London, UK (November 04, 2025) — Newmark’s latest UK Logistics Conditions & Trends report reveals that the UK logistics occupational market strengthened in Q3, as availability declined for the first time in almost three years and demand was 6% above the same period last year.
National availability fell to 7.9%, down from 8.6% in Q2, marking the first quarterly decline since the record low of 3.6% at the end of 2022. The fall signals a pivotal moment in the occupier market, with demand broadening and a renewed appetite among occupiers to secure larger units.
Reduced availability was evident across all grades of units and was driven primarily by strong lettings activity and a rise in space under offer. Geographically, availability was lower across most UK regions in Q3, with the Midlands and the North West showing the most change. However, Newmark’s research cautions that a rapid return to record lows is unlikely, as occupiers continue to upgrade into newer space and release older stock. An increase in lease expiries, five years on from the exceptional 2021-22 Covid-era surge, will also temper the rate of decline.
On the demand side, take-up is now almost back to its long-term average and trending higher on a yearly basis. Around 13.2 million square feet was let in Q3, just shy of Q2’s total and 6% above the same period last year. The over-100,000 square feet market is particularly active, with year-to-date take-up of such space 17% up on the same period last year. Expansion and operational efficiency remain the primary leasing drivers, focusing demand on modern, energy-efficient, well-fitted units. Activity was particularly strong in the East Midlands, which alone accounted for 19% of all UK take-up over the past year and continues to attract both overseas entrants and domestic occupiers looking to optimise supply chains.
Prime rental growth was positive but slowed further to 3% year-on-year in Q3. Newmark expects availability to have now peaked, with new-build vacancy having been stable at around 4% for over a year. Limited supply of good-quality stock combined with strong structural demand and below-average speculative development continues to support a positive rental outlook, albeit in the low to mid-single digits.
Charles Spicer, National Head of Industrial & Logistics Agency said: “The positive momentum from Q3 has carried into Q4, supported by several major land transactions and a steady stream of new lettings. As we approach year-end, a strong finish on the demand side is in sight, likely bringing annual take-up back in line with the long-term average and further reducing availability in several markets. Developers are continuing to position for future demand, acquiring well-located sites and advancing large-scale schemes, while some occupiers have also secured land for future development. Although speculative development starts have been subdued this year, strengthening confidence in occupier demand for prime space, the prospect of tighter availability in 2026 will likely encourage an increase in activity.”
In the investment market, trading conditions have been challenging since early April but there is still activity and liquidity. Debt terms have materially improved, and lots of new capital continues to be raised for deployment into UK the Industrial and Logistics sector. This is yet to translate into higher direct deal volumes, albeit portfolios, recap and corporate activity is very busy.
Nick Ogden, Head of Industrial & Logistics Capital Markets at Newmark in the UK, commented: “It’s been a challenging year for single asset trades, but there is still activity, particularly post-summer. Value-add opportunities remain the focus for new capital. We think the signs of improvement in the occupational market make logistics a good buy right now. This is a rare point in the cycle when prime logistics assets can be acquired with very little competitive pressure, especially in core locations.”
Further information about Newmark’s UK Logistics Conditions & Trends report for editors: Analysing industrial and logistics units of 50,000 sq ft and above, this research report provides detailed analysis and statistics for 26 key UK distribution areas – from take-up, stock and development statistics to drivers of occupier demand, growth forecasts and regional outlooks. Previous editions of our industrial research can be downloaded from our website.
Newmark Boilerplate 3Q 2025
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2025, Newmark generated revenues of over $3.1 billion. As of September 30, 2025, Newmark and its business partners together operated from approximately 170 offices with over 8,500 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.
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