The city has seen notable lease agreements, reflecting Edinburgh’s increasingly competitive office market. Addleshaw Goddard secured 30,000 sq ft of upgraded space at St Andrew Square, while Wood Mackenzie committed to a similar-sized pre-let at Waverley Gate.

In addition to this, Royal London’s plans for a new 75,000 sq ft headquarters in the city centre further demonstrate how organisations are responding strategically to Edinburgh’s limited Grade A office supply. Companies are increasingly planning well ahead of lease expirations to secure suitable space, taking advantage of pre-let opportunities and making early strategic decisions in this constrained market.

These larger deals were accompanied by a number of smaller transactions in the second quarter involving some of the city’s growing employers. Recent JLL analysis shows city centre transactions of 45,000 sq ft in the 2,500-5,000 sq ft bracket during H1 2025, representing an 18% increase compared to the first half of 2024.

This comes as 265,000 sq ft of space was transacted in total across Edinburgh in the first six months of the year, while 40,000 sq ft of regears were also completed across the city.

Driving the trend for smaller spaces is the city’s growing reputation as an ideal place for emerging energy and sustainability firms to develop, with it strategically located close to Scotland’s renewable energy landscape and providing access to world-class talent through nearby universities.

There have been a number of notable deals taking place in the sector, creating a new cluster with potential for knowledge spillover and collaboration. This includes the developers of one of Scotland’s largest offshore wind farms, Inch Cape Offshore, taking up newly refurbished space at New Clarendon on George Street because of its enhanced sustainability credentials.

Meanwhile, the first half of the year also saw electric bus company Ember Core establishing its headquarters at 23 Charlotte Square, further demonstrating Edinburgh’s emergence as a hub for growing energy, sustainability and technology businesses.

Angus Fitzpatrick, surveyor at JLL in Edinburgh, said: “Despite the shortage of new prime office developments in Edinburgh, we are still seeing positive trends in some areas of the market which is helping to drive activity.

“Edinburgh’s growing reputation as a place for emerging energy firms to thrive in has contributed to several notable deals taking place this year in the city.

“But with high-quality space a scarcity, the case for new developments remains strong. It’s important that businesses of all sizes factor this competition for space into their plans for the coming years as we’re increasing seeing businesses strategizing about their next office steps up to 5 years in advance of lease events.”