Positive signs for multi-let industrial as take-up rises across multiple regions
Our latest research shows that occupier demand for UK multi-let industrial (MLI) began to stabilise in Q3 2025 after a challenging post-Covid period where take-up has been running at almost half its pandemic peak. Our unique syndicated study, produced with the UK’s leading MLI landlords, points to firmer activity in London, the Midlands and Scotland as delayed decisions start to unwind.
Conditions will no doubt remain challenging, but we could be at a turning point for take-up. Some multi-let occupiers now need to break out of the re-gear holding pattern and commit to more space. Local dynamics matter – increased take-up in London in Q3 reflects the erosion of the rent premium over the South East during the last year, restoring some of London’s relative competitiveness and encouraging footloose occupiers to think again before moving further out
Signs of stabilisation in take-up
Annual UK multi-let take-up was around 33 million sq ft in Q3 2025, remaining well below the pandemic peak. This reflects ongoing hesitancy to commit to space in the context of a longer-term shrinking pool of suitable lettable units. An increased proportion of re-gears may also be under-represented in reported take-up data.
Recent quarters show signs of stabilisation, with firmer activity in London, the Midlands and Scotland in Q3. Pent up demand from delayed decisions over 2022–24 is starting to unwind. London has also benefitted from a reduced rent premium over the South East, improving relative competitiveness.
Narrowing prime/secondary polarisation
UK multi-let rental growth has slowed in 2025 but remains higher than in Retail and Office. Growth outside of the South East has outperformed since 2023, which reflects a broader sector consolidation after the exceptional uplift in 2021-22, particularly in London. In prime markets, only rents in parts of the South East ticked up in 2025.
Recent indicators suggest record-high prime/secondary rent polarisation has finally begun to ease over 2025. Good quality secondary rents have significant headroom to move into and this has been led by regions outside of the South East where blended rental growth has been strongest. Meanwhile, prime rents have been broadly flat.
Increase in development under construction
The drift upwards in multi-let vacancy since 2021 has not been driven by development supply, which is negligible in the context of the wider market. A large majority of the 11.9 million sq ft pipeline remains at the planning stage, though the share under construction has risen from 18% in April 2025 to 29% in November 2025.
This in part reflects the improved debt market and wider developer confidence as inflation volatility eases and occupier enquiry levels deepen. Nevertheless, UK multi-let supply remains extremely limited and the space under construction equates to just over one month of national take-up.
Stronger investment market set for 2026
Investment activity in 2025 has been muted for single-assets amid geopolitical and national economic uncertainty. Portfolio activity has been stronger, although much of it reflects corporate M&As. Yields have stabilised, but buyer depth is thin and the slim industrial carry compared with pre-2022 is sensitive to bond yield volatility.
Conditions for 2026 look more supportive. Debt terms have improved and new global capital for industrial and logistics is set to deploy. Meanwhile unsold 2025 stock added to pension-fund restructuring should add to supply. Industrial total return has recovered above 9% and is expected to outperform other major property sectors over 2025–29.
