Midlands Logistics Market Bounces Back as H1 2026 Take-Up Surges Past 10 Million sq ft

July 2026 — The Midlands logistics market has delivered one of its strongest first half performances since the post-pandemic correction according to BOX4 Real Estate latest ‘Inside the BOX’ market review. They report occupier take-up reaching 10.29m sq ft across 56 transactions during H1 2026. Activity more than doubled compared with the same period last year, with transaction numbers increasing by 81%, underlining a significant improvement in occupier confidence.
The performance means that, by the halfway point of the year, occupiers had already committed to 78% of the total floorspace transacted during the whole of 2025, demonstrating the pace at which the market has strengthened. A further 7.24m sq ft across 30 buildings is currently under offer, providing a healthy pipeline heading into the second half of the year.
Large-scale logistics requirements returned to the market during H1, with almost 3m sq ft transacted across six buildings larger than 500,000 sq ft, whilst the sub-200,000 sq ft market continued to provide the greatest depth of activity, accounting for 37 of the 56 completed transactions. The largest letting of the period was Logicor’s agreement with Farmfoods for three speculative units totalling 800,000 sq ft in Daventry.
The East Midlands recorded the largest share of take-up, driven by several of the year’s biggest transactions, whilst the West Midlands generated the highest number of completed deals, reflecting continued strength across Birmingham, the Black Country and wider urban logistics markets.
Occupier demand remained across logistics, retail, manufacturing and e-commerce, although third-party logistics operators (3PLs) accounted for the largest share of take-up. BOX4 estimates that almost one-third of all space transacted during H1 was linked either to Amazon’s contract logistics network or Chinese e-fulfilment operators, highlighting the growing influence of integrated supply chains on occupational demand.
Supply levels remained broadly stable despite the significant increase in take-up. Availability currently stands at 24.27m sq ft across 157 buildings, although BOX4’s analysis highlights emerging shortages of high-quality accommodation in several key markets and larger size bands. Whilst overall choice remains healthy, much of the best Grade A accommodation is either under offer, under construction or progressing through active negotiations, leaving occupiers with fewer immediately available options.
The report also identifies growing momentum in occupier requirements. More than 37m sq ft of active requirements were tracked during H1 2026, almost double the level recorded during the previous six months, with enquiry volumes remaining well above those seen throughout the second half of 2025.

Commenting on the findings, James Clements, Director at BOX4 Real Estate, said:
“The market feels noticeably different to where it was twelve months ago. 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. The headline availability figures remain healthy, but beneath the surface we’re already seeing supply gaps emerge in certain locations and size bands, particularly for high-quality stock. That will become increasingly important as development activity remains selective.”
He added:
“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.”
BOX4’s latest ‘Inside the BOX – Midlands H1 2026’ report provides a comprehensive review of occupational transactions, availability, occupier demand, requirements and land activity across the Midlands logistics market for buildings above 50,000 sq ft.