UK Big Box take-up jumps 37% as leasing momentum returns

Take‑up of UK Grade A Big Box space rose 37% year‑on‑year in Q1 2026 to 6.9m sq ft, almost three times higher than the previous quarter, according to analysis from global commercial real estate advisor Avison Young in its latest Big Box Bulletin.

The Big Box market remains confident, according to the firm, despite external economic pressures beginning to weigh on investor appetite, including higher fuel and energy costs. Occupier demand has continued to focus on established industrial hubs, with the East Midlands the principal region of activity, accounting for 50% of total take‑up.

The availability of space rose to 59.7m sq ft in Q1 2026, a 5.9% increase on the previous quarter, pointing to a gradual build up in supply. Speculative Grade A space continues to form most of the availability (55%), highlighting the prominence of developer-led schemes within the market.

Supply remains skewed towards smaller units, with 100,000–399,999 sq ft units accounting for around 87% of all available properties, pointing to a growing mismatch between occupier demand and unit availability. Demand was highest for spaces over 500,000 sq ft, as reflected in the largest transactions, which included MitLog Logistics (550,000 sq ft) and DHL (514,193 sq ft).

Supply levels could rise further throughout the year, as occupiers face increasing cost pressures driven by economic headwinds, leading some to reconsider expansion plans and potentially exit existing space if margins are significantly eroded.

Prime headline rents across all UK regions held firm in Q1, following average growth of around 4% during 2025, reflecting a mature and broadly stable occupational market.

David Willmer, Principal and Managing Director, Industrial and Logistics at Avison Young, said:

“The Big Box market has started 2026 on the front foot, with take‑up rebounding strongly after a quieter end to last year. Momentum has returned, driven by third‑party logistics operators, while the East Midlands continues to stand out as the go‑to location for large‑scale requirements.

“Although availability has increased, it remains heavily skewed towards smaller units, which is still constraining choice for occupiers seeking larger, Grade A space. As a result, competition for well‑located, large buildings remains intense.

“Prime rents have stabilised following the growth seen through 2025, pointing to a market that is fundamentally well balanced from an occupational standpoint. Investment activity has been more hesitant at the start of the year, reflecting geopolitical uncertainty and a cautious macroeconomic backdrop. That said, market fundamentals remain strong, and we expect leasing activity over the full year to broadly mirror 2025 levels.”

Read Avison Young’s Q1 2026 Big Box Bulletin in full here: www.avisonyoung.co.uk/big-box-bulletin

For further information on this release, please contact:

Leila Wynne, Tangerine Communications: [email protected]

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