Demand for commercial property in Scotland continues to decline

SCOTLAND: According to the most recent Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor, conditions in the commercial real estate market in Scotland deteriorated at the end of last year. (Reported by news source)

In the fourth quarter of 2022, demand from investors and occupiers declined overall, with industrial property being the lone exception.

In Scotland, a net balance of -14% of respondents claimed that occupier demand decreased in the fourth quarter, as opposed to -9% in the third. Office and retail sectors had significant declines in demand, with net balances of -20% and -44%, respectively, whereas respondents in Scotland reported an increase in occupier demand for industrial space, with a net balance of +41%.

Additionally, 39% of respondents anticipate an increase in industrial rent during the next three months. In contrast to a net balance of +3% in the third quarter, -9% of respondents anticipate a decrease in rent over the following three months.