The Scottish commercial property market is shifting (fast). While demand from occupiers is on the rise, investor confidence is cooling, and long-awaited legal reforms have stalled. Here’s what landlords, tenants and investors need to know in late 2025.
Demand Up, Confidence Down
According to the latest RICS survey, occupier demand in Scotland rose again this quarter, especially for office and industrial space. But investor sentiment has dipped, with enquiries and capital values softening.
What it means:
- Occupiers can negotiate better deals – rent-free periods and flexible terms are back on the table.
- Landlords should focus on prime, adaptable assets to stay attractive in a cautious investment climate.
Lease Termination: Tacit Relocation Lives On
Reform of Scotland’s outdated tacit relocation rules (where leases roll over automatically unless proper notice is served) has been shelved. That means the risk of unintentional lease renewal remains very real.
Action point: Don’t assume your lease ends when you think it does. Get notice dates checked early and documented clearly.
Rent Review Reform on the Horizon
While England and Wales move toward banning upwards-only rent reviews, Scotland hasn’t yet followed suit.
Still, change could come and landlords and tenants should plan for it now.
Top Tip: Build flexibility into leases. Think shorter review cycles, fixed increases or stepped rents to
stay ahead of potential reform.
The Bottom Line
The market is active, but the legal landscape is unpredictable. Whether you’re acquiring, letting or managing property, robust lease drafting and forward-looking
strategy are key.
At Blueridge Legal, we help clients stay one step ahead, from conducting health checks on leases and serving notices to structuring deals that work in today’s evolving market.
