The annual report finds that while many occupiers remain cautious due to operating costs, a shortage of modern buildings and limited development activity is tightening supply across several sectors and pushing rental values upward.

Across Scotland’s largest cities, demand is strongest for high-quality buildings with strong ESG credentials and modern workplace amenities.

In Glasgow, city centre office take-up reached 452,000 sq ft in 2025, slightly down on the previous year but 3% above the five-year average. A new headline rent of £41.50 per sq ft has been achieved in Glasgow’s city centre. A shortage of Grade A offices is expected to drive further rental growth and potentially trigger new speculative development announcements.

The report highlights that 43% of lettings involved fitted-out space, reflecting occupiers’ growing desire to avoid the upfront costs of office fit-outs and move quickly.

Edinburgh’s office market, by contrast, experienced one of its toughest years on record, with take-up down 30% year-on-year amid economic uncertainty and a shortage of suitable Grade A space. With limited availability, many businesses are opting to remain in their current premises, adopting a “stay vs go” approach to relocation decisions.

Industrial and logistics property continues to be one of the strongest performing sectors.

Demand from logistics operators, manufacturers, trade counters and last-mile distribution businesses remains consistently high, although the market continues to face a chronic shortage of modern industrial buildings.

Prime industrial rents in Glasgow have increased to around £12.50 per sq ft, reflecting competition for limited high-quality stock.

While new industrial development remains expensive, some selective speculative projects are beginning to re-emerge, with additional schemes expected to complete from early 2026.

The report also highlights shifting dynamics across Scotland’s residential investment markets.

Purpose-built student accommodation (PBSA) has slowed due to weaker demand and rising development costs, although Glasgow and Edinburgh remain relatively resilient markets. However, renewed confidence is emerging in Build to Rent (BTR) following the Scottish Government’s proposals to exempt the sector from rent control measures.

Meanwhile, capital markets activity across Scotland reached around £1.96 billion in 2025, with strong investor interest in living sectors such as BTR, single-family rental housing and co-living.

Mark Robertson, research partner at Ryden, said: “Scotland’s property markets are beginning to find a bit more stability. Demand is still there, but what’s really shaping the market now is the lack of new, high-quality space coming through the pipeline.

“In Glasgow and Edinburgh in particular, the shortages of Grade A offices are already pushing rents higher and will likely encourage the next wave of development. Meanwhile, the industrial sector continues to perform strongly, simply because there isn’t enough modern space to meet occupier demand.

“As policy around residential investment becomes clearer, we should start to see confidence returning across several parts of that market.”