The majority of occupiers anticipate expanding their warehouse footprint over the next one to three years, according to the latest Future Space survey, which was conducted by supply chain market analysts Analytiqa on behalf of Tritax Big Box.
The survey of occupiers, institutional investors and developers, found nearly half (47%) of all occupiers expect to increase their warehouse footprint over the next 12 months and almost two-thirds (64%) anticipate expanding their warehouse footprint over the next one to three years.
In terms of future demand, 3PLs are primarily targeting existing units and retailers are increasingly looking at build-to-suit. The Midlands is the most popular region, followed by the South East.
Nearly a third (32%) of survey respondents view market conditions as better than 12 months ago and looking forward, 43% expect the market will improve over the course of this year.
Henry Stratton, head of research at Tritax Big Box, said: “Future Space affirms what we’re hearing in the market – that occupier confidence is growing, and more requirements should emerge in 2026. High quality, modern buildings are only increasing in importance as occupiers look to their real estate as a place where efficiency and productivity gains and competitive advantage can be achieved.”
Andrew Blennerhassett, associate director in Savills’ industrial and logistics research team, added: “The latest edition of Future Space points towards improving sentiment despite ongoing macro-economic headwinds. What’s more, it is fascinating to see how occupier priorities have shifted over the past nine years. In particular, we have seen power availability become critical as more businesses look to adopt AI, utilise electric vehicles fleets and incorporate automation. More traditional concerns also remain on the agenda, as rising labour costs and achieving net zero aspirations remain a challenge for many. These are all factors that will influence occupier strategy moving forward, with an emphasis on resilience.”
