Grade A Big Box take-up has exceeded the five-year H1 average, despite cautious investment conditions, according to analysis from global commercial real estate advisor Avison Young in its latest Big Box bulletin.
The market maintained strong momentum in the first half of the year, with take-up reaching 13 million sq ft, 14% higher than H1 2025, and 7.6% above the five-year average. The figures underline the resilience of occupier demand, despite ongoing macroeconomic factors affecting market uncertainty.
Midlands continues to top regional take-up levels:
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 West Midlands was the second most active region, with 3.1m sq ft of take-up. Deals included ID Logistics’ 673,000 sq ft unit in Rugby and Marks & Spencer’s 437,000 sq ft building at Fradley Park in Lichfield.
Grade A supply remains stable, but supply constraints loom:
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. However, supply constraints in the Midlands could begin to affect take-up levels. Supply in the area fell by 1.8m sq ft between Q1 and Q2, leaving just nine large-scale warehouses available at the end of H1. This could constrain occupier choices into the second half of the year, leading some businesses to reassess expansion plans.
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. This reflects a cautious investment environment, with sentiment influenced by geopolitical uncertainty and macroeconomic pressures.
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%, reflecting continued demand for regional distribution and fulfilment space to support retail supply chains.
David Willmer, Principal and Managing Director, Industrial and Logistics at Avison Young, said:
“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. Third-party logistics firms account for over half of all take-ups, securing space to manage warehousing, fulfilment and distribution, as consumer expectations continue to grow.
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.
Despite a more cautious investment backdrop, the sector’s underlying fundamentals remain robust, with prime rents stabilised. We expect occupier demand to remain resilient through the remainder of 2026, supported by the continued need for efficient, strategically located logistics space.”
Read Avison Young’s Q2 2026 Big Box Bulletin in full here: https://www.avisonyoung.co.uk/big-box-bulletin
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