Take‑up of big box industrial space in the North West fell to 1.28 million square feet in the first half of 2026, a decline of 15.5% from the same period in 2025, according to new data released by Savills.
Availability grows as used space returns
The consultancy reported that overall availability increased by 9.4% to 8.28 million square feet, lifting the vacancy rate to 8.46%. A significant contributor to that rise was the appearance of second‑hand units on the market, with 1.77 million square feet of previously occupied big box space becoming available.
In metric terms, the region saw roughly 118,900 m² of take‑up in H1 2026, while available space rose to about 769,900 m² and second‑hand availability stood at approximately 164,400 m². Savills noted that take‑up remains some 35% below the long‑term pre‑Covid average for the region.
New completions expected to bolster activity
Despite the weaker first half, work remains under way on several large schemes. There are nine developments on site, with developers forecasting around 910,000 square feet (about 84,540 m²) of big box space due for completion in the second half of 2026 across six units. The remaining three sites are expected to complete in the first half of 2027.
“Rental growth has remained resilient and may be further supported by the ongoing tightening of supply. Encouragingly, a significant volume of space under offer is expected to convert in the near term, supporting a pick‑up in occupational activity through Q3,” said Jonathan Atherton, regional head of industrial and logistics at Savills.
Savills highlighted that a pipeline of under‑offer deals should help convert enquires into actual moves, which could temper vacancy and stabilise rents later in the year.
What this means locally
For employers, logistics operators and workers in the region, the figures point to a short‑term softening in demand but also to potential opportunities. Increased availability—especially of second‑hand units—can lower entry costs for smaller firms or those seeking immediate space, while upcoming completions will create fresh options for occupiers seeking modern units.
Local councils and planning authorities should note the rise in vacancy and the return of used stock. This can affect municipal revenue streams tied to business rates and may influence job creation projections tied to new logistics and warehousing tenants.
- Take‑up (H1 2026): 1.28 million sq ft (~118,900 m²), down 15.5% year‑on‑year
- Availability: 8.28 million sq ft (~769,900 m²), up 9.4%
- Second‑hand stock added: 1.77 million sq ft (~164,400 m²)
- Under construction: 910,000 sq ft (~84,540 m²) due H2 2026
| Metric | Sq ft | Approx. m² | Change |
|---|---|---|---|
| Take‑up (H1 2026) | 1,280,000 | 118,900 | −15.5% y/y |
| Availability | 8,280,000 | 769,900 | +9.4% |
| Second‑hand availability | 1,770,000 | 164,400 | newly listed stock |
| Under construction (due H2 2026) | 910,000 | 84,540 | 6 units |
Labour and occupier implications
For workers in the distribution, warehousing and light manufacturing sectors, the market shift matters. Increased vacancy can mean pressure on rents and greater bargaining power for occupiers seeking relocations or expansions, but it may also signal slower hiring if occupiers delay moves. Conversely, the completion of modern units often attracts larger logistics operators that can generate new, often higher‑skilled employment opportunities.
Smaller operators looking to expand should monitor units coming to market: second‑hand space can offer quicker occupation timelines than new build, but may require refurbishment to meet modern standards and ESG expectations.
Outlook
Savills expects rental growth to stay resilient if a meaningful portion of space currently under offer converts to completed deals in the near term. Market observers will be watching take‑up in Q3 and Q4 to see whether the pipeline of completions and under‑offer deals reverses the first‑half slowdown.
For local authorities, developers and labour representatives, the coming months will be crucial in determining whether the North West industrial market regains momentum or settles into a period of higher availability and slower demand.
