Colliers Reports Further Growth in UK Prime Industrial Rents, but Momentum Begins to Ease
Colliers’ latest Rents Map, covering around 90 UK sub-markets, shows prime industrial rents kept rising in the first half of 2025, though the pace of growth is starting to slow.
The average prime headline rent for mid-box and multi-let units reached £15.55 per sq ft in June 2025, up 4.0% year on year, but growth over the latest six months was 1.5%, a gentler rate than in earlier periods. Andrea Ferranti, Colliers’ head of industrial and logistics research, attributes this to supply catching up with demand in some locations.
Yorkshire recorded the strongest annual growth at 6.7%, followed by Glasgow and Edinburgh at 5.7%, the West Midlands at 5.3%, and the South East and East of England at 4.7% each. The South West and North West both saw 4.0%, with slower growth in the East Midlands (3.3%), Inner M25 London (3.1%) and the North East (2.9%).
For large distribution warehouses of 100,000 sq ft and above, average prime rents rose 5.2% to £11.90 per sq ft, close to the 5.4% growth recorded a year earlier. Tenant incentives are stable where supply is tight, and lease terms are largely back to pre-pandemic norms, though developers are more flexible where availability is higher.
Land values were flat at an average of £2.0 million per acre. Len Rosso, head of industrial and logistics, expects land values in core markets to come under renewed upward pressure as borrowing costs ease, although high bond yields and economic uncertainty may slow the recovery.
