalisation and supply chain demands. Global capital is expected to play a key role, especially as sustainability credentials and rental growth enhance appeal.
Advertisement
Hide AdAdvertisement
Hide Ad“However, headwinds such as economic uncertainty and rising operational costs persist. Investors’ focus will be on sectors with resilient fundamentals and adaptable operational models. Liquidity will hinge on global players deploying capital and motivated vendors entering the market.”
Comments
Want to join the conversation? Please or to comment on this article.