April 2026 — The Midlands logistics market has opened 2026 at pace, with BOX4 Real Estate recording 4.92 million sq ft of take-up across 31 transactions in Q1, a sharp uplift on the 1.9 million sq ft across 13 deals recorded in the same period last year.
Occupier demand is being led by direct distribution operators, who accounted for 47% of Q1 take-up, reflecting a continued focus on supply chain efficiency and network consolidation. Speculative Grade A buildings featured in 32% of transactions, consistent with the preference for modern, operationally ready space that defined the 2025 market.
Northamptonshire was the most active submarket in Q1, narrowly ahead of Derbyshire. The Black Country, Coventry & Warwickshire and Staffordshire also had an active start to the year.
Key deals so far this year include Logicor’s letting of three new buildings in Daventry totalling 800,000 sq ft to Farmfoods and DHL’s acquisition of 515,000 sq ft at Derby Commercial Park. In addition record rents have been set on mid box units in Birmingham and Coventry with Barberry 78 and Tritax’s Vulcan both securing rents in the low teens per sq ft.
On the supply side, 26.32 million sq ft remains available across 166 buildings, but the picture beneath the headline is tightening. A further 5.37 million sq ft is under offer and 4.18 million sq ft is 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.
Commenting on the year so far, James Clements, Director at BOX4 Real Estate, said:
“The Q1 numbers are encouraging but not surprising. 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.”
BOX4 are tracking a further 5.37m sq ft as under offer across 20 transactions, including Build to Suit, in the Midlands expecting to complete during Q2.
About BOX4 Real Estate Four partners, one goal – With over 75 years of combined experience, BOX4 Real Estate brings deep knowledge and a practical, energetic approach. BOX4 Real Estate is an independent consultancy focused on the UK logistics and industrial property markets, providing specialist advice on disposals, acquisitions, land, and capital markets, led by a team of experienced professionals with a long-standing track record in the sector. James Clements – 07436 165015 – j.clements@box4realestate.co.uk Ed Kennerley – 07972 187779 – e.kennerley@box4realestate.co.uk Media Contact: James Clements (07436 165 015 / j.clements@box4realestate.co.uk)