The East Midlands region has dominated the UK logistics market in the first half of 2026, accounting for 38% of national take-up, according Savills research.
Activity in the region reached 5.8 million ft² across 23 units, according to the international real estate advisor.
This represents a 137% increase on the same period last year and is 141% above the pre-Covid average recorded between 2015 and 2019.
Savills states that available supply in the East Midlands currently stands at 11 million ft² across 49 units. This reflects a 30% decrease over the past 12 months, while the vacancy rate has fallen by 337 basis points to 7.51%.
Based on historic demand levels, the region now has just 1.24 years’ worth of stock remaining. The real estate advisor expects this to reduce further, with 1.3 million ft² of existing units currently under offer across the region.
The data also highlights a clear preference for best-in-class assets, as the sector continues to see a flight to quality.
In H1 2026, 50% of space let was newly built speculative development, while 18% was Grade A build-to-suit development and 4% was let before practical completion.
This means Grade A space accounted for 73% of total take-up, signalling a continued preference among occupiers for buildings with stronger ESG credentials. The remaining 27% of space transacted was second-hand stock.
Savills recorded more than 1.06 million ft² of build-to-suit activity in the East Midlands during H1 2026, accounting for 18% of the region’s total take-up.
Savills Birmingham industrial director David Tew said: “Despite challenging speculative development and funding conditions, development activity continues, with space under construction up 108% since the end of 2025.
“However, emerging shortages of Grade A stock across key locations and size bands are increasing the risk of a future supply crunch, creating opportunities for well-positioned developments.
“The East Midlands’ strong fundamentals, strategic location and sustained occupier demand mean we remain optimistic about the region’s outlook.”
