Big box bulletin

In H1 2025, the take-up of big-box*, grade-A space totalled 10.3 million sq. ft, which is 9% lower than the same period last year and 29% lower than the 5-year average. Encouragingly, we have seen a 13% increase in take-up activity between the first and second quarters of this year despite the ongoing uncertainty in the economy. The East Midlands saw the highest level of activity, accounting for 34% of H1's leasing activity. Most of the space (87%) was taken up by third-party logistics providers, including occupiers such as Amazon, Menzies and Royal Mail.

Availability in Q2 2025 totalled 55.3 million sq. ft. which was slightly lower than the Q1 2025 total of 55.8 million sq. ft. Supply was evenly split between completed speculative and second-hand units (42% each), with the remaining 16% comprising space under construction. Looking at the number of units the current supply remains heavily weighted towards smaller units (100,000 - 399,999 sq. ft.), which account for 89% of available stock by unit count. This makes larger requirements difficult to satisfy.

Investment volumes year-to-date are at low levels, totalling £548 million, with just £111 million transacting in Q2. This is 55% lower than the 5-year average. While some deals remain undisclosed — suggesting actual volumes may be higher — the data clearly reflects the impact of global economic uncertainty on the industrial investment market.

Prime headline rents remain robust and have risen in the North West, Scotland and the South West by 4% on average.