The Borders Commercial Property Market
Commercial property in the Scottish Borders is a specialist field, and a rewarding one for those who understand it. The market is small enough that reputation and relationships determine outcomes, yet diverse enough to encompass everything from a Galashiels retail unit to a thousand-acre Berwickshire arable holding, from industrial space at Tweedbank to a former mill awaiting conversion in Hawick.
The region's economy rests on several pillars. Agriculture and food production remain fundamental, supported by land, buildings and processing facilities. Textiles, though diminished from their peak, retain a premium cashmere and knitwear presence with associated industrial property. Tourism and hospitality generate demand for hotels, holiday accommodation and visitor attractions. Public sector employment, centred on NHS Borders and Scottish Borders Council, anchors office demand. And increasingly, the Borders Railway corridor has attracted logistics and small business occupiers who value lower costs within reach of Edinburgh.
Market Segments and Dynamics
Retail has faced the same structural pressures affecting high streets nationally, with Galashiels, Hawick and Kelso all seeing vacancy challenges. However, independent retail has shown resilience in towns with strong tourism, particularly Melrose and Peebles, and the smaller unit sizes typical of Borders high streets suit independent occupiers better than the large-format space struggling elsewhere.
Industrial and warehousing is arguably the strongest segment. Supply is genuinely constrained, rents have risen, and demand from logistics, food production, engineering and storage occupiers consistently exceeds available stock. Tweedbank, Galashiels and the Berwickshire estates see the most activity.
Offices have been reshaped by hybrid working, with demand shifting towards smaller, higher-quality, flexible space. Large open-plan floorplates have been harder to let, while serviced and co-working provision has grown.
Agricultural land and estates represent a distinctive Borders market, with hill ground, arable land, sporting estates and forestry all trading. Values have been supported by environmental and carbon considerations alongside traditional farming returns, with natural capital markets emerging as a genuine driver.
Development land across residential and commercial uses commands premium interest where planning status is secured, given the constrained supply the local development plan creates.
Leading Commercial Property Advisers
Savills operates across Scotland with substantial rural and commercial capability relevant to the Borders. Its strength lies in larger transactions, estate and farmland sales, and providing institutional-quality valuation and research. For significant assets it offers reach into national and international buyer pools that regional agents cannot match.
Galbraith is one of the most active rural property consultancies in Scotland, with deep Borders knowledge. Its expertise spans farms and estates, forestry, renewable energy projects, natural capital advice and commercial property. For agricultural and rural commercial matters it is frequently the first call, combining market knowledge with land management expertise.
Strutt and Parker brings a strong estates and farmland practice to the Scottish market, advising on sales, acquisitions, tenancy matters and diversification. Its rural professional services, including agricultural tenancy advice and subsidy support, extend well beyond transactional agency.
Edwin Thompson covers the Borders and north of England with genuinely local commercial property expertise. Its coverage of the market across both sides of the border is a distinct advantage for occupiers considering locations in either jurisdiction, and it handles commercial agency, valuation, rating and property management.
Cushman and Wakefield Scotland and comparable national commercial agencies advise on larger institutional-grade assets and provide the investment market expertise relevant to portfolio transactions and funding valuations.
Rettie and Co maintains a Scottish commercial and residential investment practice with relevance to Borders investors, offering research-led advice on market fundamentals and investment strategy.
Scottish Borders Council Economic Development functions as a critical facilitator rather than an agency, maintaining property databases, supporting inward investment, administering business grants and managing council-owned industrial estates. Any occupier considering the region benefits from early engagement.
Business Gateway Scottish Borders supports smaller occupiers with premises search, business planning and grant navigation. For a start-up or small business taking its first commercial lease, this free support is genuinely valuable.
Local independent commercial agents operating from Galashiels, Kelso and Hawick handle the substantial volume of smaller transactions that national firms overlook. A retail unit at modest rent or a small industrial workshop is often best marketed by an agent embedded in the local business community, and their off-market knowledge is frequently superior.
Specialist forestry and natural capital advisers have grown in prominence as woodland creation, peatland restoration and carbon sequestration have become significant land uses. The Borders has substantial planting potential and this market has moved rapidly.
Practical Considerations for Occupiers and Investors
Scottish commercial leases differ from English practice in important respects, including the absence of statutory security of tenure equivalent to the English Landlord and Tenant Act renewal rights. Tacit relocation, the automatic continuation of a lease where notice is not properly served, catches out the unwary regularly. Scottish legal advice is essential.
Non-domestic rates represent a substantial occupancy cost, though the Small Business Bonus Scheme provides meaningful relief for smaller premises and many Borders occupiers pay nothing. Checking rateable value and relief eligibility before committing is straightforward and worthwhile.
Repairing obligations in Scottish commercial leases are typically full repairing and insuring, placing considerable liability on tenants. A schedule of condition agreed at the outset limits exposure and is one of the highest-value things a commercial tenant can negotiate.
Emerging Trends
Energy performance is becoming a commercial imperative as well as a regulatory one. Buildings with poor EPC ratings face growing letting and funding difficulty, and retrofit is increasingly built into investment appraisals.
Rural diversification continues to generate opportunity, with redundant agricultural buildings converting to workshops, storage, holiday accommodation and light industrial use. Planning policy is generally supportive where proposals sustain rural employment.
Natural capital is reshaping land values, with carbon, biodiversity and water quality benefits increasingly monetised alongside conventional agricultural output.
Conclusion
The Borders commercial market rewards local knowledge. Whether acquiring industrial space, disposing of a farm or negotiating a high street lease, engaging advisers who genuinely understand the region's dynamics rather than applying central belt assumptions will materially affect the outcome.
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