Despite 1.88 million sq ft of take-up, limited XL availability, with one unit over 500,000 sq ft, remains the defining constraint.
Although H1 2026 has seen take-up slow and vacancy increase to 11.49%, the region as a whole has a limited pipeline, especially for units over 400,000 sq ft, which will continue to support future rental growth in light of the increasing demand we are seeing for larger units.
Tom Asher, Director, Industrial and Logistics
Doncaster 420 – Savills is instructed to market Doncaster 420 on behalf of Panattoni – the largest immediately available warehouse in Yorkshire
Supply
By the end of H1 2026, the available warehouse space compared to H1 2025 had increased by 25%, reaching 12.3 million sq ft across the two regions. Yorkshire & The Humber accounted for 9.5 million sq ft, with a vacancy rate of 11.33%, and the North East had 2.7 million sq ft, with a vacancy rate of 12.08%. The overall vacancy rate for the region now stands at 11.49%, up 213 basis points from the end of H1 2025.
There are 28 units in the 100,000–200,000 sq ft range, 14 units in the 200,000–300,000 sq ft range, seven units in the 300,000–400,000 sq ft range, four units in the 400,000–500,000 sq ft range, and one unit over 500,000 sq ft.
When analysed by grade, 39% is categorised as Grade A speculative development, 17% as second-hand Grade A, 8% as Grade B, and 36% as low-quality Grade C. In terms of specifications, the available supply includes 62% second-hand space and 38% new speculative space.
Despite increasing demand for larger XL boxes or those exceeding 400,000 sq ft, the total available stock in the region still falls short of meeting this need. As of the end of H1, only five units – or 9% by number – are available over 400,000 sq ft; the largest immediate option is Central A1(M) 785, a new speculative development covering 783,309 sq ft.
418,335 sq ft is currently under offer as standing stock, spread across three units, one in Peterlee (Davy Drive), one in Billingham (Pegasus House) and one in Doncaster (Doncaster 191). This could help boost transactional activity in H2 2026, following an H1 performance that is 42% lower than the same period last year.
Take-up
Across Yorkshire and the North East, transaction activity reached 1.88 million sq ft across 10 deals in H1. The region had a strong start, with 1.5 million sq ft let in Q1, but Q2 was slower, dropping to just 394,290 sq ft, which was 158% lower than the same period last year and 20% below the long-term average, excluding Covid.
Proportionately, 1.61 million sq ft was occupied in Yorkshire & The Humber, and 268,891 sq ft in the North East. That said, by unit count, there were seven transactions in the 100,000–200,000 sq ft range, two in the 200,000–300,000 sq ft range, none in the 300,000–400,000 sq ft range, and one transaction over 400,000 sq ft. There were no deals exceeding 500,000 sq ft, further evidence of the supply crunch the region is experiencing for XL boxes, as the last deal in this size bracket was ID Logistics’ acquisition of Sherburn 550 in Q2 2025.
When analysing take-up by specification, 58% of the space transacted was second-hand, and 42% was new speculative development. There has been no built-to-suit (BTS) activity so far in 2026, reflecting a more challenging development and funding market.
In terms of grade, 42% involved new speculative Grade A space, 22% involved second-hand Grade A space, 5% Grade B space, and 30% low-quality Grade C space. The dominance of Grade A space, accounting for 64% of transactional activity in 2026, highlights occupiers' preference for top-tier assets.
By occupier sector, most activity was mainly divided between two sectors: 51% from third-party logistics and 14% from parcel companies. The rest of the activity included various sectors, notably manufacturing and wholesalers.
Development pipeline
There are currently two units under construction: Workshop 460 and Wakefield 500, with Wakefield 500 to commence on-site soon. However, none of this space is scheduled for delivery in 2026, leaving larger requirements without both existing and pipeline options. Consequently, we expect that, due to the lack of available or planned supply of such units, occupiers may choose to revisit BTS plans or expand their search further afield, where more options may be available.
This further highlights the undersupply of Grade A space, especially in certain sub-markets like West Yorkshire, and across specific size ranges, particularly at the larger end. It creates opportunities for future development and also supports strong rental growth prospects.