Lismore: Renewed appetite for office sector in Scotland’s commercial property market

Quartermile 1
Lismore Real Estate Advisors has released its statistics of the Scottish investment market for Q3 2025, revealing encouraging signs of renewed activity in the office sector.
Total transaction volumes reached £440 million across 34 deals, representing a 3% increase on Q3 2024 and sitting 12% above the five-year average.
The office sector led the market, recording £142m in transactions, the largest sector total in Q3 and its strongest performance since Q3 2024.
Standout office transactions included BauMont Real Estate and KZN Real Estate’s £53.85m acquisition of Quartermile 1 in Edinburgh from Epic UK, and Strathclyde Pension Fund’s £19.6m purchase of Sentinel in Glasgow from Ardstone Capital.

Martha Street Apartments
The largest deal of the quarter was US investor, Harbert Management Corporation’s £58.5m acquisition of Martha Street Apartments, a city centre PBSA asset from Chris Stewart Group. Another noteworthy transaction was Northwood Urban Logistics £26m acquisition of the Malt Portfolio from CedarWood Asset Management, comprising 300,000 sq ft of multi-let industrial trade properties across six multi-let industrial estates located throughout central Scotland.

Properties in the Malt Portfolio
Chris Thornton, senior associate at Lismore, said: “Whilst transaction volumes remain subdued, we are seeing clear signs of renewed activity, particularly from core buyers seeking stable income from strong tenants and platform builders consolidating retail parks and industrial assets.
“The deepest demand continues to be for sub-£10m transactions, where asset management potential or short-to-medium-term reversion opportunities attract private investors, family offices and property companies.”

Chris Thornton
He added: “Investor appetite is being driven both by those targeting double-digit yields secured against strong covenants and by value-add players pursuing refurbishment opportunities.
“French SCPIs remain active, but pension funds, investment managers and property companies have also re-entered the market, broadening the buyer pool.
“Macroeconomic challenges remain, but investors are treating them as background noise. After an extended period of caution, the market is beginning to re-engage. The office sector’s performance this quarter is a clear signal of renewed appetite, and we expect to see further momentum as pricing and fundamentals align.”