According to Savills latest Big Shed Briefing, take-up of industrial & logistics space (units of 100,000 sq ft+) in Scotland reached 516,026 sq ft across three transactions in H1 2025, a 306% increase on the first half of 2024.
The largest deal so far this year saw J&D Wilkes acquire 211,404 sq ft at the Foote & Telkes Building located at the Michelin Scotland Innovation Parc (MSIP) in Dundee. Savills notes that this was the only transaction within the 100-200,000 sq ft size range, with just two further deals totalling between 200-300,000 sq ft.
Manufacturing related occupiers made up 61% of total activity in H1 25, with 39% attributed to ‘other’ sectors. There currently has been no activity from 3PL firms or parcel operators, which is counter to trends seen across the rest of the UK.
From a supply perspective, units over 100,000 sq ft stands at 1.90 million sq ft spread across six units. Whilst this is an increase of 64% on H1 24, it can be attributed to the HarperCollins relocation. The firm’s former HQ is on the market comprising 860,892 sq ft of second hand Grade C space, accounting for 45% of the overall supply.
At present, there is no Grade A space available in Scotland and of the vacant supply, just 33% is Grade B. With a shortage of modernised stock, Savills believes that many occupiers will be increasingly concerned about rising power demands to meet future energy needs and the ability to improve environmental performance, especially in advance of mandated carbon net-zero targets. Given the risk of obsolescence and the further reduction of choice, this should see prime rental growth forecasts increase as a result.
Ross Sinclair, director in the industrial agency team at Savills Scotland, comments: “With the existing supply and development pipeline being highly constrained, coupled with key occupational specifics, the build-to-suit (BTS) route appears to be the only viable option for meeting the strong prevailing demand for requirements exceeding 100,000 sq ft. Positively, there are currently an encouraging number of larger enquires which should stimulate such development .”
Jonathon Webster, associate director in the industrial agency team at Savills Scotland, adds: “Traditionally, Scotland’s industrial & logistics market has been characterised by smaller units, especially multi-let. Key clients of Savills, such as Indurent, Mileway and Ribston, continue to invest in the multi-let and mid-box sector. Unlike in the big box market, we have seen a lot of leasing activity on smaller schemes where landlords have spent capital making improvements that have boosted key credentials such as sustainability. The hope is that we will see an increase in both new developments and refurbishment projects in order to continue satisfying requirements from occupiers looking for good quality space in this size bracket.”