Ecommerce demand drives UK industrial market in H1
Warehouse rents across the UK continued to deliver growth during the first half of 2026, although at a more measured pace compared with recent years, according to Colliers’ latest Industrial Rents Map analysis.
The average prime headline rent for distribution warehouses of 100,000+ sq ft reached £12.40 per sq ft, representing annual growth of 2.8%, with rents increasing 2.1% during the first six months of the year.
Meanwhile, prime headline rents for mid-box and multi-let industrial units rose to an average of £16.10 per sq ft, reflecting annual growth of 2.9% and a 1.8% increase during 2026 so far.
While rental growth remains positive, the pace has moderated compared with H1 2025 when annual growth stood at 5.0% for big-box logistics assets and 4.8% for mid-box and multi-let industrial properties.
UK take-up figures for units exceeding 100,000 sq ft reached almost 15 million sq ft in H1 2026, 20% below the same period last year but still ahead of the pre-Covid 10-year H1 average of 14.2 million sq ft.
Ecommerce has driven the market so far this year with 40% of take up by 3PLs, and another 40% from retailers and pure online combined. In addition, Chinese ecommerce brands have accounted for 13% of the overall big box take up this year – up from c.6% during 2025.
Len Rosso, co-head of industrial & logistics at Colliers, commented: “E-commerce has been the backbone of the industrial market so far in 2026, with demand from 3PLs, retailers and pure online players providing the resilience during a continuously challenging macro-economic environment. Chinese ecommerce giants have continued to expand their presence in the UK this year, such as the JD.com expansion to 150,000 sq ft at Progress Park in Bedford we supported on. So far this year, this tenant group has more than doubled their proportion of take up compared to last year.”
There have been several larger leases of more than 400,000 sq ft agreed this year – predominantly in the Midlands, which accounted for 61% of all take-up during the first half of the year.
Deirdre O’Reilly, head of industrial research at Colliers, observed: “The UK logistics occupier market is proving exceptionally resilient despite continued macroeconomic uncertainties and inflationary pressures, and this sustained demand continues to support positive rental growth across most regions. While rental growth has moderated compared with recent times, this reflects a market that has returned to more normalised conditions following a prolonged period of expansion.”
Land values have also continued to adjust, with average UK industrial land values now rebased to approximately £1.9 million per acre. The most significant pricing corrections have been recorded across London and the South East, reflecting changing financing conditions and evolving investor expectations.
James Fairweather, Co-Head of Industrial & Logistics at Colliers, added: “We’re continuing to see investors prioritise prime opportunities in core logistics markets where occupier demand remains robust and development pipelines are relatively constrained.
“The flight-to-prime theme remains firmly in place. Investors are targeting assets and locations with strong underlying fundamentals, while development activity in secondary and tertiary markets remains more subdued due to higher capital costs and a more risk-averse lending environment. As market conditions stabilise, we expect well-located industrial and logistics assets to remain highly attractive to both domestic and international capital.”