Industrial continues to provide returns as rents rose 3% year on year in 2025
Warehouse rents continued to provide returns during 2025, with the average rental growth in big box units across the UK rising 3.0 % year on year, according to Colliers’ latest Industrial Rents Map.
In warehouses of 100,000+ sq ft the average UK rent is now sitting at £11.95 per sq ft, while prime headline rents for mid-box and multi-let industrial units has reached £15.80 per sq ft on average – a slightly higher year-on-year increase of 3.2 %.
Overall take up figures for the year hit more than 30 million sq ft Colliers reported – well above 2024’s total of 27.4 million sq ft, and above the pre-Covid five-year average.
Len Rosso, co-head of Industrial and Logistics at Colliers, commented: “The industrial market in 2025 once again showcased its resilience with rents continuing to rise. However, it was noticeable that this growth was more subdued in the second half of the year, most likely due to the uncertainty caused by the Government’s delayed Budget, and ongoing macroeconomic factors, resulting in occupiers delaying decision making until they were sure of their upcoming costs. The increased availability of stock will have also played a role, as we’ve seen secondary assets coming back onto the market as break-clauses have been activated following the conclusion of the pandemic race for space.”
Investment in the sector reached £10bn last year, in line with 2024’s year total. Some 21 % of all UK investment (£48bn) was in the warehouse market, the highest proportion for three years. Industrial land values remained largely flat on average over the past two years, holding at circa £2.0m per acre across the UK.
James Fairweather, co-head of Industrial & Logistics at Colliers, added: “We’re seeing both domestic and international investors continuing to target the UK logistics market, with prime locations such as the South East, Midlands and North West being the main areas of focus due to the sustained demand by occupiers for well positioned industrial and logistics stock.
“With continued investor appetite for the sector from existing investors and new entrants with requirements spanning from core to value-add returns, we’re expecting investment to be sustained once again in 2026.”