The delivery of 2.37 million sq ft of speculative space has boosted supply, positioning the South West for larger-unit demand nationally.
The speculative development delivered across the region reflects a shift towards occupiers requiring larger accommodation. As a result, this new supply positions the South West strongly at a national level to capitalise on this trend.
Robert Cleeves, Director, Industrial and Logistics
The Ark, Groundwell – Savills is instructed on the letting of The Ark, Groundwell in Swindon, comprising 115,000 sq ft
Supply
At the end of H1 2026, available supply amounts to 4.89 million sq ft across 20 units, with supply rising significantly since the end of H1 2025. This is due to 1.5 million sq ft across two units of speculative development reaching practical completion in Q2 2026. This increase in supply reflects an increase of 628 basis points in the vacancy rate from 5.71% to 11.99%.
Across the region, available supply by grade shows that new, speculative Grade A space makes up the majority of the supply, at 57%, reflecting the substantial amount of speculative development in the region over the last few years. 5% is second-hand Grade A space, 24% is Grade B space, and 14% is low-quality Grade C space.
Regarding unit sizes, there are 11 units available in the 100,000–200,000 sq ft range, five in the 200,000–300,000 sq ft range, one in the 300,000–400,000 sq ft range, one in the 400,000–500,000 sq ft range and two units over 500,000 sq ft.
This shift in the supply of units over 500,000 sq ft follows the continued trend we are seeing in take-up, with occupiers continuing to take space in larger units, with the South West market remaining well positioned to meet this demand.
Take-up
With continued geopolitical uncertainty, take-up in the South West has been impacted, with take-up totalling 1.26 million sq ft at the end of H1 2026, down 78% from the end of H1 2025. In H1 2026, there were five transactions, down from 12 transactions in H1 2025.
Take-up for the region has consistently seen activity driven by larger units, with over 500,000 sq ft being taken up in Q2 2026; in particular, the Swindon market has seen robust occupier demand, led by the Panattoni Park development.
In terms of specifications, 22% of the space transacted this year was second-hand and 36% of activity involved build-to-suit space. The majority of activity came from newly speculative developed space, accounting for 42% of take-up in H1 2026. By grade, this equates to 42% Grade A speculative space, 45% Grade A space, and 13% Grade C space. There have been no transactions involving Grade B space in H1 2026.
By size band, there have been two transactions within the 100,000–200,000 sq ft size band, two in the 200,000–300,000 sq ft size band, and one transaction over 500,000 sq ft.
Regarding which occupier sectors are taking space, manufacturing occupiers account for 42% of take-up in H1 2026. Followed by online retailers accounting for 26% and wholesalers accounting for 19%.
Development pipeline
Currently, there are no units under construction, following all five speculative units totalling 2.37 million sq ft reaching practical completion in H1 2026. Of these units, one unit at Panattoni Park Swindon encompassing 545,000 sq ft has been leased. Panattoni Park Swindon S920 remains the largest newly speculative unit that is available on the market.