Robust H1 2026 Big Shed take up driven by online retail acquisitions across the Midlands but…
According to Savills latest Big Shed Briefing, 15.4 million sq ft of space was let in H1 2026, 17% above the long-term average (2007–2025, excluding 2020-2022*) but 10% lower than H1 2025, due to heightened macroeconomic headwinds.
The international real estate advisor says that the H1 Big Shed market (units over 100,000 sq ft) was driven by activity across the Midlands, which has accounted for 60% (9.24 million sq ft) of UK big box take-up so far this year. Elsewhere, activity has been largely resilient, but deal-making periods have generally lengthened as occupiers have been hesitant in the wider economic environment whilst also being faced with a falling supply of Grade A stock.
In terms of occupies taking space, the 3PL market remains the dominant sector, responsible for 38% of the space transacted so far in 2026, with a large proportion of this fuelled by increased activity of Amazon and increasing activity by Chinese e-commerce retailers. A number of defence-related occupiers have also taken space, with more requirements likely to come to the market in H2.
Savills says that the vacancy rate has decreased to 7.75%, down from 8.14% in Q4 2025, with 63.9 million sq ft available across 304 units nationwide, although it notes that 21 units, totalling 4.3 million sq ft, are currently under offer which should help drive down vacancy further. According to Savills, only 55% of available space is Grade A (both new and second-hand), however in specific size bands it is even more acute: for instance, there are only 13 Grade A units currently available across the UK of 400,000+ sq ft.
Only 7.6 million sq ft of speculative space is currently under construction, 63% lower than 2022’s peak and 20% lower than at the same point in 2025, indicating a more cautious speculative development market, with 3.76 million sq ft of completions in H1. Built-to-suit activity has also comprised only 11% of the market so far in 2026 – well below its long-term average of 37%.
Toby Green, head of industrial & logistics, Savills, comments: “The Big Box market remains very resilient. We are seeing a depth and breadth of demand from a variety of different occupier groups, including established and new entrant Chinese ecommerce companies and the first big defence acquisition by the MOD at Panattoni Park Swindon A. With speculative development down 63% on peak levels and 20% on 2025, supply will continue to tighten over the next 12 months and beyond.”
Kevin Mofid, head of industrial & logistics research at Savills, adds: “Many of the indicators in our data suggest that it is likely we will see an undersupply of larger units as we head into 2027 as, despite wider geopolitical uncertainly, the market continues to perform well with deals being signed from a broad range of occupier types. The recent publication of the Defence Investment Plan will bring much needed certainty to the defence sector and we expect this clarity to kick-start a wider ripple effect into the property market with the sector likely to see increased demand for advanced manufacturing, secure logistics, R&D, storage and supply chain infrastructure.”