Chinese ecommerce companies and their logistics partners accounted for 17% of UK warehouse take-up in the third quarter of 2026, more than doubling their share, according to Knight Frank.
This is equivalent to around 1.6m sq ft of the 9.6m sq ft of logistics space taken in units above 50,000 sq ft during the quarter. It is also more than double the 7% share recorded across 2025 and the first half of 2026, when Chinese ecommerce occupiers took just over 4m sq ft.
The Midlands remains the focus of demand. TikTok leased the newly completed 250,400 sq ft Rugby 251 for its ecommerce fulfilment operations, adding to a cluster of Chinese-owned ecommerce requirements in the region.
In Scotland, Hong Kong-listed J&T Express opened a 68,854 sq ft depot at Wardpark Industrial Estate near Glasgow.
“Chinese ecommerce is no longer a niche source of demand. These businesses are building permanent fulfilment networks in Britain, and with the low-value import relief due to be removed, we expect more of them to hold stock and fulfil orders from UK warehouses,” said Claire Williams, partner and head of UK and European industrial research at Knight Frank.
“Across the market, occupiers remain focused on quality, and in many regions there is very little grade-A space left. That is supporting rental growth and has started to bring developers back, although new supply will take time to reach the markets that need it most.”
Across the wider market, take-up was 7% lower than in Q2 and 8% below the five-year quarterly average. However, demand remains focused on quality, with grade-A space accounting for 59% of Q3 take-up, more than double its five-year average share of 26%.
Overall vacancy held at 8%, but modern space is scarce in many regions. Grade-A vacancy stands at just 0.5% in Wales and 0.8% in West Yorkshire, while only 137,494 sq ft of grade-A space is available across the whole of Scotland.
Developers are starting to respond. Speculative space under construction rose 45% during the quarter to 11.2m sq ft across 67 schemes.
Prime rents rose 3.5% year on year, up from 3.1% in Q2, with six of the UK’s nine prime regional markets recording annual growth, led by Newcastle, where rents are up 12.5% year on year at a record £9/sq ft.
Johnny Hawkins, head of UK logistics and industrial capital markets, added: “Investors are increasingly willing to commit capital where assets are priced correctly. With capital growth slowing, investors are now more income-focused, targeting opportunities to drive returns through rental reversion and active management.
“Institutional investors are well placed right now, given their longer-term view and lower reliance on debt. Rising rate expectations will keep buyers selective, but strong occupier fundamentals should support pricing for the best assets.”
