Distribution firms dominate Yorkshire’s industrial market
Value, labour availability, and location continue to underpin strong demand for Yorkshire’s industrial and logistics sector in 2025.
Knight Frank’s latest Logic Report shows that take-up by distribution firms across Yorkshire has risen this year.
In South Yorkshire and North Derbyshire, take-up by distribution companies has tripled year-on-year, solidifying their position as the primary source of demand and accounting for 51% of total activity in the four quarters to Q3.
In West Yorkshire and the Humber region, distribution firms have also led demand, representing 61% of take-up over the same period, up sharply from 27% a year earlier.
In South Yorkshire, manufacturers have expanded their footprint, increasing their share of take-up to 37%, up from 16% last year.
Retailers have also contributed to this year’s overall growth, reflecting broad-based occupier demand across key sectors.
By the end of Q3, South Yorkshire recorded 2.6m sq ft of take-up for the year, well above the sub-1m sq ft achieved in all of 2024, with one quarter still remaining.
In West Yorkshire, take-up reached 1.9m sq ft at the end of Q3, with an additional 375,000 sq ft under offer, indicating robust underlying demand.
This suggests that last year’s total – and the pre-pandemic annual average of 2m sq ft – is likely to be exceeded.
Supply in West Yorkshire rose in Q3, with the vacancy rate increasing to 7.5% as several second-hand units returned to the market.
These included Birstall 140 in Batley, Goole 232 (a 232,000 sq ft facility), and Howden 37, Ebuyer’s former 278,000 sq ft distribution centre in East Riding.
Rebecca Schofield, partner and Sheffield office head at Knight Frank, commented on the South Yorkshire and North Derbyshire market: “The South Yorkshire region continues to see a diverse mix of occupiers taking space.
“We see continued demand from both B8 and B2 occupiers, with 37% of take-up over the last 12 months coming from manufacturing occupiers.
“The region benefits from a healthy supply of units, offering choice for occupiers seeking space with excellent road connectivity and access to a strong labour pool. Favourable incentives are also being offered to tenants.
“While supply has increased overall, it remains limited in some size ranges – particularly within the 100,000-150,000 sq ft bracket.”
Significant transactions across Yorkshire include:
- Mileway’s 60,791 sq ft Unit 7 at Parkway One Business Park, Sheffield, let to 4S Distribution on a five-year lease at £7.75/sq ft.
- Boxt, a home energy solutions provider, agreeing to lease the 50,225 sq ft Unit 2 Gateway 36 in Barnsley for 10 years at £8.25/sq ft.
- NG Bailey taking Shawcross 115, a 115,000 sq ft refurbished warehouse off Junction 40 of the M1 from Crossbay, on a 10-year lease at £7.75/sq ft headline rent.
Several occupiers have also begun self-build projects, including:
- TJ Morris’ 800,000 sq ft facility at Unity Connect, Doncaster.
- Sheffield Forgemasters International’s 320,000 sq ft facility at Weeden Street, Sheffield.
- Newcold’s 41m-high extension in Wakefield.
- PCL Logistics’ new facility at Premier Park, Doncaster.
Commenting on West Yorkshire, Iain McPhail, partner in Knight Frank’s Yorkshire I&L team, said: “Demand so far this year has focused on units within the 50,000-100,000 sq ft range, which account for half of all take-up.
“Larger transactions are taking longer to conclude.
“Only a small number of grade A units remain available, including Baytree Developments’ two-unit scheme in Stourton, Leeds (76,000 sq ft and 145,000 sq ft), the last remaining 60,000 sq ft unit at Leeds Valley Park, and Leftfield Park, Wakefield (57,000 sq ft).
“Worryingly, there are no new schemes over 50,000 sq ft currently under construction or in the short-term pipeline, which is expected to constrain supply for the foreseeable future.”
