Take-up of UK industrial and logistics units of more than 100,000 sq ft in 2025 was higher than in the two preceding years, according to Savills’ latest Big Shed Briefing.
The provisional take-up figure of 33.05m sq ft recorded in 2025 was ahead of activity recorded in 2023 and 2024 by 16% and 13% respectively, year-on-year. The figure is also 27% ahead of the long-term, pre-Covid average (2007-2019). Savills’ figures show that there is currently a further 6.2m sq ft of industrial and logistics space under offer.
The boost in take-up can largely be attributed to the resurgence of build-to-suit (BTS) activity, which totalled 9.9m sq ft nationally – a 7% increase on the previous year’s figure. The East Midlands accounted for 32% of total BTS transactions, the West Midlands accounted for 11% and the South East for 10%.
Manufacturing-related occupiers accounted for 33% of take-up – an 8% increase year-on-year – with 3PLs accounting for 31.5%. The grocery retail sector accounted for 7.4% of total activity.
At the end of the year, total supply stood at 64.1m sq ft across 299 units, representing a national vacancy rate of 7.81%.
Kevin Mofid, head of EMEA industrial and logistics research at Savills, said: “Although we have seen an increase in supply, fuelled by second-hand stock returning to the market, alongside 2.6m sq ft 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 and logistics at Savills, adds: “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.”
