Scotland Market
Edinburgh, Glasgow & Aberdeen
Post pandemic, there is still greater flexibility with people having a blended approach to being in the office part of the week and working remotely for the other part. This has in cases, meant that less space is needed by occupiers but in looking for alternative space, occupiers have been seeking out best in class in terms of location, quality of the space and fit out, staff amenities and green credentials. These occupational requirements have very much led to a two-tier office market, whereby the new office buildings and those that have undergone extensive refurbishment are letting and achieving good rental levels, but those not providing those credentials or quality are being left behind.
At present, top rents achieved on city centre offices in Edinburgh are £45.50 psf, in Glasgow £39.50 psf and in Aberdeen £32.50 psf. The following prime deals have been achieved over the last 9 months:
| City | Prime Established Rent (£psf) | Example Deals | Year on Year Change (£psf) |
| Edinburgh | £45.50 | Waverleygate, Edinburgh (£45.50 psf) | +6% (£43.00) |
| Glasgow | £39.50 | 177 Bothwell Street, Glasgow sub lease (£39.50 psf) 120 Bothwell, Glasgow (£37.50 psf) |
0% (£39.50) |
| Aberdeen | £32.50 | 1Msq, Marischal Square, Aberdeen (£32.50 psf) | 0% (£32.50) |
Particularly in Edinburgh and Glasgow where there is limited office development coming through the pipeline, it is widely forecast that rents will continue to grow and could reach £52 psf in Edinburgh and Glasgow by 2028.
In their prime, office investments in Edinburgh with an unexpired term certain of 10 years plus, stood at 4.75%, Glasgow 5.00% and Aberdeen 6.50%. Today, they stand at 6.50%, 7.50% and 10.00% respectively. Whilst the office investment market has been quieter during 2024 and the beginning of 2025, there has been demand for well-located assets providing longer term secure income, from a mix of both UK and overseas investors.
The following key investment deals have been achieved during the last 9 months:
| City | Prime Established Net Initial Yield | Key Deals in last 6 months | Prime Established Net Initial Yield 2023 |
| Edinburgh | 6.50% | The Mint Building, St Andrew Square, Edinburgh (NIY 5.78%) Prime offices over ground and 7 upper floors with restaurant on part ground floor |
+6% (£43.00) |
| Glasgow | 7.50% | 220 High Street, Glasgow (NIY 7.50%) Offices over ground and 5 upper floors |
0% (£39.50) |
| Aberdeen | 10.00% | Annan House, 33-35 Palmerston Road, Aberdeen (NIY 10.48%) | 0% (£32.50) |
In terms of the Glasgow office market, Dale Johnstone, partner in our National Investment team, was involved in the purchase of 220 High Street on behalf of Middle Eastern Investors in Q3 of 2024. The main drivers of the purchase were the government income with an unexpired term certain of 12.5 years, a net initial yield of 7.50%, rising to circa 10.00% at review in 2026 with uncapped RPI rent reviews.
About Sara
Sara is a Senior Associate in the Commercial Valuation team and has extensive experience in carrying out valuations for loan security valuations, asset and fund valuations, valuations for accounts purposes and for probate.
Having joined Allsop commercial valuations team in 2006, Sara is based near Edinburgh and covers Scotland and parts of the north of England. Recent valuation instructions have ranged from the valuation of industrial properties in Edinburgh, Dundee, Aberdeen and Inverness, through to the valuation of retail warehousing in Ayr, Airdrie and Hamilton and the valuation of offices in Glasgow, Edinburgh and Aberdeen.
Working closely with the investment and commercial auctions team, Sara carries out individual and portfolio valuations across the sectors.
Would you like some valuation advice?
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