As geopolitics, trade routes and supply chains continue to shift, Chinese companies are no longer a niche presence in the UK logistics market. They are becoming one of the most significant drivers of occupier demand across warehousing, distribution, manufacturing and last mile operations. What began as small scale leasing by a handful of e-commerce platforms has evolved into a structurally important source of demand. As we move into 2026, the real story is not simply about volume of take up. The real opportunity lies in understanding the strategic implications for landlords, developers and investors who want to stay ahead in an increasingly competitive industrial and logistics market.
2025 marked a steep change in Chinese related activity across UK industrial and logistics property. According to Newmark data Chinese firms leased nearly three million square feet of warehouse space across the year, and Newmark analytics suggests that further completions could make 2026 the strongest year on record for Chinese warehouse take up in the UK. Chinese demand now accounts for around six percent of total UK logistics take up, which is a meaningful share of the market.
This growth is being driven by large, well-capitalised businesses with long term strategic intent. According to Newmark data, JD.com alone leased close to 900,000 square feet in 2025. Alongside this, brands such as Shein and Temu continue to expand their UK presence, while logistics operators including SF Express, Cainiao and Super Smart Service are building networks designed to support high volume cross border fulfilment. The occupier base extends beyond pure e-commerce. It now includes electric vehicle manufacturers such as BYD, as well as companies operating in solar, electronics, food retail, wholesale and light manufacturing. Across the UK, activity is concentrated in the Midlands and the Golden Triangle where access to motorway networks, labour and national distribution capability remains critical. Deals such as Daals’ large scale furniture distribution operation illustrate both the size and operational commitment behind this wave of demand.
The underlying trade fundamentals support this trend. UK-China trade in goods and services reached £103 billion in the four quarters to Q2 2025, according to ONS data via the Department for Business and Trade. UK imports from China stood at £72.5 billion over the same period, rising year on year.[1] That level of import intensity is reinforcing the shift towards holding more inventory in the UK rather than relying solely on just-in-time global shipping. Strong container volumes through ports such as Felixstowe and London Gateway further underpin this activity. The £135 de minimis threshold on import duties continues to encourage bulk shipping into the UK followed by domestic distribution, which naturally increases the need for well-located warehousing.
For property owners, the most important shift is not simply who is taking space but how they want to occupy it. Chinese occupiers tend to be highly commercial, data driven and acutely aware of risk. Their real estate decisions are often shaped by the need to build flexibility and resilience into their supply chains. As a result, their requirements can look different to more traditional UK or European occupiers.
Speed to occupation: One of the clearest patterns is the preference for speed to occupation. These companies frequently target existing buildings or developments that are close to completion because this allows them to launch operations quickly and with less development risk. Time to operational readiness often outweighs the benefits of a fully bespoke building.
Lease flexibility: Many of these occupiers favour shorter lease terms of three to five years, often with break options, because they want the ability to adapt as demand patterns, regulation and trade routes evolve. Landlords who can accommodate this flexibility, without undermining income security, are consistently better positioned to capture this demand.
Elevated operational expectations: Operational expectations are also higher than many owners have historically experienced in the logistics sector. These occupiers increasingly expect buildings to be supported by services that enable their business to run efficiently. Daily cleaning is often requested in high throughput facilities where hygiene standards are commercially important.
Security considerations: Enhanced security has become a key consideration, particularly for assets handling high value goods, which means 24-hour monitoring, controlled access and visible security presence are frequently part of the conversation.
Digital infrastructure: Reliable fibre connectivity and the ability to deploy high speed networks quickly are essential to support real time tracking, AI enabled logistics systems and integration with global e-commerce platforms. Buildings that can support these operational needs are not simply easier to lease. They are often able to achieve stronger rents and more resilient occupancy because they align more closely with the occupier’s core business model.
For investors, developers and landlords, this shift should be viewed as an opportunity rather than a challenge. Assets that are modern, well powered, secure, digitally capable and operationally flexible are increasingly attractive to this growing occupier base.
In a market where differentiation between logistics buildings can be subtle, alignment with the specific requirements of Chinese occupiers can create a meaningful competitive advantage. It can shorten void periods, improve tenant retention and ultimately support stronger investment performance.
Looking ahead, there is little to suggest that this is a short-term phenomenon. The UK offers a compelling combination of stability, transparent legal frameworks, Freeport incentives and access to European markets.
Active occupiers in the market today include BYD, JD.com, Alibaba.com, Daals, SF Express, TopCloud, Super Smart Service and Cainiao among many others. Newmark is currently tracking 44 Chinese firms with more than five operational sites in the UK across Research and Development, e-commerce, manufacturing and logistics. In addition, Newmark is currently tracking nearly 600 Chinese-headquartered companies that exhibit the underlying account fundamentals indicative of significant expansion potential, many of which are likely to consider the UK and European markets as part of their long-term growth and risk mitigation strategies. This is organised, strategic demand rather than opportunistic activity.
At Newmark, we work closely with landlords, developers and investors to help them navigate this evolving occupier landscape. By combining proprietary data, detailed occupier intelligence and market expertise, we help clients understand where demand is coming from, which assets are best positioned to capture it and how leasing strategies can be refined to maximise value. For owners who want to futureproof their portfolios and unlock new sources of demand, engaging with this trend is no longer optional. It is becoming a core part of successful industrial and logistics strategy.
Partner - Industrial & Logistics Analytics
National Head of Industrial & Logistics Agency
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