Third consecutive quarter of take-up growth for Big Box market – but supply challenges linger

The UK Big Box market recorded Grade A take-up of 7.2 million sq ft between July and September 2025, marking a third consecutive quarter of growth and the highest level of activity since Q3 2022. The figures highlight sustained momentum across the sector, but supply constraints could threaten to slow progress, according to real estate advisor Avison Young.

The East Midlands continues to dominate as the most active region, accounting for 39% of all take-up. Most of this activity was located at the Prologis-owned DIRFT in Daventry. Occupiers include Marks & Spencer (acquiring a 1.3m sq ft warehouse), GXO (acquiring a 328,000 sq ft logistics warehouse) and XPO (acquiring a 280,000 sq ft unit).

There was also renewed momentum in the South East during Q3, which saw occupier demand at its highest level since Q4 2023, totalling 1.8 million sq ft, accounting for almost a quarter of all take-up.

Across the UK, retail occupiers took the highest share of space at 42%, driven by significant deals involving Furniture Village, Tesco, and Marks & Spencer – the latter of which acquired a 1.3 million sq ft facility in Northamptonshire.

Overall, year-to-date take-up is 9% higher than 2024, with full-year volumes anticipated to surpass last year’s total. Investment volumes in Q3 reached £389 million, up 30% year-on-year but still 48% below the five-year Q3 average.

Despite demand peaking, there are warning signs of challenges on the horizon. Supply continues to be unchanged from the previous quarter at 55.3 million sq ft, dominated by second-hand units at 44% of the total.

Only 16% of space is under construction, limiting the immediate options for occupiers, and the current supply pipeline is also heavily weighted towards smaller units (100,000 sq ft – 399,999 sq ft), which made up almost nine in every ten units available (88%), severely restricting options for occupiers with larger space requirements.

With occupier appetite showing no sign of slowing, the market’s next test will be how quickly new, larger-scale stock can come forward to meet demand. Sustained take-up growth is a positive signal, but without fresh supply, that momentum could soon be constrained.

David Willmer, Principal and Managing Director, Industrial and Logistics at Avison Young, said:
“We’ve seen another strong quarter of big box occupier activity - just 6% below the five-year Q3 average - underpinned by strong retail demand. The East Midlands continues to cement its position as the UK’s industrial heartland, but the South East is now firmly on the rise, with a notable surge in activity.

“While the outlook for the sector remains highly positive, with take-up expected to surpass 2024 levels, persistent stock constraints are becoming a growing concern. Only around one in ten units currently on the market exceeds 400,000 sq ft - a real challenge given the unprecedented demand for larger retail space, exemplified by Marks & Spencer’s 1.3m sq ft facility in Northamptonshire.

“To sustain this growth trajectory, the market needs to accelerate the delivery of new, large-scale Grade A space. Without fresh supply coming through, there’s a real risk that momentum could stall just as confidence returns to the sector.”

Read the full Q3 2025 Big Box report here.

Pictured: Fradley Park, Staffordshire