Growing Demand for Commercial Property Around Edinburgh as Businesses Look Beyond the City Centre

Demand for commercial property around Edinburgh’s city fringe and surrounding areas continues to grow, with Allied Surveyors Scotland completing nearly 25,000 sq ft of lettings across 20 transactions over the past two quarters.

The deals, completed by the firm’s Edinburgh commercial property team, cover a mix of office, industrial and leisure premises across Edinburgh, East Lothian and Midlothian.

The activity reflects a wider shift in the market, with businesses increasingly seeking flexible and cost-effective premises in well-connected locations outside Edinburgh city centre.

Businesses Choosing Commercial Space Outside Edinburgh

Much of the recent demand has come from small and medium-sized businesses seeking office space and business premises in East Lothian and Midlothian.

Iain Mercer, Head of Commercial Agency – Scotland at Allied Surveyors Scotland, says the increase in lettings across the Lothians highlights the growing appeal of commercial property outside Edinburgh city centre.

“The surge in demand for business space in locations on the periphery of Edinburgh city centre is a trend we have continued to see develop over some time now.

Faced with rising business costs, companies are securing flexible leases to ensure they remain nimble, and we’re seeing the necessity for larger office space continue to decline.”

Well-located business centres with flexible lease terms, car parking and modern facilities are proving particularly popular with start-ups and growing businesses.

Strong Letting Activity Across East Lothian and Midlothian

A significant proportion of recent commercial property lettings have taken place across East Lothian and Midlothian, highlighting the strength of the market in these areas.

Recent transactions include:

• Gensource, a renewable energy company, relocating its head office to Newhailes Business Park in Musselburgh, taking 1,200 sq ft of office space.
• Forza Academy, a martial arts gym, securing 2,100 sq ft at Harbour Point in Musselburgh.
• Citizens Advice Bureau Dalkeith taking a five-year lease on 1,100 sq ft of office space at 29 Elmfield Court in Dalkeith.
• Sports Medi UK Ltd taking 678 sq ft at Vineyard Business Centre near Pathhead.

Additional lettings have completed at several key East Lothian business locations, including:

• Merryfield Business Centre, Macmerry
• 48 Court Street, Haddington
• 21 Eskside West, Musselburgh

Businesses such as Boots n Pieces, Fidra Lettings and Fern Landscaping have all committed to new commercial premises across the region.

Continued Activity in Edinburgh Commercial Property Market

Within Edinburgh itself, demand remains strong in established commercial areas.

In Leith, Xi Engineering Consultants has taken a 2,000 sq ft warehouse at Sandport Place, while Edinburgh Cashmere has secured 1,400 sq ft of office space at 3 Queen Charlotte Lane.

Largest Transaction Completed in Bathgate

The largest single letting completed during the period was in Bathgate, where Sandcastle Softplay secured 12,500 sq ft of space on Whitburn Road, converting a former nightclub into a new family leisure destination.

Flexible Business Centres Driving Demand

According to Allied Surveyors Scotland, flexible business centres outside Edinburgh city centre continue to perform strongly, as businesses prioritise accessibility, parking and cost efficiency.

As working patterns evolve and businesses reassess space requirements, locations across East Lothian, Midlothian and West Lothian are becoming increasingly attractive alternatives to traditional city centre offices.

Allied Surveyors Scotland is one of Scotland’s largest independent firms of Chartered Surveyors, with 30 offices across the country, including dedicated commercial property teams in Edinburgh, Glasgow and Inverness.