The Midlands logistics market gained momentum in Q3 2026, accounting for 71% of UK take-up year-to-date. It represents a marked increase on previous years, compared with 38% in 2025, 53% in 2024 and 58% in 2023.
Speculative development activity also picked up during the quarter, with space under construction increasing to 11.6 million sq ft, indicating growing confidence in occupier demand. The East Midlands performed particularly well, increasing to a 5.65% yield on prime big box logistics.
The UK logistics market on the whole accelerated in Q3 2026, with net absorption reaching its highest level since mid-2025 and the vacancy rate falling to 6.56% from 7.1% at the end of Q2, despite quarterly take-up moderating. Year-to-date take-up now stands at 16.8 million sq ft across 69 deals.
Peter Monks, senior director in CBRE’s I&L Midlands team, said: “With the Midlands take-up dominating the rest of the UK, this rapid growth reveals increased occupier confidence and an acknowledgment that well located Grade A units are in short supply with speculative development behind current levels of demand in certain size brackets.
“As operational efficiency and supply chain resilience continue to be prioritised by occupiers, giving the Midlands’ central location, connected transport networks and large labour pool advantages over other locations, the market will likely remain active as we enter Q4.”
CBRE’s Big Box market analysis tracks new leasing and freehold transactions involving logistics buildings of 100,000 sq ft or more with minimum eaves heights of 10 metres.
