UK Big Box market recovers with strong Grade A take-up

The UK's Big Box real estate market experienced its best year since 2022 in 2025, with Grade A space take-up reaching 2.1 million m2, a 5.6% increase year-on-year. 

Big box - Avison Young

This indicates growing occupier confidence and market stability, according to Avison Young.
The second half of 2025 was particularly strong, with approximately 1 million m2 of deals completed, making it the best H2 in three years. The East Midlands remained the most active region, accounting for 31% of total take-up.
In Q4 2025, third-party logistics operators were a major driver of demand, securing 58% of available space. Key deals included JD Logistics taking 25,072 m2 in Coventry, Roper Rhodes leasing 21,854 m2 in Bristol, and DP World securing 20,486 m2 at Segro Park in Coventry.
Total available space increased by 2% quarter-on-quarter to 5.2 million m2 in Q4, signalling a stable and improving supply. However, smaller units (9,290-37,161 m2) dominated the market, making up about 72% of available space, which limited options for occupiers needing larger facilities.
Despite improved momentum in Q4, overall investment volumes for 2025 were down 15% year-on-year and 42% below the five-year average, totalling £1.65 bn (€1.93 bn). However, Q4 saw a significant recovery, with investment volumes reaching £562 mln (€659 mln), a 32% increase from the previous quarter.
Prime headline rents remained stable through 2025, and average rental increases of about 4% in the North West, Scotland, and the South West point to a resilient outlook for the coming year. With enhanced occupier confidence, stable rents, and a late-year investment recovery, the Big Box sector is entering 2026 in a relatively strong position.
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 2.14 million m2.
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.”
He added: “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.”