Revamping Victoria Quay: A Vision for Leith's Economic Revival

London, United Kingdom Aug 27, 2026 ALN: A rarely used Scottish Government office building in Edinburgh could be transformed into a multi-purpose development designed to boost Leith’s economy as civil servants favour remote working.

Victoria Quay, the four-storey building situated on Leith’s waterfront, has office space for around 3,000 civil servants.

However, official figures show that it was just 27% occupied in June 2026, months after core civil servants were asked to return to the office at least two days per week.

Since the hybrid working policy was introduced in October, the average monthly occupancy at the Leith offices never exceeded 28.5%.

Despite those occupancy figures, Victoria Quay cost the Scottish Government around £9.5 million to operate since 2020-21, including more than £1 million in planned maintenance costs. In 2024-25 alone, electricity cost £715,749.

Scottish ministers have faced pressure for a number of years to open up part of the 35,000 square metre building to other businesses or affordable housing.

Out of Office – The Herald’s commitment to expose the waste in the Scottish Government’s return to work strategy - has led leading architect Jeremy Scott, chairman and head of design at MLA Architects in Edinburgh, to reimagine the “vibrant” office space.

Victoria Quay - Scottish Government building. (Image: Newsquest)

Victoria Quay, first opened in 1996, was originally occupied by the Scottish Office before becoming part of the Scottish Executive in 1999. It replaced the unpopular 1970s Brutalist office block at New St Andrew’s House.

Mr. Scott said the Victoria Quay building was “ahead of its time” because of its sustainable design.

He said: “The building has lots of potential. In actual fact, the whole building could almost create a new community in Leith. It’s so big that I don’t think it would be one use or the other.”

The suggestions include more restaurants, hotels, residential space as well as maintaining existing office space for civil servants to work from the office when necessary.

“What is unusual about the building, really, is normally you get buildings where you’re trying to find one use to fit into another use because the buildings just aren’t big enough. But this one, you could make this amazing space for Leith,” he added.

“It could be such a vibrant space for Edinburgh. It would be way too big to limit it to just one use.”

The building’s entryway could be revamped to connect it to the water, linking it to nearby residential property and water sports.

Mr. Scott added: “When you look at a building like Victoria Quay – when it was built, the Ocean Terminal shopping centre wasn’t there, but Victoria Quay became a catalyst for the area.

New St Andrew's House, where the Scottish Office was previously based before moving to Victoria Quay (Image: Archive)

“Since then, so much has changed. You’ve got build-to-rent flats, private, for sale homes, the shopping centre has shrunk, you’ve got a distillery and I think Leith, 25 to 30 years later, it’s such an attractive waterfront. Right next door to it, you’ve got bars, Tom Kitchin’s restaurant. It’s vibrant.”

He urged the Scottish Government to consult with the local community before taking any decisions on its sale.

“Ultimately, it’s our money that created the building. But it can be marvellous. At the end of the day, it’s paid for by taxpayers, right? So shouldn’t we have a say about what goes in it?

“This building wouldn’t need to be knocked down. The heights of the building would suit any of these buildings. So you’re saving on embodied carbon and the frame can be used as it is, right now.

“The most important thing is you’re keeping buildings, recycling them and putting that back into the economy.”

These kinds of developments are happening all over Edinburgh, and across the UK.

MLA Architects, under Scott, revamped the “tired” former HMRC building on Drumsheugh Gardens in Edinburgh, transforming it into the 37,000 sq ft Resident Edinburgh hotel, while other buildings in the city are being turned into flats.

Any repurposing of Victoria Quay would be welcomed by Gordon Maloney, chair of Living Rent Edinburgh, if it tackled the housing emergency.

He said: “The Scottish Government should be exploring all avenues to combat the housing emergency Scotland finds itself in. This is something we have been saying for years: in order to ensure that everybody has a safe, secure, affordable place to live, this government needs to empower local authorities to use existing buildings to their full potential.

“Where empty office buildings can be repurposed as affordable housing, it is vital that the housing is fit to be made into a home. This means ensuring that the buildings are fit for purpose and good quality, surrounded by transport links and supermarkets, and are homes that people want to live in.”

Ivan McKee – who is now the Public Service Reform Secretary tasked with slimming the civil service – told The Herald, alongside SNP MSP Ben MacPherson in 2023, that a vast proportion of Victoria Quay should be opened up to tech and creative businesses because of around 80% of the building sitting empty.

The Scottish Government has said its office estate is “continuously under review to allow us to plan for affordable, inclusive, accessible, modern, secure, energy efficient buildings of the right size to meet our changing needs and net zero ambitions, as well as to ensure best value for taxpayers’ money.”

A spokeswoman added: “The Scottish Government Core Estate Strategy includes a co-ordinated and consultative approach across the public sector when planning for the future use of government buildings that maximises co-location opportunities and available capacity.”