Warehouse rents on the increase
Colliers latest Industrial and Logistics Rents Map research notes that UK’s average prime headline rents are increasing.
By Liza Helps, Property Editor, Logistics Matters
THE RESEARCH which analyses circa 90 UK submarkets, saw continued rent growth in the first half of 2025, with big box warehouses over 100,000 ft2 prime rents at £11.90 per ft2, marking a 5.2% annual rise and mid-box and multi-let industrial units at £15.55 per ft2 in June 2025, reflecting a 4% year-on-year increase.
However, the six-monthly growth for mid box units slowed to 1.5%, suggesting a more moderate trajectory compared to the sharper gains recorded in previous periods.
Colliers Head of Industrial and Logistics Research Andrea Ferranti, said: “While demand remains healthy across key industrial markets, we’re beginning to see a natural rebalancing in rental growth as supply gradually catches up in certain locations.”
The statistics for midbox and multi let space show that Yorkshire led the regions in rental growth, posting a 6.7% increase over the 12 months to June. This was followed by Glasgow and Edinburgh, where prime rents rose by 5.7%. The West Midlands recorded a 5.3% uplift, while the South East and East of England both posted gains of 4.7%. Growth of 4.0% was observed in both the South West and North West, with more moderate increases seen in the East Midlands (3.3%), Inner M25 London (3.1%), and the North East (2.9%).
Tenant incentives remain relatively stable in locations where occupier demand is strong and supply is constrained, with leasing terms broadly returning to pre-pandemic norms. However, in markets with increased availability and more active competition, developers have shown greater flexibility to secure occupancy.
Furthermore, land values remained flat on average over the past 12 months, holding steady at £2 million per acre across the UK.
Colliers Head of Industrial and Logistics Len Rosso said: “With borrowing costs expected to gradually ease and rental levels still trending upward, we anticipate renewed upward pressure on land values in core markets over the next 12 months. That said, elevated bond yields and broader economic uncertainty may temper the pace of recovery.”
