“In terms of leasing for sheds across the UK over 100,000 square feet (big box), Q1 2026 take-up totalled 7.6 million square feet, which is 11% higher than the same quarter last year,” said Lewis Rapley, Logistics Research Associate, Commercial Research, at Savills. “It was also 16% higher than Q4 2025, which showed momentum continued into the new year.
“While the full impact of the war in Iran is still too early to tell, it is encouraging to see demand and viewings/enquiries remain robust.”
Vincent Scammell, director of sales and operations at BizSpace, said demand for industrial premises was continuing despite wider uncertainty. “Despite a more uncertain geopolitical backdrop weighing on some sectors, demand for industrial space continues to grow,” he said. “This reflects a longer-term shift, with SMEs prioritising operational resilience, supply chain flexibility and access to well-located space over long-term fixed commitments.
“We are also seeing rising demand from defence-adjacent sectors, particularly across heavy manufacturing, technology and R&D supply chains, supported by increased government defence spending across Europe. With urgency high, existing stock remains the only scalable solution.”