Third-party logistics providers drive demand for UK Big Box space in H1 2025 with Midlands leading the charge

Demand from third-party logistics (3PL) providers continued to underpin the UK industrial market in the first half of 2025, with 3PLs accounting for 59% of all big-box take-up, totalling 6 million sq ft of grade-A space.

New research from real estate consultancy Avison Young highlights the resilience of the logistics sector, with 3PL take-up levels just 2% below the five-year average, despite wider economic uncertainty. The findings reinforce the strength of the sector’s core occupiers and the strategic importance of central distribution locations.

The Midlands remains the most active region, capturing 61% of 3PL leasing activity in H1 2025, reaffirming its position as the UK’s logistics heartland. Since 2021, nearly three-quarters (74%) of all 3PL space has been taken in the Midlands, underlining its long-term appeal for large-scale occupiers. Across the wider market, prime headline rents continue to rise, particularly in the Northwest, Southwest and Scotland, where average increases reached 4% over the period.

Looking at longer-term trends, 3PLs have accounted for 43% of all UK big-box take-up over the past five years, totalling 31 million sq ft. The top ten 3PL providers alone account for 12.2 million sq ft, or 39% of that total, reflecting the scale and continued importance of the sector’s largest operators. Among the most active is DHL, while Amazon’s footprint in the period stems from a single, large-scale transaction.

David Willmer, Managing Director, Industrial at Avison Young, said: “While macroeconomic headwinds persist, the fundamentals of the logistics market remain strong. We’re seeing sustained demand from 3PLs for modern, well-located space, particularly in the Midlands, which continues to lead the way.

“Headline rents are holding firm, with prime rents rising by an average of 4% in the Northwest, Scotland and the Southwest, reflecting continued confidence in key regional markets. The sector continues to present opportunity for both landlords and occupiers.”

View the latest Big Box report here.