UK mid-box industrial take-up reaches 130,064 m2 in Q1

According to Savills, the UK's prime 'mid-box' industrial sector (units between 1,858 m2 and 9,290 m2) saw 130,064 m2 of space leased across 30 deals in the first quarter of 2026.

Warehouse - Savills

This figure is down 1% from Q1 2025 but remains 19% higher than the pre-pandemic (2015-2019) average for the first quarter.

In its inaugural report focusing on prime mid-box units (warehouses built since 2010), the international real estate advisor noted a 9% decrease in supply during Q1, while take-up remained strong. Savills anticipates further reductions in supply throughout the year. The total development pipeline for mid-box space across the eight regional markets Savills monitors stands at 292,631 m2, representing 1.48 years of available supply.

The South West and Wales region emerged as the strongest market in Q1, with transactional activity totalling 27,406 m2 across six transactions. This marks a 59% increase year-on-year and is 36% above the pre-pandemic average of 20,067 m2. The region attracted a diverse range of occupiers, with third-party logistics (3PLs) making up 20% of the take-up, the automotive sector 11%, and manufacturing companies 9%. While there are clear differences in take-up across the eight monitored regional markets, Savills indicates that many smaller markets are experiencing consistent enquiry levels, with activity limited more by extended lead times than by a lack of demand from occupiers.

Kiran Bhalla, Logistics Research analyst at Savills, commented: “While the mid-box market continues to react to the situation in the Middle East, many key indicators look set to support further take-up throughout 2026. For example, ONS stats for March this year show the number of businesses reporting an increase in turnover was 4% higher than those reporting a fall, and the total UK business count increased by 0.4% in 2025; many of these businesses are the type that typically take space in this segment of the market.”

Toby Green, National head of Industrial and Logistics at Savills, added: “Prime mid-box space continues to see strong demand, acting as a critical ‘engine room’ for much of the UK economy. With less than 18 months of supply currently available, many regions are experiencing heightened competition and upwards pressure on rents for the limited pool of prime stock.”