Online retail and manufacturing demand remain resilient, accounting for 81% of take-up, while limited Grade A options are tightening competition for modern space.
Rental growth has remained resilient and may be further supported by the ongoing tightening of supply. Encouragingly, a significant volume of space under offer is expected to convert in the near term, supporting a pick-up in occupational activity through Q3.
Jonathan Atherton, Regional Head, Industrial and Logistics
Atlantic Park – Savills is instructed on Atlantic Park, with Phase 1 comprising 350,000 sq ft across four units and Phase 2 of 440,000 sq ft of speculative construction that is currently underway
Supply
Compared to 12 months ago, when the total available supply was 7.57 million sq ft, overall availability has risen by 9.4% to 8.28 million sq ft, spread across 39 units. This results in a vacancy rate of 8.46%, up from 7.84% a year earlier, now equivalent to approximately 1.64 years’ worth of supply.
The notable increase in supply during the first half of 2026, compared with the same period last year, has been mainly driven by second-hand units entering the market. Over this period, 1.77 million sq ft of additional second-hand space has re-entered the market; however, out of 8.28 million sq ft available, the majority consists of high-quality Grade A space. Proportionally, 43% is Grade A speculative space, 19% is second-hand Grade A space, 25% is second-hand Grade B space, and 13% is second-hand Grade C space.
By size band, 24 units fall within the 100,000–200,000 sq ft range, eight in the 200,000–300,000 sq ft range, four in the 300,000–400,000 sq ft range, one in the 400,000–500,000 sq ft range, and two exceed 500,000 sq ft. However, the region is experiencing a distinctly regional supply-and-demand landscape, with significant variations depending on quality and size.
For instance, although most available space consists of new Grade A stock, it is mainly concentrated in the 100,000–200,000 and 200,000–300,000 sq ft size ranges, leaving larger occupier requirements with fewer options and a more competitive market. As a result, take-up has primarily been driven by the second-hand market, which offers greater choice, while those able to secure new, top-tier assets are witnessing record rents.
Take-up
Despite the increasingly familiar backdrop of economic and political uncertainties, where decision-making is taking longer or being delayed, H1 2026 take-up in the North West reached 1.28 million sq ft, 15.5% below H1 2025 and 35% below the long-term pre-Covid average (2007–2019).
The primary driver of take-up in the first half of 2026 has been second-hand space, alongside two speculative Grade A developments totalling 245,000 sq ft, which represent 19% of total demand during this period. Out of the total second-hand take-up, amounting to 1.04 million sq ft, 26% is second-hand Grade A space, 44% is second-hand Grade B space, and 11% is second-hand Grade C space.
Although overall take-up has decreased compared to last year, there is a clear demand from occupiers for top-tier buildings, whether new speculative developments or refurbished. The problem is that current supply is struggling to meet their needs. This issue is worsened when considering quality and size segments, as there is a noticeable shortage of these units in core prime markets.
Of the demand, 51% of take-up was attributed to online retail, with notable deals including AO.com acquiring Alsager 325 and a Savills deal, alongside a substantial share of manufacturing-related transactions, which accounted for 30% of the total H1 take-up. This rise in domestic manufacturing demand is driven by geopolitical tensions and the increasing urgency for occupiers to relocate their supply chains to nearshore areas.
Development pipeline
Looking ahead, the pipeline has progressed significantly since H1 2025. Currently, there are nine developments on site, up from four in December 2025, and two developments that are pending but have confirmed announcement and completion dates. The 107,500 sq ft unit, AP 107, is one of these sites under construction, which has been let before practical completion, a positive sign of strength for speculative development in the North West. Of the units on site, there are 910,000 sq ft across six units, with an expected completion in H2 2026. The remaining three units under construction are projected to be completed in H1 2027, adding more Grade A stock to the region.
Of the units under construction, six are within the 100,000–200,000 sq ft size range, which will further increase supply in this category in the short to medium term. The remaining three units fall within the 200,000–300,000 sq ft bracket. Ultimately, the combination of existing stock, whether new or second-hand, and the current pipeline appears set to leave larger, bespoke occupier requirements unmet in the North West – unless they opt for a built-to-suit solution, which has not typically been characteristic of the North West market.