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Available supply has tightened, falling by 3% year-on-year, signalling improving balance in the market
Submarkets outside of London have seen rapid rental growth, resulting in the gap between secondary and prime locations closing within the M25. With ongoing fuel challenges and increased transport costs, occupiers are beginning to choose prime logistics locations over cheaper warehouse alternatives.
Nick Steens, Associate Director, SE Industrial
Savills is instructed on Segro Park Redhouse Road, Croydon - 154,389 sq ft of modern, sustainable units ranging from 9,155 to 83,827 sq ft.
Take-up
For prime mid-box units in London, transactional activity in Q1 2026 totalled 141,000 sq ft across four transactions, down 21% year-on-year and 30% lower than the pre-pandemic average of 201,000 sq ft. Across the size bands, units between 20,000–40,000 sq ft accounted for 65% of take-up, and 40,000–60,000 sq ft accounted for 35%. There were no transactions between 60,000–100,000 sq ft in Q1 2026.
Occupier Sector Take-up
There is a diverse range of occupiers taking space, with high street retailers accounting for 28% and the food production sector accounting for 19%. The remaining 53% is spread across a range of sectors and private companies.
Supply
The current availability stands at 2.77 million sq ft across 63 units. This has increased by 0.2% quarter-on-quarter and is down by 3% year-on-year. The majority of available space is for units between 20,000–40,000 sq ft.
By size band for units between 20,000–40,000 sq ft, available supply totals 942,000 sq ft, followed by units between 40,000–60,000 sq ft at 654,000 sq ft, 60,000–80,000 sq ft at 834,000 sq ft and 80,000–100,000 sq ft at 340,000 sq ft.
Speculative Pipeline
There is 752,000 sq ft currently under construction across 15 units. There is 233,000 sq ft between 20,000–40,000 sq ft, 40,000 sq ft between 40,000–60,000 sq ft, 211,000 sq ft between 60,000–80,000 sq ft and 268,000 sq ft between 80,000–100,000 sq ft.
In Q1 2026, there were no speculative announcements, but 398,000 sq ft of speculative completions across three different industrial estates.
Years of Supply
Across London, there is 3.98 years of supply based on the three-year average annual take-up. By size band, there are 4.35 years of supply in the 20,000–40,000 sq ft range, 2.37 years of supply in the 40,000–60,000 sq ft range, 7.30 years in the 60,000–80,000 sq ft range and 3.78 years of supply in the 80,000–100,000 sq ft range.
Quoting Rents
The prime quoting rents for London range from £16.00 psf to £37.50 psf, with quoting rents in Croydon and Battersea falling by 2% and 6%, respectively.
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