SEGRO sees warehouse rents rise 37% at review in third quarter of the year
Investor developer SEGRO has seen rents rise 37% across the board at review, renewal and regears in the third quarter of 2025 with UK rents rising 49% reflecting how much rents have increased nationally since the Pandemic.
By Liza Helps, Property Editor, Logistics Matters
THE COMPANY carried out some 170 rent reviews, renewals and regears between June and the end of September this year. It noted in its third quarter results that: “Our prime, modern portfolio continues to perform well as we capture reversion, reflected in a year-to-date uplift of 37 per cent across 170 rent reviews, renewals and regears (UK: 49 per cent, Continental Europe: 8 per cent), which supports continuing strong like-for-like net rental income growth.
While there has been a substantial shift in rent level, occupiers seem resilient with SEGRO reporting occupancy and customer retention high at 94.3% per and 86% respectively.
SEGRO Chief Executive David Sleath, said: “SEGRO has had a strong third quarter, with improving occupier sentiment reflected in £22 million of new headline rent signed during the period, bringing the total signed year-to-date to £53 million. We have made good progress in capturing the significant mark-to-market rent potential in our existing portfolio, whilst maintaining occupancy levels and retaining customers.
“Momentum continues to build in our profitable development programme. We had our strongest quarter of pre-letting activity since Q1 2024, signing £7 million of deals versus £3 million in H1 2025, and have a healthy pipeline of further projects under discussion with enquiry levels increasing post the summer.
“These factors give us confidence in our ability to capture the embedded growth potential in our existing portfolio and build out our exceptional landbank.”
Development completions during the period totalled 34,800 m2 of new space and added £8 million of headline rent, including the completion of our latest powered shell data centre on the Slough Trading Estate. This takes completions so far in 2025 to 231,600 m2, equating to £27 million of expected rent, 89 per cent of which has been secured.
