Rising confidence in UK industrial and logistics sector

A survey by Tritax Big Box and Savills reveals a surge in confidence within the industrial and logistics (I&L) sector in the UK, with key areas of focus being labour, technology, and power.

Logistics - Tritax Big Box

According to the ninth annual "Future Space" survey, which polled approximately 400 industry professionals, 43% of occupiers anticipate improved market conditions in 2026. This optimism translates into significant expansion plans, with 64% intending to increase their warehouse footprint in the next one to three years. The Midlands and the South East are the preferred regions for this growth.
Global trade tariffs are viewed positively by many, with 40% expecting them to boost warehouse demand as companies prioritise supply chain resilience.
While rising labour costs (57%) and availability (39%) remain top concerns, especially for 3PLs, 60% of occupiers expect their workforce to grow, particularly in skilled technical roles (56%). 
The I&L sector is becoming more tech-intensive, with key investment areas including AI (59%), electric vans (56%), and robotics/automation (55%). This technological shift is driving a significant increase in power demand, with 82% of occupiers expecting higher power needs in the next three years. Power availability is rapidly becoming a critical factor for securing future space.
Occupiers are actively working towards net zero, with 38% aiming for their warehouse property to be net zero by 2035 and another 43% by 2040. However, two-thirds of current estates cannot meet these goals. Renewable energy, rooftop solar, and fleet transition are key priorities for achieving the ESG targets.
Henry Stratton, head of Research, Tritax Big Box, commented: “Future Space affirms what we’re hearing in the market – that occupier confidence is growing, and more requirements should emerge in 2026. High-quality, modern buildings are only increasing in importance as occupiers look to their real estate as a place where efficiency and productivity gains and competitive advantage can be achieved.”
Andrew Blennerhassett, associate director in the Savills industrial & logistics research team, added: “The latest edition of Future Space points towards improving sentiment despite ongoing macro-economic headwinds. What’s more, it is fascinating to see how occupier priorities have shifted over the past nine years. In particular, we have seen power availability become critical as more businesses look to adopt AI, utilise electric vehicle fleets and incorporate automation. More traditional concerns also remain on the agenda, as rising labour costs and achieving net-zero aspirations remain a challenge for many.”