Press Release
UK Logistics Sector Sees Continued Market Improvement
October 2, 2026
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The UK logistics market gained momentum in Q3 2026, with net absorption reaching its highest level since mid-2025 and the vacancy rate falling to 6.56% from 7.1% at the end of Q2, despite quarterly take-up moderating. Year-to-date take-up now stands at 16.8 million sq ft across 69 deals.
Take-up totalled 5.3 million sq ft during the quarter, slightly down from Q2. However, strong demand for existing space, shown in the rising levels of stock under offer, helped reduce the volume of immediately available space and supported a significant improvement in market fundamentals.
The Midlands continued to drive occupier activity, accounting for 71% of UK take-up year-to-date. This represents a marked increase on previous years, compared with 38% in 2025, 53% in 2024 and 58% in 2023. Meanwhile, speculative development activity picked up during the quarter, with space under construction increasing to 11.6 million sq ft, indicating growing confidence in occupier demand.
We're seeing occupiers continue to engage actively with the market, particularly in the big box segment, with activity spanning both new-build and existing facilities. Well-located, high-quality logistics space continues to be the priority as occupiers focus on operational efficiency and future growth. As we move into the final quarter of the year, the leasing pipeline remains encouraging, with a number of active requirements from a diverse occupier pool is underpinning confidence in the market.
*CBRE's Big Box market analysis tracks new leasing and freehold transactions involving logistics buildings of 100,000 sq ft or more with minimum eaves heights of 10 metres.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.co.uk.