VACANCY RATES HAVE FALLEN - The Q3 figure has fallen to 5.0%

Retail warehousing vacancy rates in the UK have once again fallen, now at 5.0% at the end of Q3 2025 according to the latest research by Trevor Wood Associates (TWA), compared to 6.0% at Q2 2025 and 6.4% at the turn of the year.

The major contributor to the significant fall in vacancy is retailers continuing to take advantage of the amount of second-hand supply made available by various administrations and CVAs, in 2025 over 6.30 million sq. ft. has either opened or is due to open by early next year.

The space made available in large part by Carpetright and Homebase’s demise has been snapped up by a number of different occupiers who have faced fierce competition for quality retail warehousing in a market that has kept vacancy rates below 7% since 2021. The Range

have been the most aggressive in their rollout of new stores adding 1.6 million square feet to their portfolio (either opened in 2025 or due to open). B & M have taken a further 18 units and Home Bargains have added over 438,000 sq. ft. of space.

The Grocery sector continues to open in out of town locations with Sainsbury’s scheduled to open over 370,000 sq. ft., the food WAREHOUSE increasing their portfolio with 18 new units, Lidl adding 13 units, Aldi and Farmfoods closely following with 10 and 9 units

respectively and M & S Food Hall adding another 3.

The Health & Fitness sector have also taken advantage of the secondhand space with Pure Gym adding over 313,000 sq. ft. with The Gym Group adding five units to their portfolio.

The market continues to be dynamic and despite recent vacancies from Poundland, Hobbycraft and River Island’s restructuring a number of these units are already under offer together with a number of other units. More than 200 different retailers who’ve already taken or let space in 2025 are set to increase their portfolios well into 2026.

“Since the end of 2024, with even less development taking place, second-hand supply has

meant the vacancy rate of Open A1 non-food units has dropped to 5.2% from 6.3%. A further 3 million sq. ft. of space is currently under offer with another 660,000 sq. ft. earmarked for redevelopment, meaning the percentage of space actually available to let is as low as 3.2%.” - Liz Williamson, Trevor Wood Associates.