UK retail warehouse investment volumes hit £1.5bn in H1 2025 – a 32% year-on-year increase, according to new data from CBRE.
This follows a strong 2024 during which retail warehouse investment volumes reached £3.35bn – the highest level since 2021.
The number of deals completed in H1 fell below the five-year average, but larger lot size transactions returned – the average lot size in H1 2025 was £38m.
REITs and private equity led the charge for core plus space. However, a wave of new entrants were also active in the market, with capital from France and the US accounting for 58% of H1 buyside activity.
George Pelling, head of UK retail capital markets at CBRE, said: “The pool of capital looking to enter the retail warehouse market is widening, as investors look to capitalise on robust occupational demand, lower levels of vacancy and subsequent rental growth.”
Martin Supple, head of UK out of town retail at CBRE, 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.”
