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Investment into Scottish commercial property up 50% reaching £2.2 billion in 2021


Retail witnessed significant bounce back as industrial registers strong year.

Investment into Scottish commercial property reached £2.2 billion in 2021 according to the latest Scotland Snapshot from Colliers. This figure represents an improvement of almost 50 per cent on the £1.4 billion recorded in 2020 and is above the 10-year average of £2 billion. 

Retail, which experienced a bounce back in investment saw volumes reach £530 million, a three-year high. There were particularly high levels of activity in the retail warehouse sector which reached £300 million, 75 per cent above the 10-year average.  While shopping centre investment remained almost 40 per cent below the 10-year average it did reach a five year high of £160 million – the last four years recorded volumes of below £50 million. 

The office investment market reached £640 million in 2021, up significantly on the £380 million recorded in 2020 but just shy of the 10-year average of £680 million. Cross-border capital accounted for around 45 per cent of all office investment by value last year notes Colliers. 

Patrick Ford in the National Capital Markets team at Colliers Scotland, commented: “Last year we saw a real return in investment activity across all sectors following a quiet 2020. Prime assets such as Waverleygate and Aurora generated strong interest and we’ve seen a competitive bid process return, particularly for well located, best in class office assets such as these.”

The Colliers Snapshot shows that around £340 million was transacted in the industrial sector in 2021, up from the £220 million seen in 2020 and almost 50 per cent above the 10-year average of £230 million. Yields firmed by around 100 bps in 2021 as demand remained strong and supply reduced.

Elliot Cassels also in the National Capital Markets team at Colliers Scotland, added: “Industrial and distribution remains the best performing sector in the Scottish property market and the rest of the UK. With the rising cost of new builds and strong evidence of rental growth, there has been an overall structural change and a high demand for warehousing. The rise in e-commerce and the effects of COVID-19 has accelerated this change and has resulted in positive investor demand from both domestic and overseas capital. However, within the Scottish market there has been limited prime offerings and the market has been starved of product, with most prime transactions occurring south of the border.“

In the alternatives, mixed use and hotels sector the combined investment total hit £760 million in 2021, 50 per cent above the 10-year average for £510 million. Appetite for hotels remained strong as did residential investment: in Q4 Vita Group agreed a £47 million forward funding of 60 BTR units, 20 affordable apartments and 205 managed student homes on Edinburgh’s Iona Street.

Patrick Ford continues: “The broad level of appetite, which was followed up by tangible investment into Scottish commercial property last year gives me high hopes for the coming year. As travel opens up, we’re looking forward to welcoming capital from Asia and the Middle East back to Scotland, many of whom have a significant amount of capital to allocate. Already in January we’ve seen European Private Equity firm, Henderson Park exchange contracts on Silverburn Shopping Centre as investors focus on off-market retail acquisitions, as they have seen an opportunity to invest in modern assets with immediate upside potential.” 

Download Scotland Property Snapshot

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Patrick Ford


National Capital Markets


I am an experienced Director working closely with my capital market colleagues throughout Colliers UK. I have a proven track record of deal delivery which includes some of Scotlands most high profile commercial property transactions.

I actively advise clients on property investment acquistions and disposals throughout the country and across the UK.

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Elliot Cassels


National Capital Markets


I have over 20 years ' experience working in capital markets throughtout the UK. I have a proven track record of deal delivery. I actively advise clients on property investment acquistions and disposals throughout Scotland and across the UK.

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Rebecca Allen

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I have been working in commercial property communications for over 10 years  having previously worked at CBRE and Savills.

In my role at Colliers I am responsible for the PR of National Capital Markets, London Offices and Investment Property  Management teams as well as Scotland.

My role includes:

  • Creating and exectuing PR plans for business lines that span press, marketing and digital channels
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Oliver Kolodseike

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Oliver is Head of Economic Research and leads the quarterly UK forecasting process including the publication of Colliers' Real Estate Investment Forecasts (REIF) report. He also  authors the monthly Property Snapshot and, quarterly Scotland Snapshot. Prior to joining Colliers, he worked for the Centre for Economics and Business Research and IHS Markit. Oliver holds a BA in Economics from  Georg-August University Göttingen (Germany) and an MSc in Economics from Exeter University.

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