London, UK — December 15, 2025 - Newmark has published its ‘Multi-let Winter Bulletin’, revealing strengthening occupier activity in the UK’s multi-let industrial (MLI) market across London, the Midlands and Scotland as delayed leasing decisions from 2022–24 begin to unwind. The bulletin’s findings point to early signs of stabilisation in Q3 2025, following a period of low take-up that ran at almost half its pandemic peak.
The bulletin shows that although overall UK MLI rental growth has slowed in 2025, it is still running higher than in UK Retail and Offices. For the last two years, growth for MLI has been highest outside the South East, following London and the South East’s exceptional uplift over 2021-22 that stretched rent differentials between prime and secondary stock, as well as across geographies. Newmark’s high frequency 2025 indicators suggest that good quality secondary rents have begun to narrow the gap with prime again.
Josh Pater, Partner in Newmark UK’s Leasing and Occupational Advisory, noted: “MLI as a sector is fundamentally resilient, which is underscored by the near-record low default rate amid rising UK company insolvency trends. The interest rate and inflation shocks of 2022 and the more recent shifting global dynamics have impacted SMEs and bigger businesses alike. These dynamic conditions will likely continue, but we may be at a turning point for take-up where MLI occupiers break out of the holding pattern and commit to more space. Local conditions are key – for example, the recent uptick in London take-up in Q3 comes off the back of rent premium erosion in the South East during the last year. Coupled with continued supply erosion, this has restored some of London’s relative competitiveness and made footloose occupiers think again before they ripple out into the wider area.”
Increase in development under construction
The sector continues to be chronically undersupplied, which protects it from some negative economic impacts. Newmark’s research shows that a large majority of the UK’s 11.9 million square feet MLI pipeline remains at the planning stage, though the share under construction has increased from 18% in spring 2025 to 29% as we approach the year-end. This, in part, reflects the improved debt market and wider developer conviction that space will be let as occupier enquiry levels deepen.
Stronger investment market set for 2026
The bulletin also notes that industrial investment activity in 2025 has been subdued for single assets amid ongoing geopolitical and national economic uncertainties. Portfolio activity has been stronger, although much of it reflects corporate M&As. On the pricing side, yields have stabilised, but buyer depth is still thin and the narrow industrial carry compared with pre-2022 is sensitive to bond yield volatility.
Nick Ogden, Partner and Head of Industrial Investment at Newmark UK, noted: “Portfolio deals have bolstered the figures for what has been a challenging year for industrial capital markets in 2025. However, conditions for 2026 look more positive – on the demand side, debt terms have dramatically improved with substantial new global capital for industrial and logistics which is set to deploy, and not just from the United States. On the supply side, pension-fund restructuring is likely to add further assets to unsold stock from 2025 and support a higher volume of deals over the next year. The performance figures justify the attention multi-let gets from domestic and cross-border buyers – UK industrial total return has recovered above 9% and is widely expected to outperform other major UK property sectors once again over 2025-29.”
Download Newmark’s ‘Multi-let Winter Bulletin’ here: https://www.nmrk.com/en-gb/insights/thought-leadership/multi-let-winter-bulletin-2025
About the Multi-let Bulletin
First undertaken in 2008, the Multi-let Bulletin is Newmark’s unique and market-leading syndicated study, now in its 17th year. It provides detailed industry-reference insight into what would otherwise be an opaque sector. The results are built from the bottom up, using individual tenancy information on units between 500 square feet and 50,000 square feet. The dataset contains many tens of thousands of individual assets, with a current sample size of 162 million square feet, valued at over £30bn.
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 June 30, 2025, Newmark generated revenues of over $2.9 billion. As of June 30, 2025, Newmark and its business partners together operated from 165 offices with over 8,400 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.
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