Addition of one unit alone rises supply 179% quarter-on-quarter
With the existing supply and development pipeline being highly constrained, coupled with key occupational specifics, the BTS route appears to be the only viable option for meeting the strong prevailing demand for requirements exceeding 100,000 sq ft
Ross Sinclair, Director, Industrial Agency
GLA1 in Gourock, where a 296,273 sq ft unit is available to lease
Supply
Across Scotland, the supply of units over 100,000 sq ft stands at 1.90 million sq ft, spread across six units, 64% higher than the same period last year. In Q2 2025 alone, supply rose 179% quarter-on-quarter, as the former HarperCollins unit was brought to market, comprising 860,892 sq ft of low-quality Grade C space. This unit alone accounts for 45% of the overall supply.
There is no Grade A space available in Scotland. Of the vacant supply, 33% is second-hand Grade B space, while the remaining 67% is second-hand, low-quality Grade C space. Regarding unit sizes, three units are available in the 100,000–200,000 sq ft range, two in the 200,000–300,000 sq ft range, and one in the 500,000 sq ft+ range.
With a shortage of modernised stock, many occupiers are increasingly concerned about rising power demands to meet future energy needs and the ability to improve environmental performance, especially as we advance towards carbon net-zero targets. Savills indicates that this will render some units occupationally obsolete, further reducing the choice and overall availability of functional stock. Considering this, Savills has revised its rental growth forecasts upwards, estimating a 3.9% annual increase over the next five years in our baseline scenario.
Take-up
In H1 2025, take-up reached 516,026 sq ft across three transactions. However, with no prime or Grade A second-hand stock available, take-up has consisted of lower-quality second-hand buildings, with 41% of the space let being Grade B and 59% Grade C.
The largest deal so far this year was J&D Wilkes’ acquisition of the 211,404 sq ft Foote & Telkes Building located at the Michelin Scotland Innovation Parc (MSIP) in Dundee. By size range, there has been one transaction within the 100,000–200,000 sq ft size range and two units transacted within the 200,000–300,000 sq ft size range.
Manufacturing-related occupiers made up 61% of total activity so far in 2025, with the ‘other’ sector at 39%. To date in 2025, there has been no activity from 3PL firms or parcel companies.
Development pipeline
There has been no change in the speculative development pipeline following the recent completion of two units in the past twelve months at Westway in Renfrew, one in excess of 100,000 sq ft (Westway 200 – 202,000 sq ft). Both were let very quickly following Practical Completion. However, Savills is monitoring approximately 271 acres of deliverable land, capable of providing an additional 5.33 million sq ft, which could offer BTS options to help meet some of that demand that is waiting in the wings.