Grade A speculative warehouse space availability falling
According to the latest industrial and logistics property statistics from DTRE, while overall vacancy is still somewhat elevated at circa.7%, speculative Grade A availability as a proportion of total stock is just 2.9%.
By Liza Helps, Property Editor, Logistics Matters
THE MESSAGE is repeated across the board as Q1 2026 statistics start to pour in. Savills research notes that some 7.36 million ft2, has been taken up in the Q1 with a further 5.98 million ft2 under offer, positively spread across the regions, but like DTRE, it is stating that speculative space under construction is diminishing fast not least because it is being taken up [Research by Box 4 Real Estate noted in the Midlands alone that 32% of deals transacted were for speculative space.] and crucially is not being replaced with new development starts.
Savills notes: “While there is 6.7m ft2 of space under construction speculatively, this is down 67% compared to the peak of 2022.”
Knight Frank partner and Head of UK & European Industrial Research Claire Williams explained: “In recent years, developers have become increasingly selective in their approach to new schemes, due to higher development and financing costs. Speculative big‑box starts have slowed materially compared with 2021/2022 levels, while build‑to‑suit (BTS) development remains the most deliverable route to market, supported by tenant pre‑commitments that underpin funding and viability. As a result, much of the current development pipeline is pre‑let, reflecting a more risk‑managed supply response.
“Despite this, while overall vacancy has stabilised, it has not reduced materially, but this is being driven less by new completions and more by second‑hand space returning to the market as occupiers consolidate or relocate into newer facilities.”
