Our Q4 2024 Industrial & Logistics market update shares the trends for the sector at the end of the year in terms of both investment volumes and occupier take-up, while also looking towards a positive 2025.

The UK Industrial investment market enjoyed its busiest quarter in almost three years in Q4 2024, helping FY2024 volume to rise 13% to £11.5bn.

Investor demand for embedded rental reversion remains strong, particularly for London & South East multi-let estates. 

The take-up of industrial and logistics units over 100,000 sq ft reached 5.1m sq ft in Q4 2024, bringing the 2024 total to 27.3m sq ft; an 8% increase on the 2023 total.

There are some signs that occupier demand will grow in 2025, however the supply of Grade A space and a truncated development pipeline present occupiers with challenges to overcome.

• The sector continues to benefit from long-term, conviction-led global demand, particularly from US-based firms. 
• In turn, yields remain broadly stable, with some evidence of compression emerging as investors look beyond near-term rates market volatility. 
• UK manufacturing big box take-up represented around half of demand in Q4 2024, despite a mixed outlook for the sector.
• The big box development pipeline is expected to provide 10.8m sq ft of new, speculatively developed space in 2025. 
• The largest occupiers are seeking new developments to suit their requirements, not relying solely on market availability.