Sarah Hagen

For occupiers, investors and landlords alike, 2025 was a year defined by the flight to quality, tightening supply and the gradual but meaningful re-embedding of the office into working life.

Across Scotland’s major cities, ESG-compliant, well-located and fitted offices continue to let quickly. In contrast, many secondary buildings may require repositioning, repurposing or price correction to attract high levels of interest.

Nowhere is this more evident than in Glasgow, where an exceptionally thin Grade A pipeline is in sharp focus. The last pockets of good-quality space sitting just below prime rental levels are attracting attention from occupiers who are keen to upgrade, but unable to stretch to top-of-market rents. As these options are absorbed, supply will tighten further into 2026, creating a path for secondary stock to satisfy this demand.

The return to more frequent office attendance is undoubtedly supporting this demand, even if it falls a little short of pre-pandemic, five-day norms. We are witnessing occupiers who downsized too aggressively post-Covid find themselves back in the market for additional space for requirements that often cannot be accommodated in their existing buildings.

Tuesday to Thursday attendance patterns continue to dominate, driving strong interest in fitted, flexible floors that can adapt to fluctuating occupancy. While this has long characterised the sub-5,000 sq ft market, it is now firmly extending into the 5,000 – 10,000 sq ft bracket as occupiers prioritise agility (albeit sometimes at a premium). This shift is positive for high-quality offices, while also opening opportunities for secondary stock, particularly for owners looking to unlock value in older or poorer-quality assets.

Against this backdrop, CBRE’S activity reflects both the depth and competitiveness of the market. In 2025, we delivered a 49% market share in Glasgow, completed 233,000 sq ft of deals (350,000 sq including sales) and acquired 140,000 sq ft on behalf of occupier clients. Highlights include advising on the largest leasehold acquisition of the year – 31,724 sq ft to Pinsent Masons at Aurora RE – as well as the largest VP City Centre Office Sale, the 97,000 sq ft disposal of 45 Waterloo Street for BrightBay, which will be repositioned to deliver some much-needed best in class supply.

2025 also saw investor confidence beginning to re-emerge. Following a quieter first half, we saw a clear uptick in activity after the summer, with both domestic and overseas buyers drawn back by tightening supply, improving occupational trends and the prospect of rental growth, not only for best-in-class assets but those ripe for refurbishment to capitalise lack of supply in Grade A / B.

The flex market has been another defining feature of 2025, expanding by around 50,000 sq ft across Scotland. New, prime, best-in-class openings in Glasgow and Edinburgh have pushed headline flex rents higher, while less competitive space has been forced to discount, pulling down the average.

Operators are performing well: The Auction Rooms reached 100% occupancy within six months at top-of-market rates. Post-Covid, our flex requirements are up 150%, yet availability remains constrained, with Glasgow averaging 80% occupancy and Edinburgh closer to 95%. Furthermore, out-of-town locations are experiencing high occupancy levels – a trend that will continue unless supply increases through operator expansion or landlord-led flex offerings.

Looking to the rest of the year, the themes are clear. The flight to quality will intensify, flexibility will become standard rather than a premium and best-in-class refurbishments will take centre stage amid a limited development pipeline. At the same time, we expect more core-plus and value-add capital to re-enter Scotland in search of repriced opportunities, alongside continued momentum around repurposing and mixed-used strategies as owners future-proof assets for the next cycle.

Sarah Hagen is head of offfice agency, Glasgow at CBRE