Scotland’s commercial property investment market opened 2026 on firmer footing, with first-quarter transaction volumes rising sharply from a year earlier, according to Lismore Real Estate Advisors.
The independent property advisory firm said deals completed in Q1 reached £365 million, up 81% on the same period in 2025 and 6% below the five-year average. Average lot size was £11 million.
The figures point to a more active opening to the year for Scotland’s commercial property market, despite continued uncertainty over borrowing costs and wider macroeconomic conditions. Lismore said sentiment had improved in the opening months of 2026, helped by limited supply and continued investor demand across several asset classes.
Offices were the largest contributor to quarterly volumes, accounting for 48% of the total. Lismore said Edinburgh continued to attract interest on the back of constrained supply and expectations of rental growth, while Glasgow showed signs of stabilising through completed transactions and improved take-up.
The largest deal of the quarter was Melford Capital’s acquisition of Waverleygate in Edinburgh from Kennedy Wilson for about £78 million. Other notable transactions included Aberdeen Investments’ £26.5 million purchase of Cuckoo Bridge Retail Park in Dumfries from NewRiver, Lothian Pension Fund’s £23.4 million acquisition of Hanover Buildings in Edinburgh from Oval Real Estate, and Watkin Jones’ £8.03 million purchase of a Lidl store in Finnieston, Glasgow from The Ambassador Group.
Lismore said activity was particularly concentrated in the £5 million to £15 million bracket, with property companies, private investors and family offices all active in the market. It also pointed to continued demand from French SCPIs.
Chris Macfarlane, director at Lismore, says: “The first quarter of 2026 began with renewed optimism for increased deal activity, and while macroeconomic headwinds have proven more persistent than expected, the Scottish investment market continues to show resilience.
“Activity has been particularly evident in the £5m – £15m bracket, with property companies, private investors and family offices actively targeting opportunities, alongside continued acquisition appetite from French SCPIs.
“The office sector has led the way, with Edinburgh benefiting from strong rental growth projections, driven by constrained supply, while Glasgow is showing signs of stabilisation, through a series of completed transactions and increased take-up.
“Despite ongoing geopolitical uncertainty and upward pressure on gilt yields tempering rate cut expectations, the market has adapted to volatility, with sustained demand for high-quality assets across a diverse investor base.”
Macfarlane adds: “Sectorally, office deals accounted for 48% of volumes. Logistics continues to attract strong demand on the back of compelling rental growth prospects, while PBSA appetite is pivoting toward more affordable, value-led schemes.
“Across the board, however, a persistent lack of quality stock is sustaining competitive tension, with well-positioned assets continuing to attract robust interest and pricing.”
The update suggests that, while debt pricing remains difficult to predict because of swap rate volatility, investors are still willing to back well-let and well-located assets where rental growth prospects remain intact. For the Scottish market, that is providing some support after a subdued period in which dealmaking was often slowed by uncertainty over pricing and funding.
