A clear view of the market
Take-up of UK big box* industrial and logistics space totalled 18.8 million sq ft during the first three quarters of 2026. While occupier demand remains resilient, activity slowed during Q3, with take-up totalling 5.8 million sq ft, 32% below Q3 2025 and 16% below the rolling five-year Q3 average. Year-to-date take-up is now 5.5% below the same period in 2025, however, a further 8.3 million sq ft remains under offer. Should these complete in Q4, take-up volumes for 2026 are likely to surpass the 22.6 million sq ft achieved in 2025.
– The Midlands continued to account for the largest share of leasing activity. The East Midlands recorded 1.8 million sq ft of take-up during Q3, while the total in the West Midlands was significantly higher, at 3.4 million sq ft, accounting for 90% of all activity during the quarter.
Key transactions included Halfords' 775,000 sq ft pre-let at Segro Park Coventry, Palletways UK's 640,000 sq ft design-and-build facility at Fradley Park and a series of transactions by Super Smart Service Ltd, which acquired more than 700,000 sq ft across three buildings.
– The continued growth of online retail is helping to underpin demand for big box space. Online sales now account for almost 29% of UK retail spending, supporting demand from both retailers and the third-party logistics operators that serve them. Third-party logistics operators accounted for 53% of take-up during the period, while retailers represented a further 29%, with occupiers such as TikTok, Temu and Super Smart Service Ltd highlighting the growing logistics requirements associated with ecommerce.
– Availability increased by almost 10% during Q3 to 65.3 million sq ft across 262 units. However, the composition of supply remains imbalanced. Despite the increase in overall availability, choice remains limited for occupiers with large-shed requirements as only 10% of available units are above 500,000 sq ft. Almost half (47%) of all available floorspace is second-hand stock.
– Big-box investment volumes totalled approximately £400 million during Q3 2026, broadly in line with the rolling five-year Q3 average. Activity remains subdued by historic standards, reflecting a cautious investment market where investors continue to favour prime assets and opportunities supported by strong occupational fundamentals. While wider economic and geopolitical uncertainty continues to influence transaction volumes, improving market clarity should support a gradual recovery in activity.
