Industrial

Warehousing and industrial Q1 report: A strong start to 2025

Our Director Charlotte Steggles look back at another successful period for the industrial property sector.

The industrial market has remained buoyant in Q1 2025, with sustained demand for high-quality warehouses and distribution space. Limited supply continues to drive competition, particularly for well-located mid-sized units. Occupiers are prioritising efficiency, ESG credentials and connectivity, making prime industrial stock highly sought after.

Key drivers of industrial market activity

The ongoing strength of e-commerce, logistics and manufacturing has been a key driver of industrial deals. Businesses are securing space to enhance supply chain resilience. Meanwhile, occupiers are no longer viewing industrial units as just warehouses – they are seeking high-quality spaces that include premium office facilities for their staff.

A lack of new speculative development has also contributed to the rapid movement of high-quality second-hand stock, further fueling demand in the market.

This has been evidenced in our sale of a Tool Station investment opportunity in Loughborough, along with the letting of Unit 4 Waldron Court in the town.

Looking ahead: Q2 trends and market dynamics

As we enter Q2 2025, we anticipate further rental growth due to the ongoing supply-demand imbalance, particularly for prime industrial stock. Sustainability will continue to be a major factor, with occupiers prioritising energy-efficient buildings that align with their ESG commitments. The demand for smaller last-mile logistics units is expected to remain strong as businesses optimise their distribution networks.

Growth opportunities and market outlook for 2025

The rest of 2025 presents significant opportunities in strategic industrial development and the repurposing of existing stock to meet evolving occupier needs. NG Chartered Surveyors is actively marketing a range of industrial properties, providing businesses with tailored solutions to support their growth.

For more information on available properties and market insights, get in touch with NG Chartered Surveyors today.