Current Trends and Challenges in the UK Industrial Property Market

Introduction to Recent Market Insights

The industrial property market in the UK has faced a series of challenges throughout 2025, as highlighted in the latest report from Stiles Harold Williams (SHW). This year’s complexities stem from a combination of global uncertainty and economic concerns that have significantly influenced the decisions of occupiers and landlords alike.

Market Dynamics and Economic Factors

The SHW Q3 report indicates that various factors are making life difficult for stakeholders within the industrial property sector. A notable pressing issue is the slow decision-making process, where relocation or expansion can take a year or longer to become actionable. Such slowdowns can feel like watching paint dry in a fast-paced market.

Rents Across Key Regions

While many areas, including Shoreham, Worthing, and Lewes, have seen relatively stable rent levels, others have experienced notable fluctuations. For instance, Croydon’s rental rates have risen from £21 per ft² in 2024 to £23 per ft² this year, marking a shift in the local real estate dynamics.

Occupier Activity and Future Prospects

According to Alex Gale, Senior Partner at SHW, the take-up rates within the core South London market have significantly dipped to 120,500 ft² this year—this is notably lower than the average over the last decade. However, there’s a silver lining on the horizon, as an uptick in activity is anticipated in the latter half of the year with several deals already underway.

New Developments and Opportunities

Emerging opportunities lie within the Grade A stock market, notably featuring new builds such as GLI’s CR1 & CR2, boasting a total of 107,770 ft². Additionally, Prologis Park Beddington has four units available ranging between 15,000 ft² and 46,000 ft², showcasing the market’s adaptability to current demands.

Rising Rents and Space Availability

In areas like Kingston, Richmond, and Wimbledon, rent prices have surged by an additional £2 per ft², now reaching £23 per ft². Similarly, in Sutton and Epsom, rents increased from £22.50 to £25 per ft², indicating a robust market interest, with demand for space also showing a remarkable increase. Burgess Hill and Haywards Heath have also reported rent growth, rising to £16.50 per ft², and take-up levels nearing 75% of total 2024 figures.

Conclusion: What Lies Ahead

With the construction of new industrial units in various locations across the UK, options for occupiers are expanding, making it a more favorable market for tenants. Tim Hardwicke, SHW’s head of agency, believes the recent increases in availability hint at a more tenant-centric market, where flexibility and competitiveness will define the landscape.

Despite the rise in rents, the competition for high-quality industrial spaces remains significant. As some regions experience rental pressure, SHW notes the necessity for landlords to offer various incentives and longer rent-free periods to attract business. However, the light at the end of the tunnel is that deals are still materializing, especially in some regions across the South East.

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