UK Big Box market closes 2025 with highest levels of Grade A take-up since 2022

In 2025, the UK’s Big Box market reported its strongest full-year performance since 2022, with take-up of Grade A space reaching 22.6 million sq ft, up 5.6% year-on-year. The latest figures, published this week by global commercial real estate advisor Avison Young, point to improving occupier confidence and renewed market stability.

The completion of approximately 11 million sq ft of deals in H2 2025 marked the strongest second half in three years, with the East Midlands remaining the most active region in the market, accounting for 31% of total take-up in 2025.

In Q4 2025, third-party logistics operators drove significant demand, taking 58% of space on the market. Notable deals struck include JD Logistics taking 269,882 sq ft in Coventry; Roper Rhodes signing for a 235,235 sq ft distribution centre in Bristol; and DP World agreeing a 220,512 sq ft letting at SEGRO Park in Coventry.

Total available space increased by 2% quarter on quarter, reaching 56.4 million sq ft in Q4, indicating a stable, gradually improving supply position. Smaller units dominated the market, with approximately 72% of those available falling within the 100,000-399,999 sq ft range. Due to the continued weighting towards these units, larger occupiers faced some constraint, with limited availability for those requiring larger-scale space.

Despite improved momentum across Q4, investment volumes remained 41% lower than that of Q4 2024. Big Box investment activity totalled £1.65 billion in 2025 as a whole, down 15% year-on-year and 42% below the five-year average. However, findings highlight recovery late in the year, with investment volumes reaching £562 million in Q4, up 32% on the previous quarter.

Prime headline rents held firm through to the end of 2025, and average rental increases of around 4% recorded across the North West, Scotland and the South West highlight a resilient outlook for the year ahead. With an improvement to occupier confidence, stable rents and late-year investment recovery, the sector enters 2026 in a position of relative strength.

David Willmer, Principal and Managing Director, Industrial and Logistics at Avison Young, said:
“The Big Box market demonstrated notable resilience throughout 2025. Despite a year shaped by geopolitical uncertainty, tariffs, persistent inflationary pressures and a delayed UK Budget, the sector delivered its strongest year of take-up since 2022, totalling just shy of 23 million sq ft.

“The East Midlands remained a key strategic location for occupiers, accounting for 31% of total take-up, and 3PL operators were the dominant driver of activity in the market, representing 41% of annual take-up as supply chain optimisation and long-term efficiency continued to shape occupier decision-making.

“Although there is a substantial supply of industrial stock, it is heavily weighted towards smaller unit sizes, which continues to limit options for occupiers with larger space requirements. We expect competition for larger units, particularly in prime locations, to remain strong in 2026 which could result in rental uplifts where supply is constrained.

“Overall, the fundamentals of the UK Big Box market remain strong, and we are confident that activity in 2026 will continue to build on the performance in 2025.”

Read Avison Young’s Big Box report for Q4 2025 in full:

www.avisonyoung.co.uk/big-box-bulletin