TREVOR WOOD ASSOCIATES REPORTS FALL IN RETAIL WAREHOUSING VACANCY RATES

Retail warehousing vacancy rates in the UK fell to 4.8% at the end of 2025 according to the latest research by Trevor Wood Associates, the lowest ever recorded.

Since the previous low of 4.9% at the end of 2017, the vacancy rate rose to 6.4% at the end of 2024 but by the middle of 2025 this had decreased to 6.0% before falling much further to 4.8% at the end of the year.

Liz Williamson of Trevor Wood Associates commented: “Following the limited amount of CVA’s and Administrations the amount of “Second-hand” supply fell significantly during 2025. This was further compounded by a lack of new developments or scheme extensions coming forward, resulting in a constrained supply pipeline. Consequently, when space does become available following retailer closures, it is typically re-let almost immediately”. The Q4 2025 vacancy rate is now 4.8% which is lower than the previous record low vacancy rate of 4.9% recorded eight years ago. The largest decrease saw the rate for Bulky or Restricted units crash from 6.7% to 4.1% with the Open A1 Non Food rate sinking to 5.1% from 6.6% and the Open A1 vacancy rate fell to 5.2% from 6.0%, confirming the demand for quality units.

A significant proportion of retail warehouse space vacated over the years by failed retailers continues to be successfully re-let, while a sizeable number of units are under offer. Even better news is that, apart from companies such as Pizza Hut, Poundland and Hobbycraft, the Out of Town sector has seen considerably fewer CVAs and Administrations in the past 12 months compared to previous years. This trend looks set to continue as the Q1 2026 vacancy rate remains at 4.8% and may fall again mid-year.

Once again, new developments remain at an all time low, with just 21 schemes featured in our development pipeline thought likely to proceed – meaning new parks that are being developed are able to be well let and existing second-hand space is filling the gap for the expansion of growing retailers. Many older developments have disappeared from the market entirely, with several schemes being repurposed in the last 2 years for new uses including self storage units, industrial and residential led developments, whilst the demand for standalone grocery units continues. Extensions including food pods and electric charging stations continue to dominate, removing over supply of parking and further increasing footfall for the out of town sector.

Over the last 39 years there has been a major shift by retailers to occupy out of town locations due to increasing consumer demand. This year B & M added a further 170,000 square feet and are now the leading tenant, overtaking perennial no 1, B & Q, while Mountain Warehouse appears in the top 50 tenants for the first time. The most significant increase in floorspace was seen by Home Bargains with 13 more stores than this time last year and they move up to third place, while The Range added a further 330,000 square feet.

While discounters and food store expansion continues to dominate the lists of growing tenants throughout 2025, gyms are also expanding with Pure Gym now open on 168 retail parks with The Gym present on 63 parks and JD Gyms now feature on 33 parks.”

Middlebrook Retail & Leisure Park in Bolton continues to be ranked the number 1 retail park in the UK, with Castlepoint in Bournemouth and Clifton Moor Centre in York coming in at 2^nd and 3^rd place. Westwood Road in Broadstairs is ranked as the number 1 retail warehouse cluster and The O2 Entertainment District in Greenwich is ranked the number 1 leisure scheme.

B & M, with 7.5 million sq. ft., is now the largest Retail Park tenant. The largest decrease in space was recorded by Poundland following the closure of stores following their recent restructuring.

Morgan Williams are the leading retail warehousing letting agent for the first time with instructions totalling over 31 million square feet. For the seventeenth year, Savills maintain their position as the leading managing agent – managing over 45 million sq. ft. across 401 schemes, which widens the gap between them and their nearest competitor, Workman, to 26 million sq. ft.

Trevor Wood Associates’ research identified 1,707 established schemes that are trading or under construction. These include 97 Leisure Parks, 147 Leisure schemes, 949 Retail Parks, 129 Shopping Parks, 42 Retail and Leisure Parks and 303 Retail Warehousing developments.

Realty Income increased their portfolio once again this year and remain not only the leading investment manager in the UK for both Retail Warehousing and Retail Parks but also the leading direct property owner for both Retail Parks and Retail Warehousing. British Land have also shown a significant increase in retail ownership and are ranked second in all four categories.

To meet growing demand for the research, Trevor Wood Associates has expanded their online Definitive Guide platform to complement its reviews and run alongside its existing database products.

For further information please contact:

Liz Williamson, Trevor Wood Associates 01494 715846 liz@trevorwoodassociates.co.uk