UK Big Box logistics market grows as online retail demand rises

Growth in online retail is driving demand within the United Kingdom’s Big Box industrial and logistics market. According to a report by real estate adviser Avison Young, online sales now represent nearly 29% of total retail spending.

During the first three quarters of 2026, the take-up of Big Box space totaled 18.8 million square feet, a figure just 5.5% below the levels recorded during the same period in 2025. Third-party logistics operators accounted for 53% of the take-up in the third quarter, while retailers represented 29%.

The Midlands region remains a primary hub for leasing activity. The West Midlands recorded 3.4 million square feet of take-up in Q3, while the East Midlands recorded 1.8 million square feet.

While demand remains resilient, Avison Young noted that businesses are taking longer to finalize transactions due to increased fuel, energy, and transport costs, alongside general economic uncertainty and supply chain pressures.