Traditionally, the UK industrial and logistics market below 100,000 sq ft has been under researched. With less data available and a market dominated by SMEs, information is generally more opaque compared to its bigger box cousin. However, as the resources of Savills research and economics teams have increased, we’re able to shine a light on this smaller end of the market. This year, we’ve released two papers offering insight into the sector’s demand and supply dynamics: our first Mid-Box Market overview and Big Things in Small Boxes, with valued client Potter Space.

Diverse demand and rental growth

Historically, we would have said that the bigger box segment is concerned with “moving things” whereas the small- to mid-box element is generally about “making things”. However, if we examine leasing trends in the latter, we can see that the occupier mix has evolved to encompass manufacturers, wholesalers, food production, leisure providers, and ecommerce operations who all rely on it to support production, storage and distribution.

This diversity matters. Unlike big-box logistics, which can be more closely tied to single sectors such as ecommerce, mid-box space sits at the intersection of multiple industries which gives it an inherent resilience; as one occupier group rows back another evolves to take its place.

The data reinforces this trend. Across the UK’s major markets, mid-box take-up reached 5.51 million sq ft in 2025, above pre-pandemic levels despite wider economic uncertainty. At a regional level, the picture is more nuanced, with the Midlands performing particularly strongly, but nevertheless demand is rising in five of the eight markets we cover.

A supply crunch?

On the supply side things get even more interesting. Traditionally this smaller end of the market has been devoid of build-to-suit transactions meaning that a building has to exist before an occupier commits to taking it. Therefore if take-up fails to meet expectations it’s often a supply issue stifling requirements, rather than simply weak demand.

While the 15% growth of the big-box market over the last decade is well documented, inventory growth in the sub-100,000 sq ft sector has increased by only 6%. This reflects developer prioritisation of big-box schemes, which have historically offered stronger viability profiles related to ease of pre-lets and better construction economics. A lack of new inventory means that businesses are relying on a restricted pool of aging stock that may not reflect modern needs.

Planning permissions data confirms that the situation is unlikely to change anytime soon. Since 2018 the volume of industrial planning applications submitted has substantially outpaced those approved, meaning that it’s unlikely we’ll see a development-led over-supply in the sector. It’s also worth considering the UK Government’s consultation on MEES which requires all non-domestic rented properties achieve a minimum EPC rating of C by 2027 and B by 2030. This could significantly tighten market supply, especially in the sub 100,000 sq ft I&L market where only 21% of stock in England and Wales is expected to be compliant by 2030, leaving 79% of units technically unlettable to new leases.

With build costs set to rise it seems unlikely that viability will suddenly improve in the sector. This is reflected in our data which shows that for the prime space below 100,000 sq ft many markets have less than a years' worth of supply, suggesting that it’s likely we’ll continue to see elevated levels of rental growth as we head into the latter part of the decade. So for investors the message is clear: to paraphrase Mark Twain – “buy mid-box, they’re not making it anymore”.

Further information

Contact Kevin Mofid

For more information, register here for our webinar on 30 June