The UK’s current rent reality: what the data shows

Last year, was a year of strategic thinking and considered spending. After riding high for over a decade and taking a downwards trajectory in 2024, global logistics rents have since found more balanced ground, reflecting the market’s well-measured and considered approach – a trend that we’re seeing here in the UK.

The UK logistics market experienced modest net effective rent decline in 2025, partly due to incentivised rates responding to weaker demand. Fortunately, however, the second half of 2025 bolstered optimism, thanks to an influx of build-to-suit (BTS) activity and strategic leases improving market sentiment – setting up the market for a stronger 2026.

Areas of strength

With customers and consumers looking to make savings where they can, this behaviour is reflected in customer leasing habits. Unsurprisingly, areas with strong connectivity in, out of, and across the country, with relatively more manageable rents, continued to perform well. Customers that are looking to lease are choosing locations outside of the once unrivalled London market, favouring areas which offer similar serviceability and access to labour, but without the capital city price tag.

The Midlands and South East markets have been ticking boxes for customers for a long time thanks to their accessibility to London corridors; a trend we don’t see changing anytime soon. This constant pipeline of demand has left both markets in a strong position, with the regions holding the UK’s highest rents throughout 2025 and into 2026. Product quality also remains a main factor in decision making; something both markets are well equipped to provide. Demand for adaptable, sustainable and operationally-ready units remains significant, keeping quality supply low, and rents high.

The Midlands, a bastion of the UK logistics market, has rightfully upheld its ‘Golden Triangle’ title, as reflected in strong, stable activity across the board. Whilst the construction of speculative builds may have slowed over the past 18 months, an exceptional run of strategic BTS activity has demonstrated the value this region holds for logistics investors, with Prologis RFI DIRFT reporting over 1.8m sq ft of BTS activity at the end of 2025 and into 2026 alone.

Looking forward, these areas remain key for both land investment and speculative builds. Servicing demand requires a consistent pipeline of available space, and getting ahead in unlocking land potential is the only way to stay ahead of an inevitable surge.

Looking at London

In comparison to Midlands and South East markets, which are still able to service the capital using efficient transport routes, the London market fared slightly worse when it came to overall rent rates.

Keeping vacancies low remained a priority, and to remain competitive against trending markets and decreased demand, owners faced no other option than to push for more attractive rates. It is also worth remembering that when compared to the record rent run of 2019 through to 2023, where rental level increases exceeded 50%, this slowdown was almost certainly to be expected.

The fundamentals of the London logistics market remain strong, underpinned by a highly constrained supply pipeline, one of the largest consumer bases in Europe and sustained demand for well-located last mile hubs.

So, are we surprised?

Not really. There will always be demand for well connected, high-performance assets, and with vacancies in key areas remaining low, units in strategic locations will retain their value. With that in mind, there is view that as demand continues to normalise, late 2026 will see a stronger market and in turn, a return to rental growth.