Vacancy rate falls to 5.71%, the lowest level since Q1 2023
The go-ahead for the construction of Sizewell C will bring several economic benefits over its decade-long construction phase, both directly through employment creation and also increased warehousing demand, with over 1 million sq ft of warehousing already being taken up for the project
Phil Dennis, Director, Commercial
GB200 at Great Blakenham, where Savills is marketing 203,004 sq ft for immediate occupation
Supply
Over the last twelve months, the amount of available supply has fallen by 31%, now totalling 1.8 million sq ft. This is reflected in a fall in vacancy rate to 5.71%, the lowest level since Q1 2023. Based on the average five-year annual take-up, the market is constrained with less than one year’s worth of supply available.
In terms of unit count, there are four units available in the 100,000–200,000 sq ft range, four in the 200,000–300,000 sq ft range, one unit in the 300,000–400,000 sq ft range and no units over 400,000 sq ft.
When analysing by grade, all available supply is second-hand, with 33% of Grade A space, 14% of Grade B and 53% of low-quality Grade C. There are currently no Grade A speculative units immediately available. The largest immediately available unit on the market is Novus 387, offering 387,259 sq ft of newly refurbished space in Peterborough.
Given that the majority of the space is of low-quality Grade C, and there is an increasing occupier preference for best-in-class assets, there are redevelopment opportunities ahead for investors and developers who can capitalise on the low vacancy rate and the rise in Grade A quoting rents.
Take-up
In H1 2025, take-up has fallen by 54% over the last twelve months, totalling c.179,000 sq ft across one transaction. The space transacted in H1 2025 was in the 100,000–200,000 sq ft range. When looking at grade, the space transacted was Grade A, which equates to a second-hand unit.
Savills has noted that the lack of best-in-class assets from existing and speculative development indicates East of England activity is impacted by geopolitical and economic uncertainty.
By occupier sector, the space transacted was taken by a high street retailer, representing the first transaction since H1 2022.
Although the big-box market has seen a drop in activity, the Savills in-house rental growth projections suggest, based on a baseline scenario, the region is expected to see an average rental growth of 3.7% over the next few years. Together with one unit under offer due for completion in H2 2025, this indicates strong potential for the region throughout the rest of 2025.
Development pipeline
There is now c.200,000 sq ft under construction in the region across one unit. The unit under construction is located at Port One Logistics Park in Ipswich and is due for completion in Q3 2025.