Prime shopping streets recover with few vacancies – Daily Business

Two of Scotland’s best known shopping streets have close to no empty premises in what is seen as an encouraging recovery in bricks and mortar retail.

Vacancy levels on Buchanan Street in Glasgow and George Street in Edinburgh are virtually zero.

Princes Street, which has suffered in recent years from the closure of Jenners, Debenhams, House of Fraser, Cath Kidston and even Poundland, is below 10% and continuing to fall.

The latest investor research by Lismore Real Estate Advisors indicates growing confidence in Scotland’s prime city centre retail and leisure markets.

Strong tenant demand, attractive entry yields and signs of rental growth are helping to re-establish the investment rationale for these markets.

Lismore’s quarterly investor sentiment survey highlights that 59% of respondents would consider investing in high street retail, with the strongest appetite among property companies (65%), followed by investment managers (56%).

Funds remain more cautious, with only half expressing interest, often citing small lot sizes as a barrier. Across all groups, investors stressed that opportunities must be in prime micro-locations, particularly Scotland’s key high streets, where rebased rents and demonstrable demand create a compelling case.

Secondary and tertiary towns remain largely out of favour.

Chris Thornton, senior associate at Lismore said: “We’re seeing renewed momentum in retail investment, as pricing becomes compelling relative to sectors like logistics.

“The future of high streets lies in making them true destinations, blending retail, leisure, hospitality and culture.

“Prime streets and dominant centres are already showing rental growth as retailers compete for the best space, but success remains highly location-specific and reliant on mixed-use strategies alongside public sector engagement.

“Investor sentiment towards prime retail and leisure in Glasgow and Edinburgh is clearly improving, but selectivity remains key. With strong demand for the very best streets and rebased rents supporting early signs of growth, there are reasons for cautious optimism.”