The Scottish commercial property investment market ended 2025 on a firmer footing according to the Quarter 4 review from Lismore Real Estate Advisors.
While the investment market has not had quite the same buzz this year, several larger deals completed in the final quarter have helped the year-end position look healthier and broadly in line with the five-year average.
Across the whole of 2025, we estimate that 110 deals will be concluded, accounting for volume of £1.602 billion, compared with £1.685 billion in 2024.
The sector breakdown for the year shows that shopping centres account for the largest share at 22%, followed by offices at 19% and retail warehousing at 15%. Living represents 13% of the total, while alternatives and industrial each contribute 10%. High Street makes up 9% and food represents the smallest portion at 2%.
Total transaction volumes for quarter 4 were exceptionally strong and are expected to reach approximately £664 million across 42 deals. This represents a 64% increase on Q4 2024, with volumes standing 40% above the five-year average.
The largest transaction of the quarter (and indeed of the entire year) was the £220m acquisition (7% NIY) of the 1.1m sq ft Braehead Shopping Centre by Frasers from SGS Retail.
In Edinburgh, Corum acquired Henry Duncan House on George Street for £19.2m (7.2% NIY) and in Glasgow, Remake Asset Management acquired Uniqlo’s flagship shop on Argyle Street for £9m (7.12% NIY). Up in Aberdeen, the TotalEnergies logistics facility at Gateway Business Park has been acquired by Alderan for their SCPI ‘Comète’ for £28.55m (8.1% NIY) from Tritax Big Box.
Lismore Director Colin Finlayson said:
“Quarter 4 was characterised by a selective but increasingly confident investment market, with a small number of high-value transactions, demonstrating resilient demand for best-in-class assets. Rental growth, rather than yield compression, continues to underpin performance across favoured sectors such as retail warehousing, logistics and prime retail, supported by a constrained development pipeline.”
Prime high street locations, notably Princes Street and Buchanan Street, are enjoying a revival in investor interest led by private and local capital.
Improving expectations around interest rates are gradually strengthening sentiment, while the return of South African investors and sustained demand for long-let discount food stores further highlight where conviction and liquidity remain strongest in the market.
More quietly, offices are beginning to draw increased attention from opportunistic buyers as occupational markets show signs of improvement.
Colin Finlayson concludes:
“Q4 demonstrated that while the market remains selective, confidence is returning for the right assets. Large, high-quality transactions have shown that capital is there when pricing and fundamentals align.
“Looking ahead, improving sentiment around interest rates and continued rental growth in prime locations should help unlock further activity in 2026.”