A clear view of the market
Take-up of UK big box* industrial and logistics space reached 13 million sq ft during H1 2026, 14% higher than H1 2025 and 7.6% above the rolling five-year H1 average, highlighting the resilience of occupier demand despite ongoing economic uncertainty.
The Midlands continued to account for the largest share of leasing activity. The East Midlands accounted for 44% of total take-up (5.8 million sq ft), driven by major lettings to Bleckmann Logistics (761,000 sq ft) at Magna Park North, Lutterworth, and CEVA Logistics (508,000 sq ft) at Infinity Park, Derby. The West Midlands was the second most active region, totalling 3.1 million sq ft of take-up. Deals included ID Logistics' 673,000 sq ft unit in Rugby and Marks & Spencer’s 437,000 sq ft building at Fradley Park in Lichfield. The South West also performed strongly, with take-up reaching 1.2 million sq ft during the quarter. Third-party logistics (3PL) remained the dominant occupier sector, accounting for just over half (53%) of all take-up during the period, whilst retailers accounted for 22%, reflecting continued demand for regional distribution and fulfilment space to support retail supply chains.
Availability across the UK remained broadly stable, declining marginally by 1% to 59.3 million sq ft. Supply remained heavily concentrated in smaller units, which accounted for 88% of all available buildings. However, there are growing concerns that supply constraints in the Midlands could begin to restrict take-up, particularly for larger big-box units. Supply across the region fell by 1.8 million sq ft between Q1 and Q2, while the number of available units above 500,000 sq ft declined by 25%, leaving just nine large-scale warehouses available at the end of H1. This limited supply of larger units is likely to constrain occupier choice and could begin to restrict take-up should demand remain strong. While these pressures may lead some businesses to reassess expansion plans, demand for strategically located, modern logistics facilities remains supported by supply chain optimisation, operational resilience and the continued growth of third-party logistics providers.
Big-box investment volumes in H1 2026 totalled £750 million, marking a quieter first half of the year, with volumes 11% below H1 2025 and 12% below the rolling five-year H1 average. The subdued level of activity reflects a cautious investment environment, with sentiment continuing to be influenced by geopolitical uncertainty and wider macroeconomic pressures. Our outlook for the investment market remains unchanged and we expect activity in 2026 to remain below recent historical averages, although improving market clarity should support a gradual recovery in volumes.
