By Liza Helps, Property Editor, Logistics Matters

UNSURPRISINGLY TAKE up of warehouse space rose 5% in Q2 2026 and was around 12% above the 5-year pre-pandemic average. Demand continues to be broadly steady, spanning new UK entrants, and domestic expansion within food, defence and automotive supply chains.

At the same time warehouse supply fell from 7.3% in Q1 to 7% in Q2 2026, the fourth consecutive quarterly decline. This reflects a slower return of second hand space to the market set against below-average speculative development. In Q1 speculative development starts were at a five year low and while they have picked up in Q2 to 2.8 million ft2, development starts nevertheless, remain well below the five-year quarterly average