Midlands logistics market surges in first half of year

Midlands industrial and logistics enjoyed one of its strongest first-half performances since the post-pandemic correction, according to research by West Midlands-based agents, BOX4 Real Estate.

According to the firm’s ‘Inside the Box’ market report, 10.29m sq ft was transacted across 56 deals during the opening six months of 2026, more than double the level recorded during the same period last year. Transaction numbers also rose by 81%, signalling a significant improvement in occupier confidence.

The East Midlands recorded the highest share of take-up, driven by several of the year’s largest transactions, while the West Midlands saw the greatest number of completed deals, reflecting continued activity across Birmingham, the Black Country and surrounding urban logistics markets.

However, the pace of take-up means supply gaps are starting to emerge for high-quality, Grade A space across the region, according to director, James Clements.

“The market feels noticeably different to where it was twelve months ago,” he said.

“We’re seeing occupiers make decisions more quickly, larger requirements return and confidence gradually rebuild across much of the Midlands. Importantly though, this isn’t a market that’s improving everywhere at the same pace.

“Our view is that H1 marks a genuine turning point rather than a short-term spike in activity. The combination of a strong pipeline of occupier requirements, improving transaction volumes and a growing amount of space already under offer provides a solid platform for the second half of the year. The challenge now is ensuring the next generation of development comes forward in the locations where occupier choice is already beginning to tighten.”

Large-scale logistics requirements returned, with almost 3m sq ft transacted across six buildings larger than 500,000 sq ft. The largest deal saw Farmfoods agree to occupy three speculative units totalling 800,000 sq ft at Logicor’s development in Daventry.

Third-party logistics operators accounted for the largest proportion of take-up, with BOX4 estimating that almost one-third of all space transacted was linked to either Amazon’s contract logistics network or Chinese e-fulfilment operators.

Despite the increase in activity, supply remained broadly stable at 24.27m sq ft across 157 buildings, although BOX4 said shortages of high-quality Grade A space are beginning to emerge in several key markets.