A clear view of the market
Take-up of UK big box*, grade A space continued to perform strongly in Q3 2025, reaching 7.2 million sq ft, the highest level seen since Q3 2022 and 52% higher than Q3 2024. Although this is 6% below the five-year Q3 average (of 7.9 million sq ft), this marks the third successive quarter of growth, highlighting the market’s sustained momentum. The East Midlands remained the most active region, accounting for 39% of activity. Retailers accounted for the highest share of space (42%) from significant lettings to Marks & Spencer, Tesco, and Waitrose.
Availability in Q3 2025 was unchanged from the previous quarter at 55.3 million sq ft, though the number of units on the market fell slightly from 235 to 231. Supply continues to be led by second-hand space which accounts for 44% of the total, followed by speculative units at 40%, and space under construction comprising the remaining 16%. Looking at the total number of available units, the current supply pipeline remains heavily weighted towards smaller units (in the 100,000–399,999 sq ft range), representing approximately 88% of all available units. This imbalance continues to restrict options for occupiers who have large space requirements.
Although the big-box investment market continues to show subdued activity, Q3 transactions reached £389 million, marking a 30% increase compared to Q3 2024. However, volumes remain 48% below the five-year Q3 average. As with previous quarters, this figure is likely to be higher due to deals completing with undisclosed prices as well as additional deal activity still to be confirmed.
Prime headline rents held firm during the quarter, consolidating the gains seen earlier in the year when values rose by an average of 4% across the North West, Scotland, and the South West. This reflects an increasingly resilient market environment.
