Graham + Sibbald present their latest market round ups across several areas of Scotland.

Stirling, Falkirk and Clackmannanshire Property Markets Overview

General market conditions in the Forth Valley area have been relatively strong over the past 12 months.

The Industrial market continues to perform extremely well, with demand still appearing to out-strip supply. Some new industrial developments are starting to appear, which will hopefully ease some of the recent supply issues, however, evidence would suggest that general demand will continue to be strong throughout 2025

Whilst the market for large retail premises is still very subdued, take-up of smaller properties, especially those with rateable values below the threshold for small business relief, has been good over the past 12 months. There does, of course, continue to be challenges for small retail businesses, however, it is encouraging that there is still enough confidence in the market for take-up of smaller properties.

The office market has generally remained steady over the past 12 months. There have been a couple of predominantly owner/occupier sales agreed in Stirling and Falkirk, as well as a significant letting of over 10,000sq.ft completed in Larbert.

Demand for good quality development sites in popular residential locations appears to be very strong at present. There seems to be a general lack of supply of development sites and, with the residential market continuing to perform strongly there is pent-up demand for sites in desirable locations when they do come to the market.

Inverness Property Market Overview

The Inverness office market has seen increased activity and enquiries over the past 12–18 months. Demand is strongest for modern, well-located offices up to 2,000 sq ft, particularly those with good parking. Smaller suites between 500–1,500 sq ft are especially popular, attracting interest from professional firms, public sector bodies, and businesses serving the wider Highland region. While there is steady demand for units up to 2,000 sq ft, offices over 3,000 sq ft see limited interest. Flexibility and smaller suite offerings with car parking are key to attracting tenants.

The industrial sector remains robust, with high demand, short marketing periods, rising rents and capital values—particularly in the Longman Industrial Estate. Limited supply, low vacancy rates, and minimal new development have created a landlord-favourable market. Older units are often refurbished due to the scarcity of new builds. Prime rents now exceed £10 per sq ft, with continued strong leasing and land purchase activity.

The retail sector continues to undergo a period of transition, with Eastgate Shopping Centre and parts of the High Street / Bridge Street continuing to serve as the city’s core retail hubs. While the market has faced challenges, landlords are responding proactively by offering flexible lease terms and attractive incentives, such as extended rent-free periods, to support tenant growth and encourage new occupiers.

Tayside Property Market Overview

The Tayside office and retail market has generally performed reasonably well over the last few years, particularly with premises that are compact and as such relatively affordable.  Both rental and capital values had been improving within the Tayside market.  The general lack of any new privately owned space being available within the Tayside office market has resulted in surplus stock being taken up by market demand resulting in rents and incentives starting to improve, from a Landlord point of view.

It is however difficult at this moment in time to predict what will happen within the next 12 months or so within the office / retail sector. The general commercial property market in the traditional ‘High Street’ city centre retail areas continues to face challenges with there being a number of voids and a downwards pressure seen on both rental and capital values on an ongoing basis across all sectors. Conditions have to a degree stabilised with a realignment of rental pricing to a sustainable level allowing for some continuity of occupation. This is a scenario that is not unique to Tayside and can be seen in a number of other similar major cities across the country.

Despite the wider market uncertainty the industrial, and distribution manufacturing sectors in Tayside continue to perform well into 2025. Principle demand does tend to focus on established trading estates adjacent to motorways and newer / well maintained properties which offer a greater degree of affordability and lower repairing obligations.  A lack of stock, particularly for new build premises, has helped to keep capital and rental values stable over recent years and will be an influential factor in terms of the subject’s marketability and value.

Edinburgh Property Market Overview

Office sector: The office market within Edinburgh remained steady in Q1 2025 with approximately 140,000 sq ft transacting, in line with the average of the past 5 years.  None of these deals however were above 10,000 sq ft and there has certainly been a notable shift with occupiers seeking high quality best in class space over cheaper and slightly more dated albeit good quality alternatives. There is a distinct lack of prime stock available and with few developments in the pipeline the city office market will continue to remain constrained.

Industrial Sector:  The industrial sector has remained robust within Edinburgh and the Lothians with continued rental growth. Rents appear to be now generally accepted as being between £10-£12/sq ft within the mid box range and smaller multi let estates seeking upwards of £14/sq ft.  Most notably at Capital Park where rents have been achieved in excess of £15 / sq ft for brand new accommodation.  We have also seen £20/ sq ft being hit within city centre locations and the further development/refurbishment at Mandale Park (Russell Road) also looking to command the same rent.

Generally, this has been driven by increased construction, inflation costs for developers with the above rents needing to be achieved to make new developments stack up.  That coupled with a lack of supply has propelled rents on since Covid.  There is however further development at EGI approach which could offer up to a further 693,000 sq ft of industrial space within the heart of Newbridge with various options available from 2,500 sq ft up to 350,000 sq ft which will certainly help ease supply issues.

Retail Sector: The retail sector within Edinburgh has remained resilient amid all the economic challenges, with George Street and the St James Quarter continuing to attract large national retailers. Princes Street however has gone through a decline with more tourist orientated shops in place of previous large retailers/ department stores albeit proposals are underway to revitalise this into a more vibrant mixed-use destination.

Whilst there is continued economic uncertainty ahead, projections that interest rates will continue to trend downwards should impact positively on the markets for the year ahead for both investors and occupiers alike.

You can see all of the available commercial property from Graham + Sibbald on NovaLoca here.

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