Five key Scottish commercial property transactions in Q1

While headline vacancy rates remain elevated, particularly in Glasgow, demand is increasingly focused on a narrow segment of high-quality, city centre buildings.

That shift is reshaping the market, with occupiers competing for a limited pool of Grade A space.

Data from CoStar Group points to a growing disconnect between perception and reality.

As Grant Lonsdale, senior director of market analytics at CoStar, said: “Over the past few years since Covid there’s been a narrative that offices are empty everywhere.

“That is still the case in parts of the market. But when you narrow it down to the very top end, there’s actually very little available.”

That imbalance is most visible in Glasgow.

“For occupiers looking for around 10,000 sq ft on one floor in a five-star building, there’s effectively one option,” Grant says.

“You can count it on your fingers. The same is broadly true in Edinburgh as well.”

Demand, however, is strengthening with momentum growing in the market.

Grant said: “More than 300,000 sq ft was taken up in Glasgow in the first quarter, and average deal sizes are up around 60 per cent over the past couple of years.

“At the same time, supply is not keeping pace with construction at historically low levels.

“There’s not really any new office construction in the city at all and just a couple of major refurbishment projects underway.”

N-Able makes Exchange move

N-Able has secured space at Exchange Crescent, adding to a series of lettings across Edinburgh’s core office market.

The deal reflects continued demand from technology and business services firms for well-located, high-quality space.

Exchange Crescent remains a prestigious location within the Capital’s office market, offering modern accommodation in a well-established business district.

The letting highlights the breadth of occupier demand, with both large corporates and growth companies active in securing prime office space to accommodate their needs.

Shawbrook moves into Atrium Court

Shawbrook Bank has taken 26,700sq ft at Atrium Court, one of the largest recent office lettings in Glasgow.

The deal highlights continued demand from financial services occupiers for high-quality, city centre space.

The scale of the letting underlines the return of larger occupiers to the market, with businesses prioritising location, specification and access to amenities.

It also reflects the limited availability of comparable space at the top end, where competition for well-located buildings remains strong.

Sky takes on Glasgow space

Sky took on 26,100sq ft of office space at 55 Douglas Street in March, securing occupancy across the fourth and fifth floors of the Grade A building.

The deal, advised by CBRE, followed an extensive market search by the broadcaster and represents one of the largest recent office lettings made in Glasgow.

Sky joined existing tenants, including offices for the Scottish Daily Record and Sunday Mail, earlier this year.

Around 44,000sq ft remains available in the building across its ground, second and third floors.

GB Energy puts down Aberdeen roots

Great British Energy has taken space at Marischal Square, underlining continued activity in Aberdeen’s office market.

The development remains one of the Granite City’s most prominent Grade A schemes, attracting occupiers linked to energy and infrastructure.

The deal reflects steady demand for high-quality space, despite a more subdued local market backdrop.

While transaction sizes tend to be smaller than in Glasgow or Edinburgh, activity at schemes such as Marischal Square points to a stabilising occupier base for Aberdeen.

EY makes Edinburgh move

EY has taken around 36,000sq ft at3 Haymarket Square, subletting space within Baillie Gifford’s new Edinburgh headquarters.

The move will see EY relocate from Atria One on Morrison Street, marking one of the largest recent office transactions in the city.

The building forms part of a 280,000sq ft development pre-let by Baillie Gifford, with flexibility built into the lease structure.

JLL advised on the sublet, which reflects continued demand for large, high-quality space in central Capital locations.

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