Take-up
With macro headwinds continuing throughout the year, activity in the occupier market naturally slowed, resulting in 5.2 million sq ft transacted across 24 deals in 2025, a 7% decrease from 2024. Nonetheless, 2025 remained 28% above the long-term, pre-COVID average (2007-2019), indicating a post-pandemic adjustment.
Of the 5.2 million sq ft transacted, 45% was newly built speculative development, 35% was second-hand, and 20% was build-to-suit (BTS) space. There was a 26% decrease in the amount of second-hand space taken in 2025 (2.45 million sq ft) compared to 2024, while we observed a simultaneous rise in new build space let in 2025 (2.33 million sq ft), up 30% from the previous year. Such a trend highlights occupiers’ apparent preference for the appropriate space.
The region recorded 14 transactions in the 100,000 to 200,000 sq ft size range, six in the 200,000 to 300,000 sq ft range, two in the 300,000 to 400,000 sq ft range, one in the 400,000 to 500,000 sq ft range, and one above 500,000 sq ft. However, compared to their long-term (2007–2019) averages, these figures are all below, except for the 200,000 to 300,000 sq ft range, which recorded two more deals in 2025 than its historical average of four per annum.
Occupier activity in the region for 2025 was primarily driven by third-party logistics providers (3PLs), who account for 56% of activity (2.9 million sq ft); a significant increase from their share in 2024 (15%) and a 201% rise compared to their pre-pandemic, long-term (2007–2019) average. Notable deals include two of the largest, both in Staffordshire and each exceeding 400,000 sq ft: Palletways and Pallet-Track. The next-largest contributor to take-up was manufacturers at 18%, reflecting their growing presence in the region, which is expected to boost take-up further both directly and indirectly, to support these activities.