Commercial property activity in Scotland had a subdued start to 2025, with investment below average, according to research from Knight Frank.
Its analysis of Real Capital Analytics data found there were £315 million-worth of deals between January and March, compared with the £475m Q1 average for the past five years, as investors assessed the uncertain macroeconomic and geopolitical backdrop.
However, the median since Q1 2021 is skewed by a stand-out first quarter in 2022, when £900m was transacted as a number of deals affected by the Covid-19 pandemic concluded. Excluding that figure, the latest quarter was still below the four-year average of £369m.
Offices accounted for their highest share of deals since 2021 at 36% (£112m), as sentiment towards the sector picked up. Retail was just behind, accounting for 35% (£109m) of the market, and hotels took a 24% (£76m) share.
Private investors were the most active buyers of Scottish commercial property, with 42% of investment volumes. International buyers represented 37%, while real estate investment trusts (REITs) and listed property companies accounted for 18%.
Alasdair Steele, head of Scotland commercial at Knight Frank, said: “Given the events of the last few weeks, it seems likely that the uncertain backdrop will continue into the second quarter, which may make for another challenging few months.”
Wholefoods takes Glasgow unit after acquisition
Wholefoods Glasgow will open a temporary cash and carry business in a unit acquired by a joint venture company.
The JV between Buccleuch Property and Sir Robert McAlpine Capital Ventures has acquired the unit at 101 Centre Street, Glasgow.
Situated on south side of the Clyde, the 1.78-acre site is adjacent to major developments such as the Barclays Campus and the Buchanan Wharf, Build-to-Rent (BTR) scheme.
The cash and carry operation will provide an immediate and stable rental income while medium-term redevelopment plans are considered and brought forward.
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