Take-up of big sheds fell 10% in H1 2026 compared with the same period last year, according to Savills’ latest Big Shed Briefing.
In H1 2026, 15.4m sq ft of big shed space (units over 100,000 sq ft) transacted, 17% above the long-term average recorded between 2007–2025 – excluding 2020-2022.
The market was driven by activity across the Midlands, which accounted for 60% (9.24m sq ft) of UK big box take-up so far this year.
The 3PL market remains the dominant occupier sector, accounting for 38% of the space transacted so far in 2026, with a large proportion of this fuelled by increased activity from the likes of Amazon and Chinese e-commerce retailers. A number of defence-related occupiers have also taken space with more requirements likely to come to the market in H2 thanks to the government’s new Defence Investment Plan.
The vacancy rate has decreased to 7.75%, down from 8.14% in Q4 2025, with 63.9m sq ft available across 304 units nationwide. However, 21 units, totalling 4.3m sq ft, are currently under offer which should help drive vacancy down further.
Only 7.6m sq ft of speculative space is currently under construction, 63% lower than 2022’s peak and 20% lower than at the same point in 2025. Built-to-suit activity accounted for only 11% of the market so far in 2026 – well below the long-term average of 37%.
Toby Green, head of industrial and logistics at Savills, said: “The big box market remains very resilient. We are seeing a depth and breadth of demand from a variety of different occupier groups, including established and new entrant Chinese e-commerce companies and the first big defence acquisition by the MOD at Panattoni Park Swindon A. With speculative development down 63% on peak levels and 20% on 2025, supply will continue to tighten over the next 12 months and beyond.”
Kevin Mofid, head of industrial and logistics research at Savills, added: “Many of the indicators in our data suggest that it is likely we will see an undersupply of larger units as we head into 2027 as, despite wider geopolitical uncertainly, the market continues to perform well with deals being signed from a broad range of occupier types.
“The recent publication of the Defence Investment Plan will bring much needed certainty to the defence sector and we expect this clarity to kick-start a wider ripple effect into the property market with the sector likely to see increased demand for advanced manufacturing, secure logistics, R&D, storage and supply chain infrastructure.”
