JLL: Scottish Industrial Sector Reports
JLL West Coast
The Glasgow and surrounds Industrial market remains resilient with historically low levels of supply, sitting at 3.1%. This figure includes several dilapidated and unoccupiable assets, bringing the true vacancy rate closer to 2%. Good quality and particularly new build units remain in short supply which is preventing certain occupiers from making decisions. This supply issue is only set to continue with only a handful of new build units set to be delivered in 2025, notably DELTA70 which will offer 70,000 sq ft of Grade A Industrial and Logistics space. When good quality units are brought to the market, they are spending limited time on the market; Westway has witnessed excellent success with contracts exchanged for Westway 200 (202,230 sq ft) during construction and Westway 90 (88,017 sq ft) under offer shortly after practical completion.
The completion and subsequent letting of new build units has had a positive effect on the second-hand market by driving up rents. Annual rental growth in Glasgow reaccelerated last year to hit a record-high 8.9% by year-end – comfortably above long-term trends. Average warehouse rents in Glasgow stand at £7.70 per sq ft, 25.6% higher than three years ago. To achieve increased rents on second-hand stock, occupiers are expecting landlords to complete extensive refurbishments. Poor quality units, which aren’t energy efficient are spending increased periods on the market – particularly if they are 50,000 sq ft plus. Occupiers looking within this size range tend to be of a national/global level and have ESG checklists to meet. It is becoming increasingly difficult for un-refurbished, second-hand stock to satisfy such requirements. 1 York Road, Newhouse (29,795 sq ft) showcases a strong example of an exemplary refurbishment and has witnessed strong demand upon completion of works.
Contact
Scott Mcpherson
scott.mcpherson@jll.com
Andrew McCracken
andrew.d.mccracken@jll.com
JLL East Coast
The industrial property market in Edinburgh and East Scotland continues to face a significant supply shortage of high-quality units, driving market trends. This scarcity has led to increasing headline rents, prompting landlords to upgrade secondary stock to meet growing demand for good quality space.
Edinburgh’s core vacancy rate currently stands at a low 2.70%, underscoring the tight supply conditions in the market. Rents in the city have now exceeded £16.00 per square foot, with further increases expected soon due to ongoing supply constraints.
New developments are set to provide some relief. Capital Park, scheduled for completion in March 2025, will add approximately 120,000 square feet of high-specification, multi-let space to the market, increasing total stock by 0.8%. Capital Park is already pre-let at approximately 34%, with Travis Perkins already up and trading in their new c. 16,000 sq ft unit.
Landlords are embracing the opportunity to refurbish secondary stock where good quality refurbishments allow for significant increases in rents. A notable example is the industrial development on Russell Road, Edinburgh where the former Charles Henshaw & Sons facility is due to undergo a full refurbishment. Once complete in Q1/Q2 2025, it will offer around 32,000 square feet of premium, secondary multi-let Industrial space.
These developments, both new-build and refurbishments, are expected to provide some relief to the supply-starved market. However, given the robust demand and historically low vacancy rates, it is likely that the industrial property sector in Edinburgh and the wider East Scotland region will remain a landlord’s market for the foreseeable future.
Contact
Aiva Ivoskute
aiva.ivoskute@jll.com
Rhys Davies
rhys.davies@jll.com
You can view all of the industrial commercial property listed by JLL on NovaLoca here.
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