Take-up in the UK’s prime industrial ‘mid box’ sector (units of between 20,000-100,000 sq ft) reached 1.4 million sq ft across 30 transactions in the first quarter of 2026, down 1% on Q1 2025 but 19% above the Q1 pre-pandemic (2015-2019) average, says Savills.
In its first report focused on mid-box units, which concentrates on warehouses constructed since 2010 as a proxy for the prime end of the market, the international real estate advisor says that supply fell by 9% in Q1 as take-up remained resilient, and that further reductions are expected throughout the year. The total development pipeline of mid-box space across the eight regional markets that Savills monitors is 3.15 million sq ft, with 1.48 years’ worth of available supply in the market.
According to Savills, the South West and Wales region was the standout market in Q1: transactional activity totalled 295,000 sq ft across six transactions, up 59% year-on-year and 36% above the pre-pandemic average of 216,000 sq ft. The region saw a diverse range of occupiers taking space, with third-party logistics (3PLs) accounting for 20% of take-up, the automotive sector 11% and manufacturing companies 9%. While there is a clear divergence in take-up across the eight regional markets it monitors, Savills says many of the smaller markets are reporting steady enquiry levels and report that activity is constrained by longer lead times rather than a lack of demand from occupiers.
Kiran Bhalla, Logistics Research Analyst at Savills, comments: “While the mid-box market continues to react to the situation in the Middle East, many key indicators look set to support further take-up throughout 2026. For example, ONS stats for March this year show the number of businesses reporting an increase in turnover was 4% higher than those reporting a fall, and the total UK business count increased by 0.4% in 2025; many of these businesses are the type that typically take space in this segment of the market.”
Toby Green, National Head of Industrial and Logistics at Savills, adds: “Prime mid-box space continues to see strong demand, acting as a critical ‘engine room’ for much of the UK economy. With less than 18 months of supply currently available, many regions are experiencing heightened competition and upwards pressure on rents for the limited pool of prime stock.”
