Decline in Investment in Scottish Commercial Real Estate for 2023

Investment in Scottish commercial real estate experienced a significant decline in 2023, reflecting the global economic slowdown. According to the recent Scottish Snapshot report by Colliers, the total investment plummeted by 38% compared to the previous year, reaching £1.5 billion.

The report also revealed that cross-border investment accounted for 33% of the total activity by value in 2023, showcasing a decline from the previous year where it stood at 45%. However, despite this decline, there are positive insights to be found. Scotland’s average 2023 PMI reading of 50.2 was higher than most English regions, Northern Ireland, and Wales.

Oliver Kolodseike, director in the research and economics team at Colliers, highlighted that the decline in investment was mainly due to high interest rates and falling capital values. These factors reduced the viability for debt buyers, resulting in the overall decrease. However, Kolodseike expressed optimism for the future. He anticipated a rebound in confidence from both domestic and overseas investors as interest rates and debt costs fall. This anticipated increase in confidence is predicted to take effect between May and June of this year.

Analyzing the sectors, retail emerged as the best-performing sector of 2023, accounting for a 34% share of all investments (£500 million). While this figure was slightly lower than that of 2022, it remained higher than the totals from 2019 to 2021. Offices followed closely behind, representing 27% (£400 million), and industrial investments accounted for 15% (£220 million).

In the fourth quarter, the largest transaction was the sale of The Centre in Livingston, comprising a vast retail space of 718,600 square feet, for £46 million to M Core. During this period, the total retail asset investment volume reached £105 million, with eight assets trading at an average sales price of £13 million.

While the decline in investment into Scottish commercial real estate in 2023 is noteworthy, the potential rebound and anticipated increase in confidence represent promising prospects for the industry in the coming months.





四半期では、最大の取引はリヴィングストンのザ・センターの売却で、広大な718,600平方フィートの小売スペースが4,600万ポンドでM Coreに売却されました。この期間における小売資産の総投資額は1億5000万ポンドに達し、8つの資産が平均販売価格1,300万ポンドで取引されました。