News release

UK industrial & logistics take-up hits 8.6 million sq ft in Q1 2022 as demand remains elevated

Occupier demand shows no signs of easing, with some 8.6 million sq ft taken up in the first quarter of 2022 in Grade A buildings of 100,000 sq ft and over

April 12, 2022

Alyssa Dwek

UK Communications Manager

Occupier demand in the UK industrial and logistics market shows no signs of easing, with some 8.6 million sq ft taken up in the first quarter of 2022 in Grade A buildings of 100,000 sq ft and over. This compares with 6.9 million sq ft in the previous quarter and 6.6 million sq ft in the same quarter a year ago.  Therefore, Q1 2022 represents a 23% increase in floorspace taken-up compared with Q4 2021 and a 30% increase compared with Q1 2021. In addition to concluded transactions, at the end of Q1 2022 some 4.8 million sq ft was under offer.

The level of take-up was driven by demand for new space, which at 7.2 million sq ft accounted for 84% of all take-up in Q1 2022.  Over the quarter, 52% of all new space taken up comprised space built or under construction speculatively, while 48% was Built to Suit (BTS) space.  

Logistics Service Providers accounted for 39% of total take-up, retailers (including pure-play internet retailers) accounted for 35% and manufacturing companies accounted for 14% of all floorspace. ‘Other’ uses made up 12%.

Available supply across the UK increased by 9% over the quarter to 20.4 million sq ft including 4.8 million sq ft under offer.  The available space comprised 4.1 million sq ft in immediately available ready-to-occupy buildings and 16.3 million sq ft under construction speculatively. 

The total available supply represented a UK vacancy rate of 5.7%, or just 1.2% if speculative space under construction is excluded. 

In the year to March 2022, prime headline logistics rents increased by 19% across the 32 locations that JLL monitors across the UK.

Ed Cole, Head of Logistics, JLL, commented: “It was another impressive quarter for demand and take-up in the logistics market to begin the year. This is especially so when considered against a backdrop of historically low supply and further economic uncertainty. We are still seeing rents increasing in all major markets with buoyant demand against supply being further squeezed by material delays in speculative development construction programmes.”

Jon Sleeman, Director UK Industrial & Logistics Research, added “The occupier market continues to exhibit strong demand and supply dynamics despite a more challenging economic outlook.  Demand in the first quarter of 2022 came from a diversity of companies and we continue to see a good level of active requirements.” 

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 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit