Midlands logistics deals surge in first quarter
The Midlands logistics market has made a fast start to 2026, with new figures pointing to a sharp rise in activity and strengthening occupier demand across the region, according to latest figures from BOX4 Real Estate.
Fresh data from the firm shows 4.92m sq ft of space was taken up in the first quarter of the year across 31 deals, marking a significant increase on the same period in 2025 – when 13 deals were tied up for around 1.9m sq ft of space.
According to director James Clements, surging occupier demand is being led by direct distribution operators, who accounted for almost half of Q1 take-up, reflecting a continued focus on supply-chain efficiency and network consolidation.
“The Q1 numbers are encouraging but not surprising,” he said.
“We came into 2026 with a lot of space under offer, a strong pipeline of requirements and a market that had spent most of 2025 finding its feet. What we’re seeing now is occupiers acting with more conviction.
“Decisions that were paused are now progressing, and new requirements are coming through at a decent rate. The sites and buildings that tick the right boxes on location and spec will go well this year.”
Among the standout deals, Logicor completed the letting of three new buildings in Daventry totalling 800,000 sq ft to Farmfoods, while DHL secured 515,000 sq ft at Derby Commercial Park.
Rental growth has also continued, with record rents achieved on mid-box units in Birmingham and Coventry. Schemes including Barberry 78 and Tritax’s Vulcan have both secured rents in the low teens per sq ft.
Regionally, Northamptonshire emerged as the most active submarket, closely followed by Derbyshire. Elsewhere, the Black Country, Coventry & Warwickshire, and Staffordshire all recorded a strong start to the year.
The figures also show a sustained appetite for high-quality space, with speculative Grade A buildings making up 32% of transactions, reflecting a continued preference for modern, ready-to-occupy units — a trend that gathered momentum throughout 2025.
While headline supply remains substantial — with 26.32 million sq ft available across 166 buildings — underlying conditions suggest a tightening market. A further 5.37 million sq ft is currently under offer, with 4.18 million sq ft under construction.
Development activity is returning, but selectively and below historical levels, which is beginning to concentrate pressure on well specified stock in prime locations especially in certain size ranges.
