LONDON, UK (February 03, 2026) — According to Newmark’s most recent research, UK Logistics Conditions & Trends Q4 2024, the UK logistics market continued its steady recovery in Q4, supported by falling supply and improving occupier confidence.
The UK availability rate eased to 7.6% in Q4 2025, cementing Q2 as the cyclical peak in supply. Solid, broad-based demand and subdued speculative development point to further tightening in 2026, though the ongoing release of secondary space will likely moderate any sharp contraction.
UK take-up was 12.2m square foot in Q4, down 8% on Q3 but 15% higher than the 10-year pre-pandemic quarterly average. Annual take-up for 2025 was fractionally ahead of 2024, shoring up the longer-term recovery since 2023. Demand is considered, strategic and mostly expansionary, led by logistics and e-commerce along with new overseas entrants and defence-related manufacturers.
Prime annual rental growth is at a cyclical low but stabilised at 3.2% in Q4 2025. A wide gap between prime and secondary rents persists, with rental uplift concentrated on new completions. Speculative development was a subdued 11m square foot in 2025, which was the lowest since 2017. This continues to support prime headline rents along with significant incentives.
Charles Spicer, National Head of UK Industrial & Logistics Agency, said: “We are seeing a real change in occupier decision making. It is no longer just about how big a building is or motorway or rail access. Power connectivity and internal configuration of the warehouse are now just as important. AI and automation are rapidly changing how warehouses are designed and used, and occupiers are prioritising fit-out, automation-readiness, mezzanines and efficient layouts in leasing decisions.”
Industrial investment in 2025 was dominated by large portfolio transactions, notably M&A and recapitalisations. While logistics assets were a core component of these deals, direct market activity was subdued and largely confined to smaller, last-mile units. Investor sentiment improved post-Autumn Budget and pricing was stable in Q4.
Nick Ogden, Head of UK Industrial Capital Markets, commented: “The final quarter of 2025 was the most active, as expected, but volumes were still below a typical Q4. Q4 activity was influenced by the Autumn Budget, with many vendors delaying launches ahead of the announcement and buyers adopting a cautious stance amid uncertainty around potential policy or tax changes. These deferred year-end sales coupled with residual portfolio stock should support a modest uplift in single asset transaction activity in 2026, though capital targeting logistics remains highly selective.”
Further information about Newmark’s UK Logistics Conditions & Trends report for editors
UK Logistics is the definitive guide to the UK’s distribution property market. 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 can be downloaded from our website.
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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