The city’s office market transacted just under half a million square feet (492,829sq ft) in 2025, according to data from JLL. This is below the 10-year average, with only four deals completed over 15,000 sq ft throughout the year, reflecting a challenging year of cyclical market conditions and broader economic uncertainty.

Many businesses instead opted for short-term extensions to allow pipeline opportunities to reach the market, with 250,000 sq ft of regears taking place in addition to the new take-up reported.

However, JLL expects this trend to shift in 2026, given the known pipeline of occupiers already actively seeking new space and the start of a new market cycle that will prompt more companies to make strategic relocation decisions.

Working habits have now stabilised, so occupiers are more confident about their space requirements and are prioritising high quality stock that is “commute-worthy” and offers a high-quality experience for their employees.

This early engagement is building pent-up demand across the market among professional services businesses – particularly finance firms. The result is a stronger pipeline of activity heading into 2026, aligning with forecasts for improved market conditions across UK office markets.

JLL also anticipates that flex offices will continue to be in high demand, with the city’s shortage of stock presenting opportunities for more capacity and new entrants.

Extensive refurbishments are also coming through, with The Cube on Leith Street set to be the city’s only deep retrofit delivered in 2026 and expected to achieve premium rents.

Pre-let discussions on significant schemes are also anticipated, including Aviva and Bell Hammer’s Rosebery development which was launched to market in 2025. There are no major office speculative developments in the pipeline, which will further force parties to start pre-letting discussions.

JLL anticipates that West Edinburgh will enjoy improving fortunes following a series of smaller deals in 2025. Further commitment to the area is evident, with refurbishments planned or underway at 6 Lochside Avenue, BASE and 3 Lochside Avenue, all geared towards sustainability and employee experience, and with rental levels significantly below those in the city centre.

Hannah Done, director at JLL in Edinburgh, said: “While the amount of space transacted on in 2025 was lower than we’d typically expect, the reality is that activity levels don’t reflect what’s happening beneath the surface. We’re seeing occupiers plan further ahead than ever before, assessing their options three, four, even five years before their leases expire.

“This strategic approach is entirely rational in a market with such limited Grade A supply. We are therefore entering 2026 with a stronger pipeline of requirements– and with improved market fundamentals expected across the UK, we anticipate this translating into increased transaction activity and continued rental growth for the best buildings.”