Big Box Bulletin
A review of occupier and investment activity in the UK big shed market.
In the first quarter of 2025, take-up of big-box (100,000 sq ft+) grade A units totalled 4.6 million sq ft, a 10% decrease compared to the same period last and a third lower than the 5-year, Q1 average. Almost two thirds of activity (63%) took place in the East Midlands driven by mega-shed acquisitions including Amazon’s 956,000 sq ft unit in Kettering and DHL’s 497,000 sq ft shed in Corby. The supply pipeline of grade A space increased by 8% compared to Q4 2024, to 55.7 million sq ft. Whilst the amount of completed speculative units declined by 8% over the quarter, there was a 14% rise in the amount of speculative space under construction, bringing much-needed new stock to the market. However, there was a sharp rise in the amount of second-hand stock returning to the market, which now accounts for 44% of the total supply pipeline.
Despite the current global economic issues, the big box investment market has improved compared to Q1 2024. Investment volumes increased by 9%, however, they remain 15% lower than the 5-year Q1 average. Prime rental growth across most regions remained stable, with the exception of Scotland, where rents increased by 3%.
