Scottish commercial property: Why Edinburgh’s office market is ‘primed for growth’ in 2026
“We’re seeing occupiers plan further ahead than ever before” – Hannah Done, JLL Edinburgh
Edinburgh’s office market is primed for a rebound in activity during 2026, property experts have predicted, as business activity gains momentum.
Improving confidence is allowing many occupiers to “actively plan their next moves”, according to the findings of the latest study by commercial property consultancy JLL.
The capital’s office market transacted just under half a million square feet (492,829 sq ft) in 2025, according to data from the firm. This is below the ten-year average, JLL noted, with only four deals completed over 15,000 sq ft throughout the year, reflecting a “challenging year of cyclical market conditions and broader economic uncertainty”. Many businesses instead opted for short-term extensions to allow pipeline opportunities to reach the market, with 250,000 sq ft of “re-gears” taking place in addition to the new take-up reported.
JLL expects this trend to shift in 2026, given the known pipeline of occupiers already actively seeking new space and the start of a new market cycle that it believes will prompt more companies to make strategic relocation decisions.
This early engagement is said to be building pent-up demand across the market among professional services businesses - particularly finance firms. The result is a stronger pipeline of activity heading into 2026.
JLL also anticipates that flexible office space will continue to be in high demand, with the city’s shortage of stock presenting “opportunities for more capacity and new entrants”.
Extensive refurbishments are also coming through, with The Cube on Leith Street set to be Edinburgh’s only “deep retrofit” delivered in 2026 and expected to achieve premium rents, according to the property firm.
It anticipates that west Edinburgh will enjoy “improving fortunes” following a series of smaller deals in 2025. Further commitment to the area is evident, JLL added, with refurbishments planned or underway at 6 Lochside Avenue, Base and 3 Lochside Avenue, all geared towards “sustainability and employee experience”, and with rental levels significantly below those in the city centre.
Hannah Done, director at JLL in Edinburgh, said: “While the amount of space transacted on in 2025 was lower than we’d typically expect, the reality is that activity levels don’t reflect what’s happening beneath the surface. We’re seeing occupiers plan further ahead than ever before, assessing their options three, four, even five years before their leases expire.
“This strategic approach is entirely rational in a market with such limited Grade A supply. We are therefore entering 2026 with a stronger pipeline of requirements - and with improved market fundamentals expected across the UK, we anticipate this translating into increased transaction activity and continued rental growth for the best buildings.”
The firm said working habits have now stabilised in the wake of the pandemic and a switch to remote and hybrid working patterns, meaning that occupiers are more confident about their space requirements and are prioritising high quality stock that is “commute-worthy” and offers a high-quality experience for their employees.
Last week, it emerged that Scottish commercial property investment had been “highly resilient” in 2025, closing in on the £2 billion mark despite a year of uncertainty.
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