UK retail warehouse investment surges in H1

According to CBRE, investment in UK retail warehouses experienced a significant surge in the first half of 2025, reaching £1.5 bn (€1.7 bn)—a 32% increase compared to the same period last year. 

Retail park

This follows a robust 2024, which saw the highest retail warehouse investment volumes since 2021 at £3.35 bn (€3.83 bn).
While the number of transactions decreased to below the five-year average, to 100, the average deal size rose to £38 mln (€43 mln), indicating a return of larger-scale investments.
Institutional investors continue to dominate the prime retail park segment, with REITs and private equity firms focusing on core-plus properties. Notably, the market has seen an influx of new players, with French and U.S. capital representing a substantial 58% of buyer activity in the first half of the year.
CBRE anticipates continued rental growth for prime retail parks in the second half of 2025, particularly for smaller to mid-sized units (697 m² to 1,858 m²). Recent lease agreements achieving higher rents for specific unit sizes have driven an 8% increase in the prime retail park rental growth index over the past year.
This rental growth recovery is attributed to a combination of low vacancy rates and strong tenant demand. The overall vacancy rate for retail warehousing has decreased to 6% in Q2 2025, as reported by Trevor Wood Associates. Despite an increase in supply from existing stock in 2024 due to store closures by Carpetright and Homebase, occupier interest has been high. CBRE estimates that approximately 75% of former Carpetright stores and 85% of former Homebase stores located on retail parks or as standalone units have either been leased or are under offer.
George Pelling, head of UK Retail Capital Markets, commented: “The pool of capital looking to enter the retail warehouse market is widening, as investors look to capitalize on robust occupational demand, lower levels of vacancy, and subsequent rental growth.”
Martin Supple, head of UK Out of Town Retail, added: “The swift take-up of these two large store portfolios demonstrates the strength and resilience of occupational demand for retail parks, which benefit from a diverse tenant mix with footfall levels that surpass other retail sub-sectors.”