The two iconic Scottish shopping streets with virtually zero vacancies as investors return to high street

Lismore’s latest investor research points to growing confidence in Scotland’s prime city centre retail and leisure markets. Property experts said strong tenant demand, attractive entry yields and signs of rental growth were helping to re-establish the investment rationale for these markets.

Vacancy levels on Buchanan Street in Glasgow and George Street in Edinburgh are virtually zero, while Princes Street in Edinburgh is below 10 per cent and continuing to fall, Lismore noted. This tightening supply is underpinning investor confidence, despite wider economic headwinds, the firm added.

The new investor sentiment research highlights that 59 per cent of respondents would consider investing in high street retail, with the strongest appetite among property companies, followed by investment managers. Funds remain more cautious, with only half expressing interest, often citing small lot sizes as a barrier.

Chris Thornton, senior associate at Lismore, said: “We’re seeing renewed momentum in retail investment, as pricing becomes compelling relative to sectors like logistics. The future of high streets lies in making them true destinations, blending retail, leisure, hospitality and culture.

“Prime streets and dominant centres are already showing rental growth as retailers compete for the best space, but success remains highly location-specific and reliant on mixed-use strategies alongside public sector engagement.”

He added: “Investor sentiment towards prime retail and leisure in Glasgow and Edinburgh is clearly improving, but selectivity remains key. With strong demand for the very best streets and rebased rents supporting early signs of growth, there are reasons for cautious optimism.”

The firm said investor opinion was “overwhelmingly” in favour of mixed-use as the key to creating vibrant main streets in Scotland’s towns and cities.

Investors warned that mixed-use schemes cannot succeed without addressing wider challenges, including parking charges, planning constraints, fragmented ownerships and poor shopping environments. Positive examples in Edinburgh and parts of Glasgow show how combining residential and well-occupied offices can help attract high-quality retailers and support leisure uses, Lismore added.