Investment into Scottish commercial property reached £460 million in Q3, up on the £430 million recorded in the second quarter, notes Colliers’ latest Scotland Snapshot.
The report highlights that year to date, investment into Scotland’s commercial real estate market has reached £1.4 billion, slightly ahead of the corresponding 2024 figure of £1.3bn and in line with the five-year average.
In the first three quarters of the year, the residential and PBSA sector has led the charge for investment, accounting for 25% of volumes at £350 million. The office sector followed, with 22% of volumes (£320 million) and hotels at 21% (£300 million). Retail investment accounted for a 15% market share while industrial and senior living were at 7% each (£100 million).
Douglas McPhail, head of Colliers Scotland, commented: “Investment activity in Scotland remains resilient, with Q3 volumes climbing above the previous quarter and year-to-date figures tracking ahead of 2024. While performance varies across sectors, the appetite for high-quality assets, particularly in residential and PBSA, continues to underpin confidence in the market.”
In the largest Q3 deal, Watkin Jones entered a joint venture with Maslow Capital to develop a 784-bed PBSA scheme (£182 million) in Glasgow.
The third quarter saw the office sector attract £110 million in investment across 11 deals, the largest of which was the sale of Central Exchange for £22 million to Ediston Properties and Strathclyde Pension Fund.
The hotels sector attracted £70 million of investment in the third quarter, driven by the purchase of the 259-bedroom ibis Edinburgh Centre South Bridge by Essendi.
Retail saw less than £20 million invested in Q3, considerably down on the £170 million invested in the second quarter. The only notable transaction was the £11 million sale of Waterfront Retail Park in Greenock to Frasers Group.
The industrial sector also witnessed muted investment, with just £50 million recorded in the third quarter, however this was up on the £25 million in Q2. The highest value deal was the £10 million sale of Clyde Gateway East in Glasgow to Aberdeen Group.