First quantified in 2015, Savills and the UKWA (United Kingdom Warehousing Association) have developed a comprehensive database tracking warehouse units in Great Britain over 100,000 sq ft. Since then, the UK warehouse market has expanded by 61%, now totaling 690 million sq ft. Notably, the sector grew by 22% in the past three years alone, driven in large part by the impact of the Covid-19 lockdowns.
In terms of occupier mix, high street retailers dominated in 2015, accounting for 84 million sq ft of space. However, over the past decade, their footprint has grown by only 15%. Meanwhile, online retailers have seen the largest increase in space usage, but 3PL (third-party logistics) providers remain the largest occupier group in 2024. They have expanded their warehouse space by 70%, reaching 128 million sq ft.
Clare Bottle, CEO of the UKWA, comments: “The UK warehouse market shows sustained growth, continued demand, and adaptability to evolving social and supply chain trends, including online shopping and near-shoring. The dominance of online retailers and 3PLs highlights the need for more warehouses near population centers and motorways to meet growing demand for faster deliveries.”
As a result of this growth, the average size of warehouses is also increasing. Since 2015, there has been a noticeable trend toward larger facilities. Currently, warehouses under 500,000 sq ft still represent 65% of the market. However, the number of 1 million sq ft warehouses has surged by 345%, now making up 10% of the market, up from just 3% a decade ago.
There has also been a regional shift in the warehouse market. The East Midlands remains the largest area for warehouse inventory, having grown by 66% to 130 million sq ft—an increase of 51.5 million sq ft since 2015. Other core regions, including the West Midlands, South East, Yorkshire, and the South West, have seen average growth of 61%. The North West, however, lags behind with a stock increase of just 41%, due to a lack of available land for future development.
Kevin Mofid, head of industrial & logistics research at Savills, adds: “The growth in the UK logistics property market is not surprising, given its critical role in manufacturing and retail supply chains. However, both the size and geography of warehouses have shifted. For example, the ‘golden triangle’ of logistics has spread eastward, with warehouse space in the East of England growing by 104% over the last decade. While online retail and near-shoring continue to drive demand, there’s concern about whether enough well-located land is being allocated to support future growth.”