Scottish News
Occupier Demand and Rising Rents Set to Unlock Development in Key Sectors in 2025
Savills Development launches premier heritage project at Eagle Mills, Dundee
Savills Development is pleased to bring a remarkable development opportunity to the market in Dundee.
Located on Victoria Street, the historic Eagle Mills is set to be transformed, breathing new life into Dundee’s rich industrial heritage.
Eagle Mills has received planning per- mission for a mixed-use scheme on the site, including housing, a nursery, and commercial units.
Charlotte Ballantyne, Karen Forsyth and Dr Mark Robertson
The Scottish commercial property market is shifting as the economy edges towards stabil- ity but with new development at historically low levels the focus has continued to be on existing stock.
Rising rents, particularly in prime locations, are expected to make more refurbishment and development projects viable in 2025.
In Glasgow, city centre office take up is exceeding the five-year average reaching 464,000 sq ft in 2024 – a 32% increase on 2023. Around 50% of all deals were taken on either a fully fitted, landlord furnished or existing tenant fit out basis reflecting contin- ued strong demand for move-in-ready space.
The refurbished Aurora building on Bothwell Street set a new headline rent of £39.50 per sq ft with rents predicted to rise to low-mid £40s in 2025 for prime space.
Edinburgh saw an exceptional 843,620 sq ft of re-gear transactions while take up dropped 11% to 593,800 sq ft. Prime rent has risen again to £45.50 at Waverley Gate.
Market activity is challenged by a subdued development pipeline and buildings being lost to other uses.
Dr Mark Robertson, Ryden’s Research Partner, said: “Office rents will need to surpass £50 per sq ft to stimulate new build supply in Edinburgh. Build cost increases have slowed but continue to be an issue across commer- cial property, residential and BTR develop- ment in Scotland.”
2024 was a year of uncertainty for the energy industry, reflected in the 29% decrease in take up of office space in Aberdeen, however, the city is enjoying its best industrial market for a number of years particularly in the Dyce- Westhill-Inverurie corridor.
Scottish industrial occupiers are increasingly prioritising ESG-compliant buildings but many
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of these requirements remain unfulfilled by current stock.
With lack of supply in central Scotland pre-let activity would be expected to rise but remains relatively low, however there are a number of active discussions involving occupiers within the parcel and trade sectors.
“Greater Glasgow’s industrial vacancy rate of 3.1% is among the lowest in the UK and Edinburgh recently hit a record rent of £20 per sq ft at Causewayside. For new industrial development to pick up we need industrial rents to rise consistently and sustained inves- tor confidence.”
Scotland’s retail market is stabilising with prime high street, destination malls and retail parks sustaining or improving their market performance over more challenged locations.
“Demand from retailers is rising alongside con- tinuing diversification into food & beverage and leisure.
Footfall in Edinburgh and Glasgow city centres as well as prime shopping centres and retail parks is climbing as 2025 begins.
Investment in Scottish commercial property gained momentum in 2024 with transactions totalling £1.8bn, primarily in the industrial, hotels, living and retail warehouse sectors.
Overseas equity features prominently while UK institutions have been net sellers.
Edinburgh remains the most widely favoured city but those priced out of that market are finding opportunities in Glasgow, Aberdeen and elsewhere.
“With interest rate cuts expected in 2025 the outlook for increased investment activity is promising. Industrial and logistics will con- tinue to be the top choice while offices could recover some ground and retail may provide the highest income return of all.”
DM Hall appoints new Directors and Associates
DM Hall, one of Scotland’s leading inde- pendent firms of Chartered Surveyors, has recognised the achievements of six colleagues with the appoint- ment of two new Directors and four new Associates.
Calum Riach and Lesley Coghill, who are both part of the firm’s highly successful Inverness office, have been promoted to Director status and Brett Ferguson (Perth Office), Hannah Saunders (Kirkcaldy Office), Rachel McCall (West Commercial Valuation Team) and Craig Connery (Building Consultancy) have all been appointed as Associates of the firm.
John McHugh, Managing Partner of DM Hall, said: “It is always satisfying for a business to be able to recognise the progress and achievements of talented individuals within its ranks.”
The former Eagle Mill jute factory extends over approximately 1.7 acres and comprises two main components. The main mill block on Victoria Street, a Category B listed building, dates back to 1864 and features a distinctive coursed rubble pattern.
The structure was extended in 1930, adding Art Deco elements to its design. The interior boasts iron-framed columns carrying brick arches.
Eagle Mill offers an exceptional living experience that blends historic charm with modern convenience — a rare opportunity in Dundee. Experience the perfect mix of past and present, right in the heart of the city.
COMMERCIAL PROPERTY MONTHLY 2025
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