Take-up of UK big box space leapt in Q3 2025, reaching 7.2 million sq ft, the highest level since Q3 2022 and 52% higher than Q3 2024, with the East Midlands seeing the highest take-up level, followed by the South East.
According to research by real estate specialist Avison Young, these latest figures reveal the third successive quarter of growth, with the East Midlands continuing to be the most active region, accounting for 39% of activity in the big box sector, which covers grade A space over 100,000sq ft.
Retailers accounted for the highest share of space (42%) from significant lettings to Marks & Spencer, which took a 1.3 million sq ft site at Prologis RFI DIRFT; Tesco, which leased a 930,000sq ft space at London Gateway; and Waitrose, which signed up for a 359,500sq ft space at Bristol 360.
Availability in Q3 2025 was unchanged from the previous quarter at 55.3 million sq ft, though the number of units on the market fell slightly from 235 to 231.
Supply continues to be led by second-hand space which accounts for 44% of the total, followed by speculative units at 40%, and space under construction comprising the remaining 16%.
However, the research found that the current supply pipeline of available units remains heavily weighted towards smaller units in the 100,000–399,999sq ft range, representing approximately 88% of all available units. The report notes that this imbalance “continues to restrict options for occupiers who have large space requirements”.
Big box transations in Q3 reached £389m, marking a 30% increase compared to Q3 2024, although volumes remain 48% below the five-year Q3 average.
Prime headline rents held firm during the quarter, consolidating the gains seen earlier in the year when values rose by an average of 4% across the North West, Scotland, and the South West. The report said this “reflects an increasingly resilient market environment.”
David Willmer, Avison Young principal and head of industrial, said: “Q3 2025 has been a strong period for big box occupier activity, with quarterly take-up reaching its highest level since 2022 and sitting just 6% below the five-year Q3 average, driven largely by retailer demand.
“The East Midlands continues to record the highest level of take-up, but this quarter also saw a notable surge in activity in the South East which accounted for almost a quarter of all take-up, its strongest performance since Q4 2023.
“Headline rents remain robust, though unchanged since the previous quarter. Overall, the outlook for the sector remains positive, with year-to-date take-up now 9% higher than last year. We predict that take-up activity by the end of 2025 could exceed 2024 levels.”
