According to the latest figures from Knight Frank, recent investment into industrial property, office and retail space has now led Scotland’s commercial property sector to have one of its most active years yet, with £2.5 billion worth of investment.
Outperforming the five-year average, UK funds increased Scotland’s investments by 58%, jumping from £487 million to a total of £771 million. This was also a substantial 255% rise on the low of 2016 (£217 million). Investors from overseas were the most prolific purchasers in Scotland, accounting for £920m (36.8%) of the overall figure.
Around two-fifths, (£1 billion), was invested in offices around Scotland – with Aberdeen, Edinburgh and Glasgow accounting for £897 million of the money. Retail investment, on the other hand, fell from £665 million in the previous year to £550 million in 2018, reflecting similar trends seen across the rest of the UK.
Glasgow offices hit its highest level of investment in more than a decade at £468 million. This was down to large development deals at Finnieston’s Skypark campus, the acquisition of Atlantic Square on the Broomielaw, and Legal & General’s purchase of Atlantic Quay 3 for £50 million.
The Aberdeen investment market also saw £145 million worth of investment in 2018, however, this was predominately made up of one large sale; the £114 million deal for Aker Campus at Dyce.
Head of Scotland Commercial at Knight Frank, Alasdair Steele, concluded:
“It was a solid year for Scotland as we saw UK funds return to the market and overseas investors maintain their high level of interest.”