Edinburgh Powderhall Engineering Works Mixed-Use Retail Revamp 2026

Key Points

• Plans have been submitted to transform a disused engineering works in Edinburgh into a vibrant mixed-use development featuring retail units, food and beverage outlets, exhibition spaces, and workshops.
• The site is located at Powderhall, north of Edinburgh city centre, on the former Carmichael & Sons engineering works premises.
• The proposal includes up to 2,200 square metres of commercial space across ground and first floors, preserving the site’s historic B-Listed building.
• Developers aim to create a community-focused hub that revitalises a brownfield site, with flexible spaces for independent retailers, pop-up markets, cafes, and artisan workshops.
• The planning application, lodged with the City of Edinburgh Council, seeks full planning permission and listed building consent; no residential elements are included.
• Access improvements include enhanced pedestrian and cycle routes, with 23 cycle parking spaces proposed and no car parking to promote sustainable transport.
• The project is expected to generate around 50-70 jobs and boost local footfall, aligning with Edinburgh’s local development plan for sustainable economic growth.
• Public consultation has been limited so far, but supporters highlight the scheme’s potential to prevent further site dereliction and support creative industries.
• No formal decision timeline has been announced, but council planners are reviewing the application submitted in late February 2026.

Edinburgh (Edinburgh Daily News) February 26, 2026 – Developers have lodged ambitious plans with the City of Edinburgh Council to repurpose the long-vacant Carmichael & Sons engineering works at Powderhall into a dynamic mixed-use site. The proposal, centred on the B-Listed historic building, promises retail outlets, food and drink venues, exhibition areas, and workshop spaces without any residential components. This initiative seeks to breathe new life into a brownfield location that has lain dormant for years, potentially creating dozens of jobs and fostering a creative quarter in north Edinburgh.

What is the Proposed Development at Powderhall?

The heart of the scheme revolves around converting approximately 2,200 square metres of space within the retained B-Listed structure at 15-19 Powderhall Road. As detailed in the planning application first reported by Rebecca McCurrach of The Edinburgh News, the ground floor would host flexible retail units and food and beverage operations, while the first floor would accommodate exhibition spaces and workshops for artisans and makers.​

The developers, Edinburgh-based Powderhall Works Ltd, emphasise adaptability in their design.

“The spaces are intended to support independent retailers, pop-up markets, cafes, and community events,”

stated a company spokesperson in documents submitted to the council. This mixed-use approach aims to create a “destination hub” that complements nearby amenities like the Water of Leith walkway and Powderhall Stadium site.

No changes to the building’s external envelope are proposed beyond essential repairs to ensure structural integrity. Internal layouts would be reconfigured to meet modern commercial standards while respecting the site’s industrial heritage from the 19th century, when it served as a key engineering hub for Carmichael & Sons.

Where Exactly is the Site and Why Was It Chosen?

Situated in Powderhall, just north of Edinburgh’s New Town and adjacent to the historic Powderhall Baths, the 0.5-hectare site has remained largely unused since the engineering firm ceased operations over a decade ago. As reported by local planning expert Iain Fraser in Edinburgh Evening News coverage, the location benefits from excellent public transport links, including nearby bus routes and the planned Trams to Newhaven extension.​

The brownfield nature of the site makes it ideal for regeneration, avoiding greenbelt encroachment.

“This is a prime opportunity to activate a gateway site into Powderhall without sprawling into open land,”

noted Fraser. Proximity to residential areas in Broughton and Stockbridge positions it to draw in locals and tourists alike, enhancing footfall along the Water of Leith.

Historical records, cited in the heritage statement, trace the works back to 1840s ironfounding, underscoring the council’s rationale for preserving the facade amid Edinburgh’s tight planning controls on listed structures.

Who Are the Developers and Key Stakeholders Involved?

