The independent commercial property consultancy found that there was 128,000 sq ft of city centre off take-up in the first quarter, up 39% compared to the 92,000 sq ft during the same period last year. That saw the Grade A vacancy rate remain steady below 4%.

There were 37 deals – up 12% compared to 33 last year – with the banking & finance and professional services sectors the most active. Energy occupiers also continued to be buoyant, after several strong years of lease activity.

Recent deals include EY securing more than 36,000 sq ft at 3 Haymarket Square, subletting the space from Baillie Gifford, and Apatura taking 5,806 sq ft at recently refurbished Rutland Court in the Exchange District.

Last year Edinburgh saw its lowest level of annual office take-up since 2020, with just under 500,000 sq ft of deals. However, Knight Frank said this could at least partially be put down to timing, with lease events tending to work in five-year cycles, which could have the knock-on effect of a more positive 2026.

Toby Withall, office agency partner at Knight Frank Edinburgh, said: “The year started encouragingly and that was sustained into February, with a flurry of deals concluding after a subdued 2025.

“However, the events of the last few weeks have understandably seen many occupiers pause for thought, as they wait to see how the situation in the Middle East evolves.

“Notwithstanding what is happening at an international level, there are some positives to take from the first quarter in Edinburgh. The energy sector is still buoyant, adding to the banking & finance and professional services sectors that are the bedrock of the city, and the early figures suggest we could see more deal activity in 2026 – albeit from a comparatively low base last year.”

Mr Withall continued: “Take-up during 2025 was no doubt influenced by the fact it was five years post-Covid pandemic. A lot of agreements were put on hold during 2020 and 2021, given the circumstances, and the knock-on effect is that a lot of lease events have been pushed into the next few years.

“At the same time, though, the development pipeline remains very restricted and, with inflation remaining sticky, it is unlikely much more new space will be coming through. There is, however, a reasonable level of supply with the all-grade vacancy rate still above 10% - but occupiers continue to opt for high-quality space in prime, amenity-rich locations, where there are few available options.”