Big sheds show robust rental growth
The UK’s biggest warehouses have outperformed their smaller counterparts from a rent growth point of view in the last five years according to the latest research from DTRE.
By Liza Helps, Property Editor, Logistics Matters
DTRE’S HEAD of research data and insights Rob Taylor said: “While often characterised as slow moving and binary, the UK’s biggest warehouses have outperformed their smaller counterparts from a rent growth point of view with warehouses between 100,000 ft2 and 300,000 ft2 seeing renl growth of 4.9%, while units over 300,000 ft2 have grown at 8.6% per annum over the past five years.
“There’s very little between the top rents being achieved on 100,000 ft2 units and the country’s very biggest 500,000+ ft2.”
DTRE research reported that the UK’s XXL big boxes bracket (500,000 ft2 +) has recorded the fastest growth (10.7% per annum) over last five years, with the 100-200,000 ft2 range seeing the slowest (2.7%).
Taylor noted: “With more availability at the smaller end, rents for larger warehouses are expected to continue their relative outperformance – could the rarity of the UK’s biggest sheds now be commanding a premium?”
Investors certainly seem to be keen on them according to the latest Big Box research by Avison Young big-box investment activity increased 9% year-on-year in Q1 2025 totalling £393 million, which is still below the five-year Q1 average, however, this is being driven by a lack of investment stock available within the market.
Key transactions included Valor Real Estate Partner, QuadReal’s acquisition of Tesco Distribution Centre in Thurrock for £130m and Tritax Big Box’s purchase of the Sainsbury’s Distribution Centre in St Helens for £75m.
