News release

JLL research shines spotlight on multi-let and mid box market boom

JLL’s new Multi-let and mid box industrial market report highlights a market characterised by strong occupier demand, limited supply, rising rents and elevated investor interest

June 20, 2022

Alyssa Dwek

UK Communications Manager

JLL’s new Multi-let and mid box industrial market report highlights a market characterised by strong occupier demand, limited supply, rising rents and elevated investor interest.

The report presents data on demand and supply based on new buildings between 5,000 and 99,999 sq ft with additional insights into rents, rental growth and investment performance.

In 2021 some 11.5 million sq ft was taken up in new units across Britain, with 6.1 million sq ft taken up in units between 5,000 and 49,999 sq ft and 5.3 million sq ft in mid box units of 50,000 sq ft and over.

In addition to traditional sources of demand, including trade counter operators, automotive repair and maintenance, self-storage, manufacturing and engineering and last mile delivery, the past couple of years have seen an explosion in demand from on-demand grocery operators and providers or users of ‘dark kitchen’ space, often involving existing secondhand units, including spaces below 5,000 sq ft.

At the end of March 2022 across Britain there was only around 6.2 million sq ft of new speculatively developed floorspace immediately available in units from 5,000 to 99,999 sq ft with a further 11.5 million sq ft under construction and available.

As a result of these demand and supply dynamics, rents for mid-box and multi-let spaces have surged, particularly over the past 12 to 18 months. In 2021, prime headline rents for units between 10,000 sq ft and 20,000 sq ft jumped 16%, based on an unweighted average of 59 markets JLL monitors, whilst rental values for ‘standard industrial’ buildings rose 10.9%, according to MSCI. In Q1 2022, prime rents rose a further 6%, and MSCI rental values for standard industrial posted an additional 3.2% uplift.

As such, these assets have seen increased appetite from investors, with the sector widely considered as integral to the growth of ‘urban logistics’. JLL forecasts that the standard industrial sector will outperform retail and offices, as well as the all property average, from a total return perspective over the five years 2022-2026, with a total return of 8.8% per annum compared with 6.4% p.a. for all property.

JLL research reveals that across the multi-let and mid box market, there is more appetite for risk among many investors due to confidence in the market owing to the imbalance between demand and supply.

Tim Clement, Head of Multi let Industrial Logistics UK at JLL, “Despite increasing economic headwinds, the demand for multi-let and mid box amongst investors is strong and investor sentiment remains positive. The market maintains fundamentals of strong occupational demand and low vacancy, providing diversification of risk due to its broad occupier base.”

Jon Sleeman, Research Director at JLL added, “The multi-let and mid box industrial market has exhibited growth and resilience over the past two years. Whilst some moderation of occupier demand and rental growth can be expected compared with the recent elevated levels, we anticipate that the sector will continue to outperform in terms of the total returns it delivers over the next five-year period. Sustainability and wider ESG considerations, industrial intensification and the re-purposing of other types of assets to meet demand for urban logistics will influence future market changes.”

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit