UK industrial and logistics take-up activity remained resilient in Q1 2026 despite the uncertain macroeconomic climate, according to provisional data from Cushman & Wakefield.
In Q1 2026, 8.4m sq ft of space was leased across 53 transactions, reflecting a 5.9% increase quarter-on-quarter and a 5.8% uplift year-on-year. Quarterly activity now sits slightly above the five-year pre-pandemic quarterly average.
Total take-up over the past 12 months reached 37.9m sq ft, well ahead of the 32.9m sq ft recorded in 2024.
Activity was largely driven by the 3PL, retail and e‑commerce sectors, which accounted for 19.8m sq ft of take‑up over the past 12 months. During Q1 2026, e‑commerce occupiers alone signed for 1.6m sq ft – the highest quarterly volume of activity since Q4 2023.
Take-up of space between 200,000 sq ft and 500,000 sq ft accounted for 4.1m sq ft of total activity in Q1 2026 and 16.6m sq ft over the past 12 months. However, demand for mid-box space remains subdued with just 1.5m sq ft transacting in Q1 2026 – a 16% decline year-on-year.
Supply increased by 6.1% during the quarter, reflecting a continued uptick in returning second‑hand space.
Richard Evans, head of UK logistics and industrial leasing at Cushman & Wakefield, said: “Further improvement in headline demand during Q1 is encouraging, although it remains uneven and comes at a time when macroeconomic and geopolitical risks continue to run high. That said, slowing development activity and the underlying resilience of the occupational market mean the sector is well positioned to weather ongoing volatility. However, a prolonged period of elevated uncertainty is likely to weigh on sentiment and activity throughout the year.”
