Big-box industrial dominates Yorkshire industrial take-up
Activity for grade A distribution units measuring more than 100,000 sq ft reached 1.2m sq ft in the first quarter of 2025, exceeding the total for the whole of 2024, which closed at 712,000 sq ft.
This represents a 9% growth year-on-year for the sector, however analysis by Avison Young shows that the rest of the industrial industry has not fared quite so well.
A total of 4.6m sq ft of grade A space has been leased this quarter, measuring 10% lower than the three-year Q1 average.
This underlines growing occupier demand in the region for high-quality logistics space.
Industrial take-up levels in Yorkshire in 2023 and 2024 were relatively low, with the majority of completed deals primarily below 200,000 sq ft, whereas, in 2025 to date, there has already been greater take up of units above that size.
Following a busy first quarter, and what is predicted to be an equally active Q2 based on the deals completed so far, as well as those under offer, Yorkshire is starting to see larger gaps appear in the availability schedule as units are secured.
The national Q1 investment total reached £393m, which is still below the five-year Q1 average, however, Avison Young notes this is being driven by a lack of investment stock available within the market.
Across the UK, the sector recorded stable rental growth across most regions, highlighting ongoing demand for high-quality logistics space, with headline quoting rents for prime new Yorkshire big-box warehousing now at £9.50psf.
David Willmer, principal and managing director, Industrial and Logistics at Avison Young, said: “Our outlook for the big box market for the remainder of the year is positive.
“Despite the national decline in take-up levels compared to Q1 last year, the Yorkshire market is thriving after a couple of quieter years.
“Enquiry levels for big-box space remain encouraging and we believe that activity will be close to pre-pandemic levels.
“It is also encouraging to see a rise in investment volumes, compared to Q1 last year, highlighting the sectors’ resilience and investors’ appetite for industrial stock across the UK.”
