The North West North West Industrial Market (Occupational)
Occupiers continue to favour prime, best-in-class stock, with businesses increasingly prioritising high-spec, energy-efficient space that supports both operational performance and long-term sustainability goals.
Geopolitical developments in the Middle East could yet become a more significant influence on occupier sentiment as the months progress, depending on how events unfold. The conflict in the Middle East has evolved into a more prolonged and disruptive shock than initially antic- ipated, and the UK economy and property market remain under strain.
Annual UK GDP growth rates for 2026 have been revised down and CPI inflation is now projected to average around 3.6% in 2026, well above target. Higher-for-longer interest rates are now the base case. Volatile UK 10-year gilt yields have reflected higher inflation expectations. In the logistics market, prolonged disruption to global supply chains may accel- erate conversations around onshoring, but for now, the market remains in a holding pattern.
North West take-up (100,000+ sq ft) Source: Colliers John Sullivan
The North West big-box logistics market is performing well. Take-up of units over 100,000 sq ft reached 3.5 million sq ft in 2025, a 10% increase on 2024 and marking the region’s strongest performance of the past three years. Momentum has softened at the start of 2026, with just two deals totalling 460,500 sq ft completing in Q1. While occupiers remain broadly optimistic, many are adopting a measured approach to deci- sion-making amid heightened economic and geopolitical uncertainty.
Colliers was involved in both big-box transactions in Q1; we advised Asda on the sale of its former regional distribution centre in Wigan. The 322,198 sq ft facility was acquired by Prime Box and
JD.com, in a deal that reflects the growing appetite for repositioning older logistics assets. Rather than ground-up development, there is an increasing focus on unlocking value from existing stock and upgrading it to meet modern operational and sustainability requirements.
In addition, the speculatively built Haydock 140 in St Helens was let to data centre power solutions provider AVK-SEG on a 15-year lease at £12.50 psf. Construction of the 138,000 sq ft unit completed last summer.
Supply levels for 100,000 sq ft+ units in the North West reached 7.6 million sq ft in Q1 2026, an increase of 3.3% in the quarter and one-third year-on-year. Growth in supply has been a nationwide trend over the past two years, due to a combination of development completions, a return of second-hand space, and more subdued leasing activity.
While the North West is no exception, rising supply in the region last year was driven by the delivery of circa 2.6 million sq ft of speculative development over the course of 2025.
The vacancy rate stands at 8.5% at the end of Q1, c. 200bps higher than the level seen a year ago and on par with the national average.
Despite increasing supply and slowing occupational take up, rental growth has remained sustained in the UK with the North West region outperforming most other regions at 5.8% annual growth to the end of 2025 (MSCI), trumped only by the South West, at 6.0% which had an exceptional year last year.
We are forecasting average annualised rental growth in the North West of 4.3% for the five-year period to 2030, the second strongest region for rental growth after the Eastern region.
Three New Lettings Signed at Manchester’s Exchange Quay
Exchange Quay in Manchester has signed a trio of lettings as demand grows for amenity-rich office campuses. Ylem Energy, Renault Retail Group UK Ltd and global fashion supply chain business Li & Fung have collectively taken more than 7,400 sq ft across the scheme. The deals were brokered by joint agents Colliers and Canning O’Neill on behalf of investment manager, Till AM.
The three new occupiers join the growing tenant line up at Exchange Quay, the flagship 435,000 sq ft office campus on Manchester’s Salford Quays waterfront, underlining continued demand for high-quality work- space in well-connected locations.
Leading supply chain solutions partner to high-volume fashion brands, Li & Fung has agreed a 10-year lease for a bespoke 3,635 sq ft fully fitted and furnished suite on part of the fifth floor of Building 1. The workspace was designed by Jaspers Sanders and delivered by Aztec. Li & Fung has relocated from Centenary House, Trafford Park, having initially consid- ered Manchester city centre, before opting for Exchange Quay’s campus atmosphere, tram connectivity and extensive on-site amenities.
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Automotive brand Renault has signed for 940 sq ft on the part ground floor of Building 8 on a five-year lease, further diversifying the cam- pus’ occupier mix. The company has relocated from the city centre to Exchange Quay.
Ylem Energy has taken a self-contained 2,840 sq ft building at 10 Exchange Quay on a five-year lease. The business has relocated from Edison House in Salford,
Les Lang, Director, asset manager at Till AM said: “Securing three busi- nesses from very different sectors demonstrates the broad appeal of Exchange Quay. Occupiers are prioritising quality environments that support staff wellbeing, offer flexibility and provide more than just desk space. Occupiers are increasingly drawn to the campus’ external space and facilities.”
Exchange Quay provides a wide range of on-site amenities and flexible workspace options across its campus, which continues to attract a diverse mix of regional, national and international occupiers.
COMMERCIAL PROPERTY MONTHLY 2026
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