UK grade-A big-box take-up has exceeded the five-year H1 average, despite cautious investment conditions, according to analysis from Avison Young.
The market maintained strong momentum in the first half of the year, with take-up reaching 13m sq ft, 14% higher than H1 2025 and 7.6% above the five-year average.
Regionally, the Midlands continued to account for the largest share (8.9m sq ft) of leasing activity, with the East Midlands accounting for 44% (5.8m sq ft) of total take-up. This was driven by deals including Bleckmann Logistics taking 761,000 sq ft at Magna Park North, and CEVA Logistics taking 508,000 sq ft at Infinity Park, Derby.
“The momentum of the UK’s big-box logistics market has remained strong for the first half of 2026, reflecting strong demand from occupiers and outpacing historical averages,” said David Willmer, principal and managing director, industrial and logistics at Avison Young.
“However, supply challenges could emerge in the Midlands, the UK’s premier logistics hub, which could temper take-up in the second half of the year if new supply remains limited. Occupiers seeking larger grade-A facilities are facing a diminishing pool of available options. To combat this, local authorities need to speed up planning reforms to allow large-scale industrial developments to be built faster.”
Availability of grade-A space remained broadly stable, only declining by 1% to 59.3m sq ft. Supply was heavily concentrated in smaller units, accounting for 88% of all available buildings.
Investment volumes totalled £750m, marking a more subdued first half of the year, with volumes 11% below H1 2025 and 12% below the rolling five-year H1 average.
Overall, demand was driven by third-party logistics (3PL), which remained the dominant occupier sector, accounting for just over half (53%) of all take-ups. Retail accounted for 22%.
Willmer added: “We expect occupier demand to remain resilient through the remainder of 2026, supported by the continued need for efficient, strategically located logistics space.”
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