Big Box Bulletin
A review of occupier and investment activity in the UK big shed market.
Take-up of big-box* space totalled 21.2 million sq ft in 2024, 11% ahead of last year - a result helped by improving occupier sentiment, which fed through the year and turned into deal-making. Take-up volumes for the year do, however, remain 33% below their five-year average, but this comparison is skewed due to exceptional demand during the global pandemic. By geography, the Midlands remains the hotbed of activity, especially prime locations within the 'Golden Triangle' that account for 42% of all leasing activity this year.
At the end of 2024, Grade-A supply totalled 51.6 million sq ft (spread across 220 units), an increase of 9% compared to last year. By number of units, 45% are completed speculative units, 38% are second-hand, and the remaining 17% are units under construction. However, there is a distinct lack of larger mega sheds (400,000 sq ft+), with only 10% in the current supply pipeline above this size, making larger requirements challenging to satisfy.
Investment into the single-let big-box distribution market has been limited this year, with investors remaining cautious amid macroeconomic headwinds. As a result, 2024's result of £1.04bn was 12% lower than 2023 and 62% lower than the 5-year average. However, much like leasing volumes, this calculation remains largely skewed by the pandemic-driven boom in investment into the sector, with investors drawn to the sector's robust fundamentals—fundamentals that remain to date. This is evident as we saw a pickup in activity over Q4 with £423 million spent on single-let distribution units, up by 116% quarter-on-quarter, which bodes well going into 2025, when further activity is anticipated.
*Grade A Big-Box (Units over 100,000 sq ft)
