UK big shed take-up up 27% above pre-Covid levels

The UK's industrial and logistics real estate market is showing strong signs of normalisation and growth, with take-up of large warehouse spaces (over 9,290 m²) reaching 3.07 million m² in 2025. 

Industrial and logistics - Savills

This figure, according to Savills' latest Big Shed Briefing, represents a significant increase of 16% compared to 2023 and 13% compared to 2024. 
More notably, it's 27% higher than the pre-Covid long-term average (2007-2019), indicating a recovery from the post-pandemic market adjustments. An additional 576,000 m² is currently under offer, setting a positive tone for early 2026.
This surge in demand is largely driven by a rebound in "build-to-suit" (BTS) projects, which saw 920,000 m² of activity nationally, a 7% increase from the previous year. The East Midlands, West Midlands, and South East were key regions for BTS transactions.
Positive net absorption returned in Q3 2025 for the first time since Q4 2022, accelerating into the final quarter. Despite this, overall supply has continued to grow, reaching 5.95 million m² across 299 units, resulting in a national vacancy rate of 7.81%.
From an occupier perspective, manufacturing accounted for the largest share of take-up at 33%, an 8% increase year-on-year. Third-party logistics (3PLs) also remained highly active, with their share growing by a substantial 57% from 613,000 m² in 2024 to 966,000 m² in 2025. The grocery retail sector has also seen a resurgence, accounting for 7.4% of take-up, as supermarkets like M&S and Waitrose adapt their supply chains, focusing on automation and future-proofing after the expiration of older leases.
Kevin Mofid, head of EMEA industrial & logistics research at Savills, commented: “Although we have seen an increase in supply, fuelled by second-hand stock returning to the market, alongside 241,500 m² of new speculative units completing in Q4 2025, overall the pipeline looks to be shrinking sharply. Observing the quantum of space currently under construction across the UK, it has fallen by 65% from its peak in Q2 2022. What’s more, there are also regional variations to consider, with locations such as the Midlands and North West experiencing quarterly contractions.”
Toby Green, national head of industrial & logistics at Savills, added: “Overall, 2025 has been decidedly more positive for the sector. We have seen the return of major corporates making long-term strategic decisions, which correlates with data from our Savills occupier requirements index having seen a 12.3% lift year-on-year. Looking ahead, there remains a number of structural trends that will continue into 2026. For example, ESG will remain a factor, with 78% of take-up in 2025 for grade A units, against a pre-Covid average of 68%. There is also the increase in demand from defence-related occupiers, plus resilient e-commerce growth. We will, of course, continue to face challenges, especially in relation to cost, with energy charges and a hike in minimum wage all materially impacting occupier growth strategies. However, all things considered, we believe we are through the most challenging period when it comes to rising supply and volatile take-up.”