Take-up of large industrial space in Wales has declined, according to new research from property advisory firm Savills. For units exceeding 100,000 sq ft, take-up in the first half of 2026 totalled 231,320 sq ft across two deals, including the letting of a 103,542 sq ft unit at Tafarnaubach Industrial Estate in Tredegar.
This represents a 20.3% decrease compared with the first half of 2025. Notably, 94% of available warehouse space comprises grade C units, indicating significant scope to reposition older assets and deliver new speculative development to meet occupier demand for best-in-class space.
Occupier activity and market composition
Both transactions completed during the first half of the year involved units in the 100,000–200,000 sq ft size bracket, underlining the long-established preference for smaller big box units in Wales. In terms of occupier activity, online retail accounted for 52% of take-up, with manufacturing at 48%.
Total available warehouse space at the end of June reached 2.66 million sq ft, an increase of 7.8% from 2.47 million sq ft at the start of the year. This equates to a vacancy rate of 3.33%, up from 3.09% at the end of 2025. Based on average five-year annual take-up levels, there is currently 1.64 years of available supply in the market.
Supply and future outlook
There are currently six available units in the 100,000 to 200,000 sq ft size range, one between 200,000 to 300,000 sq ft, two between 300,000 to 400,000 sq ft, and one unit of more than 500,000 sq ft. However, with 528,000 sq ft of space across two units, take-up is expected to be stronger in the second half of the year, further tightening supply.
The speculative development pipeline has also seen renewed activity, with N115 Indurent Park Newport now under construction. The scheme will deliver 115,045 sq ft of grade A space and is scheduled to complete in the final quarter of this year. Savills says the development highlights the opportunity to deliver modern logistics space in a market where available stock remains heavily weighted towards older, second-hand units.
Expert commentary on market renewal
Jack Davies, director at Savills, said: “While take-up has softened in the short term, the Welsh logistics market is entering an important phase of renewal. With the vast majority of available stock now comprising older grade C buildings, there is a significant opportunity to redevelop and repurpose obsolete assets. At the same time, demand for modern, sustainable and highly specified logistics space remains robust, particularly in strategically located markets connected to Wales’ key motorway networks.”
Kevin Mofid, head of industrial and logistics research at Savills, added: “The Welsh logistics market remains fundamentally under supplied when it comes to modern, large-scale warehouse accommodation. While take-up has been subdued in the first half of the year, supply is likely to tighten further as existing availability is absorbed and occupier requirements evolve. Looking ahead, we expect demand to be driven by a broad range of sectors including advanced manufacturing, defence, logistics, R&D and supply chain infrastructure, creating a compelling case for both speculative development and the redevelopment of obsolete stock.”
