Scotland accounted for 6.3% (50) of all new UK retail warehouse openings in 2024, falling below the UK regional average of 72 and its own three year average of 67 deals. Despite this, demand remains strong reflecting a broader national pattern where supply is limited to failing tenant portfolios with no new space being developed.

Scotland saw 39 deals in H1 2025, with 22 in Q1 and 17 in Q2. Savills notes that the pace slowed as the units that became available as a result of the Carpetright and Homebase administrations were re-let quickly and availability fell once again.

Looking ahead, if the level of activity remains consistent, Scotland is on track to reach approximately 88 new lettings by year end. This would see the market perform considerably better, with a 76% increase on last year’s total. However, this highlights the distinction between appetite for space versus what will or can be achieved based on actual supply levels.

In the last 18 months, the most active operators in Scotland have been Home Bargains, acquiring six units, followed by B&M and Sainsbury’s who have each taken three. Other lettings of note include The Range acquiring two former Homebase units at Auldhouse Retail Park in Glasgow and Craigleith Retail Park in Edinburgh.

Whilst Wickes opened a newly built store at Westhill on the outskirts of Aberdeen and agreed an interposed letting over the Homebase unit at Halbeath Retail Park in Dunfermline prior to its Company Voluntary Arrangement (CVA).

This is largely reflective of the UK market as a whole, with three of these retailers featuring in the top 15 most acquisitive operators for 2024 and 2025 so far on a national basis.

Mike Spens, director in the out-of-town retail team at Savills Scotland, said: “There remains considerable appetite from out-of-town retail operators in Scotland, however with vacancy rates falling below the UK national average, an acute lack of stock is hampering further letting activity.

“For the space that is available, we are continuing to see upward pressure on rents in certain towns, and a competitive leasing environment, which was evident in Dunfermline when Wickes’ interposed lease saw a 24% increase in the passing rent. With the shift in focus towards affordability and convenience, the region could be well-positioned to benefit from sustained demand throughout 2025 and beyond, if the issue of supply can be resolved.”

Savills reports that the UK retail warehouse vacancy rose slightly to 5% following last year’s administrations, but has since fallen back to 4.7% and continues to fall. In Scotland, this is even tighter at 4.3%, making it increasingly difficult for expanding operators to secure space. This scarcity is expected to support rental values and, in certain markets, drive rental growth.

In 2024, net effective rents across the UK rose by 7% to an average of £21 per sq ft (excluding F&B). However, undersupplied markets, defined as those with less than 5.95  sq ft of retail warehouse space per capita, saw average rental growth of 14.8%, reaching £22.53 per sq ft. Scotland includes several such markets with significant catchment populations and limited supply, with all 10 key locations falling below this figure.

Sam Arrowsmith, director in the research team at Savills, added: “Our latest research highlights a critical shortage of available retail warehouse space, with vacancy rates at a historic low. This scarcity, coupled with a strong demand for out-of-town retail locations, has led to upward pressure on rental values. The recent Poundland restructure will only see approximately 50 units returned to the sector nationally. Not enough to satisfy the appetite demonstrated in Q1 take-up.”