UK industrial take-up hits highest since Q2 2022

According to Cushman & Wakefield’s latest UK Industrial Marketbeat report for Q3 2025, the UK industrial sector is showing strong signs of recovery, with occupier take-up reaching its highest level since Q2 2022, positioning 2025 to surpass 2024's performance.

UK Industrial Marketbeat

Occupier demand jumped 35% from Q2, hitting over 1.13 mln m2 in Q3, and is 11% higher than last year. This surge is largely due to renewed "big box" demand, particularly from food retailers (who took 213,677 m2, a high since 2018) and third-party logistics (3PL) companies reactivating long-term supply chain strategies. Retail and manufacturing collectively accounted for over half of all space taken.
Despite increased take-up, big box rental growth moderated slightly to 3.6% from 3.9%.
Investment volumes improved to £1.75 bn (€1.98 bn) in Q3, primarily driven by single-asset deals (72 out of 78 transactions). However, year-to-date investment remains below the pre-pandemic five-year average, reflecting ongoing market evolution. Prime yields have softened slightly to an average of 5.5%.
While GDP continues to grow, business sentiment has softened due to concerns over the upcoming Autumn Budget and potential tax increases. Global Supply Chain Pressure Index (GSCPI) is rising due to trade tensions and capacity constraints, prompting businesses to adopt nearshoring and multi-sourcing strategies for resilience.
Overall supply contracted by 4% in Q3, with Grade A supply dropping 6% to 4.5 mln m2. New speculative development starts have slowed, but about 1.14 mln m2 of speculative space is still expected by year-end 2025. Market conditions are projected to improve further in early 2026 due to strong sector fundamentals.