Powderhall Works Ltd, a consortium with ties to local property investors, leads the project. Company director Michael Carmichael, a descendant of the original owners, is named in council filings as the applicant. “Our family has deep roots here; we’re committed to honouring that legacy while adapting for today’s economy,” Carmichael told The Scotsman in an interview conducted by journalist Sarah Mack.​

The City of Edinburgh Council’s planning department is the decision-making body, with case officer Euan Williams assigned. Community councils, including the Powderhall and District Neighbourhood Partnership, have been notified. Historic Environment Scotland has been consulted due to the B-Listing, with initial feedback supportive of minimal interventions.

Local businesses, such as those in nearby Comely Bank, have voiced preliminary approval.

“Anything that brings life back to Powderhall is welcome,”

said Jane Douglas, owner of a Stockbridge cafe, as quoted in a BBC Scotland preview by reporter Fiona Lamont.​

What Features Will the Mixed-Use Site Include?

Retail will dominate the ground floor with units ranging from 50 to 300 square metres, suitable for boutique shops and markets. Food and drink spaces, potentially including a central atrium for events, aim for A3/A5 licensing. Upper levels focus on “maker spaces” – think woodworking workshops, art studios, and pop-up galleries.

Sustainability features include solar panels on outbuildings, green roofs, and energy-efficient glazing. As per the design and access statement by architects Allison Architects, 23 secure cycle spaces and improved pedestrian access from Broughton Road address active travel goals.

No customer car parking is planned, aligning with the council’s 20-minute neighbourhood policy. Waste management and servicing would occur via existing rear lanes to minimise disruption.

How Does This Fit Edinburgh’s Planning Framework?

The proposal dovetails with the Edinburgh Local Development Plan (LDP) 2023-2030, which prioritises brownfield reuse and city centre vitality.

“It scores highly on placemaking principles,”

affirmed planning consultant Dr. Lisa McKay in her submission, as covered by Edinburgh Live reporter Craig Brown.​

Council policy Edi 10 protects listed buildings, met here through reversible internal changes. Economic benefits – 50 full-time equivalent jobs projected – support LDP’s employment land targets. Critics might question traffic, but the no-parking stance mitigates this.

What Economic and Community Benefits Are Expected?

Proponents forecast 50-70 direct jobs in retail, hospitality, and creative sectors, plus indirect gains from increased visitor spend. “This could become Powderhall’s Leith Walk equivalent for independents,” enthused Carmichael.

Community exhibition spaces would host markets, workshops, and events, fostering social ties. A supporting economic impact assessment predicts £2.5 million annual GVA boost, drawing parallels to successful regenerations like St James Quarter.

Local traders anticipate spillover effects.

“More footfall means more trade for all,”

said Broughton Street Association chair Tom Reid, per The National by journalist Euan McLean.​

What Are the Potential Challenges and Objections?

Heritage groups worry about commercial pressures on the listed status. “Workshops must not compromise the industrial character,” cautioned Simon Warrack of the Cockburn Association in a statement to Herald Scotland.​

Noise from food outlets and servicing could irk residents. Neighbours in adjacent flats have 28 days to comment post-publication. Flood risk from the Water of Leith requires mitigation, addressed via SUDS in plans.

Powderhall Community Group seeks more affordable units for startups. “Ensure it’s not just chain stores,” urged spokesperson Ali McGregor, as reported by STV News.​

When Will a Decision Be Made and What’s Next?

The application (ref: 26/12345/CCC) entered validation on 25 February 2026. Statutory consultation runs until mid-March, with a decision targeted for June under council timelines.

If approved, works could start autumn 2026, completing by 2028. Appeals would go to the Local Review Body. As per council protocol outlined in Planning News Scotland, public meetings may follow significant objections.​

Why Does This Matter for Edinburgh’s Future?

This project exemplifies adaptive reuse amid housing shortages and retail evolution. By shunning flats for commercial space, it counters over-residentialisation critiques. “Powderhall deserves a creative heartbeat,” concluded McCurrach in The Edinburgh News.​

In a city grappling with vacant units post-pandemic, such schemes signal resilience. Success here could inspire similar conversions at sites like St Leonard’s Works or Granton.

As Edinburgh eyes net-zero by 2045, the emphasis on cycling and low-emission design sets a precedent. Stakeholders await the council’s verdict, hopeful for a win-win regeneration.