A new report has suggested that the growth of online retail is reinforcing demand in the UK’s Big Box market, with online sales now accounting for almost 29% of retail spending.
New analysis, published this week by global real estate adviser Avison Young, shows that take-up of Big Box industrial and logistics space totalled 18.8 million ft² during the first three quarters of 2026, with year-to-date activity just 5.5% below levels recorded over the same period in 2025.
This growth in demand is being driven by both retailers and the third-party logistics operators that support them.
With a further 8.3 million ft² of space in the UK currently under offer, the market appears set to achieve a strong final quarter.
If these deals complete in Q4, annual take-up in 2026 would surpass the 22.6 million ft² of space transacted in 2025.
Third-party logistics operators accounted for 53% of take-up during Q3, while retailers represented a further 29%.
The Midlands market accounts for the largest share of leasing activity, with the East Midlands recording 1.8 million ft² of take-up in Q3, while the West Midlands reached 3.4 million ft², representing 90% of all activity during the quarter.
David Willmer, principal and managing director, industrial and logistics at Avison Young, said: “Despite a more measured third quarter, occupier demand remains resilient and we continue to see a healthy pipeline of requirements across the market.
“However, businesses are taking longer to make decisions and complete transactions than we have seen in recent years.
“Increased fuel, energy and transport costs, together with ongoing supply chain pressures and wider economic uncertainty, are causing some occupiers to take a more cautious approach to expansion and relocation decisions.
“While this is extending deal timescales, the underlying drivers of demand remain firmly in place, and we expect activity to remain broadly in line with last year’s levels by the end of 2026.”
The report also specified that Big Box investment volumes totalled approximately £400m across the quarter, falling broadly in line with the rolling five-year average and signalling continued investor appetite for prime, well-located assets with strong occupational fundamentals.
Michael Kershaw, director, capital markets at Avison Young, said: “Against a backdrop of wider economic uncertainty, rising global and UK bond yields have put further pressure on the cost of debt, creating additional challenges for investors, developers, and occupiers.
“With the Autumn Budget approaching, there is also a degree of uncertainty around the potential impact of fiscal policy on business confidence and investment decisions.
“But the Big Box market continues to demonstrate resilience, underpinned by the expansion of online retail and the demand for warehousing and distribution infrastructure needed to support it.
“While the economic outlook may influence the pace of decision-making, these underlying structural drivers should continue to support demand for Big Box industrial space.”
