Retail and logistics businesses accounted for more than four-fifths of the UK’s large warehouse take-up during the first half of 2026, according to research from BNP Paribas Real Estate.
Leasing activity involving industrial and logistics buildings larger than 100,000ft² reached 15.9 million ft² during the six-month period.
This included 8.4 million ft² transacted during the second quarter, 10.7% more than in Q1. First-half take-up was 2.8% lower than during the equivalent period of 2025 but remained above the report’s 14.8 million ft² benchmark, which excludes the elevated pandemic years.
Logistics operators remained the largest occupier group, accounting for 45.5% of first-half take-up. Retailers represented a further 36.7%, up from 22.5% across 2025.
BNP Paribas Real Estate said the increase reflected warehouse expansion and portfolio improvements among established UK retailers, alongside growing demand from international e-commerce and fulfilment companies.
Notable retail transactions included M&S taking 437,000ft² at Fradley 437 in Lichfield, Currys securing 397,000ft² in Nottingham and Waterstones agreeing a lease on 295,000ft² at Indurent Park Burton.
Chinese e-commerce and fulfilment companies accounted for 12% of total take-up during Q2 2026, compared with 6.2% across 2025. Businesses taking space included Cainiao, J&T Express, TopCloud Logistics and SHEIN.
Much of this demand has so far been concentrated in the Midlands, particularly within the logistics ‘Golden Triangle’, although BNP Paribas Real Estate expects international operators to expand into other UK regions as their distribution networks develop.
Total take-up in the Midlands reached 10.4 million ft² during the first half of the year, representing a year-on-year increase of 58.4%. More than three million ft² came from transactions involving facilities larger than 500,000ft².
“A pick-up in retailer demand, both domestically and from new international entrants, has shaped the market so far in 2026,” said Ben Wiley, head of industrial agency at BNP Paribas Real Estate.
The property consultancy also identified early signs of reduced availability in some parts of the market.
Available big-box industrial space fell by 2.5% during Q2 to just over 58 million ft². Although that remained 63.1% above the 10-year average, the availability of Grade A space fell by 4.2% quarter on quarter.
BNP Paribas Real Estate expects warehouse completions during 2026 to be at least 25% below the long-term average, with the pipeline likely to remain constrained in 2027.
The report suggested that falling availability of larger buildings could push more occupiers towards second-hand properties or design-and-build developments. Second-hand facilities accounted for 33.9% of Q2 take-up, compared with a rolling four-quarter average of 28.4%.
