Scotland's 2.75m sq ft supply is entirely Grade B and C, leaving no Grade A space and constraining modern occupier demand.
Despite a modest increase in availability and vacancy, this is from existing lower-grade, second-hand space. Scotland’s logistics market is therefore still fundamentally undersupplied, with occupier demand increasingly focused on high-quality, ESG-compliant Grade A space.
Ross Sinclair, Director, Industrial Agency
Eurocentral Gateway – Planning secured for 200,000 sq ft of speculative development at Eurocentral Gateway encompassing two units of 80,000 and 120,000 sq ft
Supply
Across Scotland, big-box availability is 2.75 million sq ft, distributed across 10 units, which is 44% higher than the same period last year and equates to 3.81 years’ worth of supply. This has caused Scotland’s vacancy rate to rise from 8.32% to 12.01% over 12 months, an increase of 369 basis points due to subdued take-up activity, combined with a continued return of second-hand, lower-quality stock, which in H1 2026 totalled 360,304 sq ft. As a result, Scotland continues to face negative net absorption.
Dragging on take-up activity, despite geopolitical uncertainty, is perhaps more a story of supply-side constraints rather than a lack of demand. This is because, when analysing total supply, there are currently no Grade A spaces available in the market, whether new or second-hand, within the 2.75 million sq ft figure. This total is made up entirely of lower-quality stock: 77.5% is second-hand Grade C space, and the remaining 22.5% is second-hand Grade B space. This significantly restricts options for modern occupiers under ESG pressures, which are increasing as tenants adopt a ‘flight-to-quality’.
Furthermore, the availability of units within specific size ranges can also limit demand. When analysing supply, it appears there is a preference for smaller-box requirements, with five units available in the 100,000–200,000 sq ft range, gradually decreasing to three in the 200,000–300,000 sq ft range, one in the 400,000–500,000 sq ft range, and one over 500,000 sq ft. Although Scotland is not necessarily a significantly active big-box market when compared to other regions, a limited supply of units over 200,000 sq ft will certainly not assist occupiers with such needs, especially if they require Grade A standards.
Take-up
In H1, the Scottish big-box market has seen little activity, as factors such as a lack of suitable stock and geopolitical tensions have led occupiers to take longer in deciding and committing to space. Although no deals have been finalised yet, interest remains, and viewings continue. However, it is evident that occupiers are becoming more selective, and there is a clear trend towards favouring high-quality spaces, with reluctance to commit to low-Grade C units, which make up most of the current supply.
Despite such conditions and trends, there remains an opportunity in Scotland, as there is significant potential to repurpose and redevelop existing units to meet modern occupiers’ standards, whether through improved ESG credentials/EPC ratings or the increasing importance of eaves height and power requirements due to rising automation.
Development pipeline
Although there are no sites currently under active construction, in Q4 2026, we expect the commencement of a development totalling 200,000 sq ft at Eurocentral Gateway, where planning has been achieved. This is a two-unit speculative development project in North Lanarkshire, consisting of a 121,264 sq ft building, alongside a smaller mid-box unit. This could potentially pave the way for further development as occupiers compete for the limited Grade A units available. This has long been the theme in Scotland, where substandard units require refurbishment or redevelopment.