Scottish Industrial & Logistics report from Colliers
By Iain Davidson, Director of Colliers Industrial & Logistics team in Scotland
The Scottish industrial occupier market remains fundamentally resilient, albeit in a more measured phase following several years of exceptionally strong demand and rental growth. Current activity levels are perhaps best viewed as part of a wider market normalisation, following a sustained period of above-trend occupier activity.
Take-up across all size bands in Scotland totalled 1.5 million sq ft during the first half of 2026, with West Scotland narrowly leading the way and accounting for 59% of occupational activity. While take-up so far this year is running below last year’s volumes, we remain optimistic about the outlook for occupier demand. Enquiry levels are healthy across most sectors including engineering, manufacturing, food & drink, logistics, parcel delivery and e-commerce, and defence, and while occupiers are taking a little longer to make decisions, this reflects a more considered approach to their commitments as they navigate a higher-cost environment, rather than any lack of underlying demand.
Activity continues to be concentrated on small to mid-sized units. Notable transactions in Glasgow include Fleet Services agreeing a 10-year lease on the refurbished 37,700 sq ft facility at 99 Helen Street at a rent of £10.00 per sq ft, Spring Engineering Services acquiring Unit 3, Link Park, Newhouse, comprising 20,000 sq ft, on a 10-year lease at £12.00 per sq ft, while a 20,000 sq ft new-build warehouse on Palacecraig Street, Coatbridge was let to The Cress Company for 10 years at £11.50 per sq ft. In Edinburgh, fleet repair specialist Komoo continued its expansion by securing a 10-year lease on Units 83 and 85 at Capital Park, totalling 10,000 sq ft, at a headline rent of £16.00 per sq ft.
Supply and Rents
While broader economic conditions have weighed on occupier activity, one reason activity isn’t higher is that there simply isn’t enough quality space in the right locations.
Industrial availability across all grades and sizes currently stands at 14.6 million sq ft, equating to a vacancy rate of 5.0% (split by East Scotland, 4.0%, and West Scotland, 5.2%). Supply is, however, significantly more constrained in Scotland’s core industrial markets, with vacancy along the M8 corridor between Glasgow and Edinburgh at 2.1%. As a result, occupiers continue to face limited choice, particularly those seeking larger, modern and ready-to-occupy accommodation.
The shortage of large-scale Grade A space is particularly acute. Across Scotland, there is just 2.6 million sq ft of big-box availability, all of which is Grade B or below, leaving occupiers with virtually no modern options at the larger end of the market. This shortage remains a key challenge for businesses with expansion requirements, driving strong competition for the best-quality assets and continuing to support rental growth.
At the same time, higher construction costs and elevated borrowing rates have encouraged developers to take a more selective approach to speculative development.
Encouragingly, there is some cause for optimism on the supply front. Planning approval at Eurocentral Gateway, Eurocentral signals a welcome return of speculative development at scale, with two new industrial and logistics units of approximately 80,000 sq ft and 120,000 sq ft set to start on site this autumn. In a market where modern large-scale accommodation remains in short supply, the development will provide a timely boost to occupier choice. As joint leasing agents, Colliers are anticipating strong interest given the success of recent speculative schemes of a comparable scale, with both Westway 200 (203,000 sq ft) and Westway 90 (88,000 sq ft) securing occupiers on or before practical completion in 2025.
Against this backdrop, rental growth has remained robust. Prime rents for mid-box units in Scotland increased by 8.7% in the year to July 2026. Over the past 12 months, average Scottish industrial rents have risen by 6.1%, outperforming the UK average growth rate of 4.0%.
Overall, while occupier activity has moderated from the record levels achieved in recent years, the underlying fundamentals of the Scottish industrial market remain compelling. Limited new development, low vacancy across core locations, and sustained demand from a diverse occupier base continue to underpin the market, supporting a positive outlook for both rents and occupational activity over the medium term.
You can see the commercial property listed by Colliers on NovaLoca here.
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