Insight into the West of Scotland Commercial Property Market By Adam Honeyman

As a key player in the West of Scotland commercial property market, our recent activity provides a strong indicator of current sector performance – particularly across industrial, office, and retail markets.

The industrial sector continues to be one of the most active across the West of Scotland, though a lack of available space is increasingly constraining activity.

Take-up remains steady but has dipped slightly below the five-year average due to a persistent shortage of new developments. Rising construction costs and cautious developer sentiment have led to a fall in supply, placing upward pressure on rents.

We see well-located, high-quality industrial space continuing to attract significant interest from both occupiers and investors. With speculative development limited, existing stock is commanding premium values.

The office market, meanwhile, is showing signs of recovery, with gradual increases in both occupier and investor demand. There’s a clear shift toward higher-quality, energy-efficient buildings as businesses reassess space needs post-pandemic.

Demand in Glasgow is strongest for Grade A space in city-centre locations, while secondary offices continue to face longer void periods. Overall, sentiment is improving, though rent growth is expected to remain modest in the short term.

The retail sector remains under pressure, with weaker occupier and investor demand across much of Scotland. However, in central Glasgow, well-located high street units are showing resilience.

We have noted renewed interest in prime locations such as Buchanan Street and the city centre, where footfall and demand are gradually returning.

While secondary retail continues to face structural challenges, we expect selective opportunities to emerge for investors seeking repositioning potential.

One of our highlights this year was our involvement in the sale and letting of 101 Centre Street, Glasgow, where we were instrumental in completing a complex transaction alongside Buccleuch Property and Sir Robert McAlpine Capital Ventures.

The 1.78-acre site – locate within Glasgow’s Southbank regeneration zone – was acquired with a short-term letting secured to Wholefoods Glasgow, enabling immediate income while longer-term redevelopment plans are considered.

The deal demonstrates our strength in structuring layered transactions that balance income and future value.

In recognition of this work, we were awarded the CoStar Q2 2025 Quarterly Deals Award, reinforcing our position as one of Scotland’s leading commercial property advisers.

In summary, our latest activity and insight reflects a market of contrasts: high demand, low supply, rising rents in industrial; gradual recovery focused on top-tier space in industrial and a mixed performance, with city-centre resilience in retail.

With strong local knowledge and a proactive approach, Shepherd continues to be at the forefront of commercial property activity across the West of Scotland.

Adam Honeyman is a Partner in Shepherd Chartered Surveyors’ Glasgow office.

You can see all of the commercial property listed by Shepherd Commercial on NovaLoca here.

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