(Credit: George Iordanov-Nalbantov)

Occupier demand was reported to have risen in the office and industrial subsectors with a net balance of 5% of respondents reporting an increase in demand for office space and a net balance of 15% reporting that demand was up for industrial. A net balance of -10% of respondents reported a fall in occupier demand for retail space, meaning that overall, occupier demand edged up marginally in Q2 2025 with a net balance of 3% of respondents in Scotland reporting an increase at all-sector level.

With availability of industrial and office space reported to be constrained, a net balance of +28% of respondents in Scotland anticipate that commercial property rents will rise during the next quarter of the year. Looking at the subsectors, a net balance of 37% expects rents to rise for industrial space and a net balance of 42% expects rents for office space to increase; the highest this balance has been since March 2016.

Capital values are also expected to rise over the next three months with a net balance of 31% of respondents anticipating an increase at all sector level, up from the 11% seen in the survey previous. All three subsectors are expected to experience increases in capital values over the next quarter of the year. A net balance of 37% anticipate a rise regarding office space, 42% for industrial space, and 15% in retail space.

Surveyors remain optimistic on the 12-month outlook for capital values too. A net balance of 13% of respondents in Scotland expect an increase at an overall level. Capital values for both office and industrial space are expected to rise (net balances of 23% and 34% respectively). However capital values in retail are expected to be lower in a year’s time (a net balance of -17%).