Office sector:
The Inverness office market is relatively small and comprises traditional city-centre offices alongside established peripheral business parks. The market has seen increased activity and enquiry levels over the past 12–18 months, with a number of transactions reducing overall availability. Demand is strongest for modern, well-located offices, particularly those offering good parking and flexible accommodation.
The shift towards hybrid working has changed occupier requirements, although businesses continue to recognise the importance of attractive, well-equipped offices in supporting staff and client experience. Refurbished buildings have generally performed well, particularly where good parking is available.
Demand is strongest for smaller suites between 500 and 1,500 sq ft, with steady demand extending to around 2,000 sq ft. These are attracting interest from professional firms, public sector bodies and businesses serving the wider Highland region. In contrast, there is limited demand for offices exceeding 3,000 sq ft. Overall, flexibility, quality and parking remain key factors in securing occupiers, with the market showing positive signs of recovery.
Industrial sector:
Inverness’ industrial market remains strong, with the city benefiting from its position as the principal commercial and employment centre in the North of Scotland. Demand for industrial and trade accommodation is particularly strong within the Longman Industrial Estate, where restricted supply and limited development land continue to support rental and capital values.
Industrial vacancy levels across Inverness remain relatively low, reflecting strong occupier demand and a favourable market for landlords. The limited availability of new-build accommodation has resulted in older units being refurbished, upgraded and extended to meet occupier requirements, rather than businesses relocating elsewhere. While locations such as Dalcross and Inverness Airport Business Park are seeing increased activity, this has yet to materially impact demand for the established industrial estates.
Rental growth has been notable over the past 24 months, with prime rents now exceeding £10 per sq ft and tenant incentives generally limited. Strong demand is expected to continue to underpin rental and land values, particularly within the Longman, which remains Inverness’ premier industrial location.
Retail sector:
Inverness’ retail market continues to experience a period of transition, with demand varying across different parts of the city centre. While some vacant properties remain available and rental levels have generally remained stable in recent years, landlords are increasingly offering flexible lease terms and incentives to attract new occupiers. This provides opportunities for businesses seeking a presence within the city centre and supports ongoing tenant activity.
Inverness retains a diverse retail offering, centred around Eastgate Shopping Centre, the Victorian Market, and the High Street, Bridge Street and Old Town areas. Eastgate remains an important retail hub, while the £1.8 million transformation of the Victorian Market into a food hall has been particularly successful, generating increased footfall and creating a more vibrant destination.
Tourism remains a key driver of city-centre activity, particularly during the summer months, supporting demand for souvenir and other tourism-related retailers. Wider investment, including the £39 million redevelopment of Inverness Castle, should further enhance the city’s appeal and visitor experience.
Summary
Overall, the market presents a mixture of opportunities and challenges, with continued investment, strong tourism and the city’s established retail destinations providing a positive platform for future growth.
