Demand from third-party logistics (3PL) providers continued to underpin the UK industrial market in the first half of 2025, accounting for 59% of all big-box take-up and 6m sq ft of grade-A space, Avison Young has reported.

Take-up by 3PL occupiers was just 2% below the five-year average during the first half of the year, despite wider economic uncertainty, the firm’s research shows.

The Midlands remains the most active region, accounting for 61% of 3PL leasing activity in H1 2025, reaffirming its position as the UK’s logistics heartland. Since 2021, 74% of all 3PL space has been taken in the Midlands, underlining its long-term appeal for large-scale occupiers.

3PLs have accounted for 43% of all UK big-box take-up over the past five years, totalling 31m sq ft. The top ten 3PL providers alone account for 12.2 million sq ft, or 39% of that total, reflecting the scale and continued importance of the sector’s largest operators.

David Willmer, managing director, industrial at Avison Young, said: “While macroeconomic headwinds persist, the fundamentals of the logistics market remain strong. We’re seeing sustained demand from 3PLs for modern, well-located space, particularly in the Midlands, which continues to lead the way.

“Headline rents are holding firm, with prime rents rising by an average of 4% in the North West, Scotland and the South West, reflecting continued confidence in key regional markets. The sector continues to present opportunities for both landlords and occupiers.”

Last month, 3PL firm Menzies Distribution Solutions signed a lease with Logicor for 143,155 sq ft at Daventry International Rail Freight Terminal (DIRFT) in Northamptonshire.