en.Wedoany.com Report, According to a research report released by international real estate consultancy Knight Frank, investment in Scotland's commercial property market totaled £387 million in the first quarter of 2026, approaching £390 million. Despite facing the impact of geopolitical uncertainties, the market has demonstrated considerable resilience.
Based on an analysis of Real Capital Analytics (RCA) data, first-quarter investment in Scottish commercial property was 16% below the average level since 2020. The average deal size was £16 million, reaching the second-highest level for a first quarter this decade, continuing the recent trend of "flight to quality." The average deal size between 2020 and 2026 was approximately £11 million.
Recent transactions in the Scottish commercial property market include: The Hanover Buildings on Rose Street in Edinburgh sold to the Lothian Pension Fund for £23.4 million; the Bond building on Queen Street in Glasgow transacted for over £15 million; and the Cuckoo Bridge Retail Park in Dumfries sold for £26.5 million. The retail sector was the most active, with investment reaching £216 million. Real Estate Investment Trusts (REITs) and listed property companies accounted for 60% of the investment volume, private investors for 25%, and international buyers for 11%.
Alasdair Steele, Head of Scottish Commercial at Knight Frank, said: "Uncertainty is always the enemy of deals, and this has been reflected in the Q1 2026 picture. While there was optimism at the start of the year, the Middle East conflict has undoubtedly had an impact, with investors delaying decisions as they assess the implications of higher energy prices, shipping disruption, and wider geopolitical risks." Steele added that deals are still happening—particularly at the top end of the market. "Activity is increasingly focused on prime assets, with good demand for properties offering strong fundamentals, value-add potential, or opportunities to enhance performance through active management. Edinburgh and Glasgow continue to show resilient market fundamentals, particularly for prime assets. Aberdeen also offers value for those investors who recognize the city's unique market conditions and are willing to focus on sectors aligned with its energy-oriented economy. The trajectory for the remainder of the year will be heavily influenced by the situation in the Middle East and its impact on inflation, but the Scottish commercial property market has shown its resilience in recent years and will undoubtedly continue to do so."
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