This revival is being driven by strong tenant demand, attractive entry yields, and emerging signs of rental growth.

Vacancy levels on Buchanan Street in Glasgow and George Street in Edinburgh are virtually zero, while Princes Street in Edinburgh is below 10% and continuing to fall. This tightening supply is underpinning investor confidence, despite wider economic headwinds.

Lismore’s quarterly investor sentiment survey highlights that 59% of respondents would consider investing in high street retail, with the strongest appetite among property companies (65%), followed by investment managers (56%). Funds remain more cautious, with only half expressing interest, often citing small lot sizes as a barrier. Across all groups, investors stressed that opportunities must be in prime micro-locations, particularly Scotland’s key high streets, where rebased rents and demonstrable demand create a compelling case. Secondary and tertiary towns remain largely out of favour.

Expectations for prime high street yields over the next 12 months are broadly stable, with 55% of respondents predicting no change. A further 41% expect yields to harden, while only 3% anticipate any softening.

Investor opinion is overwhelmingly in favour of mixed-use as the key to creating vibrant high streets in Scotland’s prime city centres, with 93% of respondents preferring it to pure retail/leisure. This view is consistent across all investor types, with 86% of property companies, 83% of funds and 90% of investment managers agreeing.

Investors also warned that mixed-use schemes cannot succeed without addressing wider challenges, including parking charges, planning constraints, fragmented ownerships and poor shopping environments. Positive examples in Edinburgh and parts of Glasgow show how combining residential and well-occupied offices can help attract high-quality retailers and support leisure uses.

Chris Thornton, senior associate at Lismore, added: “We’re seeing renewed momentum in retail investment, as pricing becomes compelling relative to sectors like logistics.

“The future of high streets lies in making them true destinations, blending retail, leisure, hospitality and culture. Prime streets and dominant centres are already showing rental growth as retailers compete for the best space, but success remains highly location-specific and reliant on mixed-use strategies alongside public sector engagement.

“Investor sentiment towards prime retail and leisure in Glasgow and Edinburgh is clearly improving, but selectivity remains key. With strong demand for the very best streets and rebased rents supporting early signs of growth, there are reasons for cautious optimism.”