With 94% of available stock classed Grade C, Wales offers clear redevelopment potential as occupiers seek modern, higher-quality logistics space.
Overall, current availability highlights many redevelopment opportunities because the supply is heavily focused on second-hand units, and this is why we are seeing a return of new speculative development in the region aimed at capturing the growing demand for top-tier units.
Jack Davies, Director, Industrial
Indurent Park Newport – Savills is instructed on Unit N115, which offers 115,045 sq ft of high-specification logistics and industrial space, designed to support efficient large-scale operations
Supply
The total available warehouse space at the end of June 2026 now reaches 2.66 million sq ft, a 7.8% increase since the start of the year, when available supply was 2.47 million sq ft. This is reflected in a vacancy rate of 3.33%, up 24 basis points from 3.09% at the end of 2025. Based on the average five-year annual take-up, there is currently 1.64 years of supply in the market.
There are six units available in the 100,000–200,000 sq ft range, one in the 200,000–300,000 sq ft range, two in the 300,000–400,000 sq ft range, and one over 500,000 sq ft.
When analysing by grade, 6% of the space is Grade B, and 94% is low-quality Grade C. There remains an occupier preference for best-in-class assets; the current available supply in Wales offers opportunities to redevelop existing low-quality sites to meet this demand, along with prospects for future speculative development.
Currently, there are 528,000 sq ft under offer across two units, which could help drive a strong uptick in H2 2026 take-up while simultaneously tightening the supply.
Take-up
In H1 2026, transactional activity has decreased by 20.3% compared to H1 2025, with take-up totalling 231,320 sq ft across two deals. This decline in take-up indicates normalisation following a much sharper decrease between 2024 and 2025. It emphasises that, given the market's size, transactional activity will fluctuate.
When looking at unit count, both freehold transactions involved units in the 100,000–200,000 sq ft size bracket, indicating a long-established preference for smaller unit sizes in Wales. But in terms of specification, one unit was a Grade A space, whilst the other, slightly smaller unit was a low-quality Grade C unit.
By occupier sector, 48% of take-up was from the manufacturing sector and online retail was responsible for 52% of take-up in H1 2026. This follows a similar historical occupier profile for big-box logistics in the region.
Development pipeline
The speculative development pipeline has advanced significantly, with N115 Indurent Park Newport now under construction, covering 115,045 sq ft and scheduled for completion in Q4 2026. As previously mentioned, the consistently low-grade supply base in the Welsh big-box market presents an opportunity for top-tier speculative development to meet increasing occupier demand.
Land availability within the region remains plentiful, with considerable build-to-suit opportunities at multiple ports across South Wales, and so we believe the market may see an uptick in future speculative development.