As we move through the second half of 2025, the office occupier market across Scotland’s key cities Edinburgh, Glasgow and Aberdeen continues to evolve in response to shifting business needs, economic pressures and the enduring legacy of the pandemic. While each city presents its own dynamics, a common theme emerges: a flight to quality, constrained supply, and a growing divergence between prime and secondary stock.
Edinburgh: Resilient Demand Meets Limited Supply
Edinburgh’s office market began 2025 on a strong footing, with city centre take-up rising over 25% year-on-year in Q1. The professional services and tech sectors led the charge, each accounting for 15% of transacted space. However, the number of lease regears once a dominant feature has dropped significantly, suggesting occupiers are now more willing to commit to new space rather than renegotiate existing terms.
Despite this activity, the capital faces an acute shortage of high-quality space. Grade A vacancy sits at a mere 0.37%, and no speculative developments are currently underway. With only 38,000 sq ft of new space available across two schemes, the market is increasingly competitive. Occupiers are planning lease events five to six years in advance, and pre-letting is expected to drive the next wave of development.
According to Knight Frank’s Scotland Report 2025, prime rents have surged to £46 per sq ft, marking an increase of 30% since March 2020. The upward pressure reflects the imbalance between demand and supply, and is likely to persist given the constrained pipeline and elevated construction costs.
Glasgow: Activity Rebounds, but Supply Challenges Persist
Glasgow’s office market has seen a notable rebound in 2025, with Q1 take-up reaching 150,631 sq ft 93% higher than the same period in 2024. Grade A and Prime space accounted for 71% of this activity, underscoring the market’s preference for quality. The professional sector was particularly active, led by Pinsent Masons’ letting of 31,724 sq ft at Aurora.
Yet, the city faces its own supply challenges. While overall availability stands at 2.2 million sq ft, 72% of this is secondary stock. Grade A vacancy has dropped to 2.7%, and Prime to just 1.5%, indicating a tightening market for best-in-class space. Developers are responding cautiously, with refurbishment projects preferred over speculative builds.
Prime rents have climbed to £41.50 per sq ft, with projections suggesting further growth to £48 by 2026. This reflects both the scarcity of top-tier space and the willingness of occupiers to pay a premium for quality environments that support hybrid working and ESG goals.
Aberdeen: Stability Amid Transformation
Aberdeen’s office market presents a more subdued picture. Again, according to Knight Frank, prime rents remain stable at £32.50 per sq ft, and while demand for Grade A space persists, the city has not experienced the same rental uplift seen in the central belt.
With legacy stock increasingly misaligned with modern occupier expectations, change-of-use proposals are gaining traction. This trend reflects broader market dynamics, where ESG compliance and urban regeneration are reshaping the city’s commercial landscape. However, it hasn't been without its challenges. Perhaps most notably, attempts to convert Total's former office premises at Loirston House into specialist residential accommodation were met with a refusal of planning permission.
Investor sentiment in Aberdeen has improved, with increased demand recorded in 2024 and cautious optimism for 2025. Yet, the development pipeline remains modest, and speculative activity is limited, suggesting that supply constraints may continue to shape occupier strategies.
Key Themes Across the Central Belt and Beyond
Across Scotland, the office market is increasingly divided. Occupiers are prioritising flexibility, amenities, and sustainability—qualities often absent in older stock. As a result, secondary space is struggling to attract tenants unless significantly repositioned.
Regears remain a feature, particularly in Edinburgh, where they accounted for 22% of activity in 2024. This reflects both uncertainty around future space needs and the limited availability of suitable alternatives. Landlords are responding by offering smaller, fitted suites and serviced options to appeal to SMEs and hybrid-working models.
Development remains constrained. With only 205,000 sq ft of office space under construction across Scotland’s key markets, and pre-let requirements rising to 50%, the supply of new space is unlikely to meet demand in the short term.
Conclusion: Strategic Planning Essential
For occupiers, the message is clear: act early, be flexible, and prioritise quality. The scarcity of Grade A space, particularly in Edinburgh and Glasgow, means that forward planning is no longer optional it is essential. For landlords and developers, the challenge lies in delivering the kind of space that aligns with modern business needs, while navigating rising costs and regulatory pressures.
As we look ahead, the Scottish office market offers opportunity but only for those prepared to adapt. Whether through refurbishment, repositioning, or strategic leasing, success will depend on understanding the evolving demands of occupiers and responding accordingly.
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