Fast-forward to 2025, and despite macroeconomic headwinds and uncertainty, Savills analysis of warehouse rents in the 100,000 sq ft + bracket confirms that rental prospects remain robust, despite slowing take-up and rising vacancies.

While a gap already existed between prime and secondary rents, it’s widening rapidly. At the end of 2015, average prime and secondary rents were £6.50 per sq ft and £5.60 per sq ft, respectively: a gap of £0.90. By year-end 2024, prime rents had grown by 69% to £11 per sq ft and secondary rents 54% to £8.60 per sq ft, a gap of £2.40. Looking at 2025 to date, average quoting rents have already increased, reaching £12.55 for prime and £10.35 for secondary, growth of 5% and 12%.

The difference is even greater regionally. For instance, in 2015, the West Midlands had a gap of £0.20 per sq ft. By 2024, however, it was £3.40 per sq ft, a 1575% increase. Similarly, across Yorkshire & the Humber, the 2015 gap was £0.60 per sq ft: this grew 278% to £2.10 per sq ft in 2024. The North West has also performed strongly, with the gap expanding to £1.33 by 2024, up 100% from £0.67 in 2015. This has been driven by prime locations like Omega and Trafford Park, helping push Warrington and Manchester quoting rents on, with a compound growth rate of 8.4% over the last five years. 

What is driving the gap?

Often, during periods of uncertainty, occupiers take stock of their portfolio, in particular third-party logistics providers (3PLs), become more ESG-focused. New Grade A space can provide greater efficiency and better amenities than secondary assets, thus dictating a higher rental premium.

Then there’s also the correlation with talent attraction and retention, as well as the link between supply, demand and location, which often significantly affect rents.

Where are we seeing this growth?

Rental growth typically follows periods of high / above-average demand, combined with falling supply and limited pipelines in advantageous geographic locations. Markets within the Midlands ‘golden triangle’ demonstrate this well, with its four-hour drive time serving 90% of the UK’s population,  explaining the breadth of occupier interest and demand.

Slough is also notable. It’s featured in the top 10 prime rental growth markets due to better access to power and proximity to Heathrow, drawing the attention of both traditional occupiers and data centre operators due to greater grid connection accessibility. This significantly reduces land earmarked for industrial development, creating competitive bidding and pushing up rental and land values.

Luton’s stellar growth, meanwhile, can be primarily explained by no supply of Grade A space between Q1 2020 and Q4 2024. As of Q1 2025, two speculative Grade A units have come to market, but nothing is in the pipeline, meaning robust rents are still expected.

Park Royal and Enfield in London, which serve as gateways to the capital’s suburban populations, have previously helped drive a large chunk of London’s headline growth, although demand and, therefore, growth has slowed in recent years. Locations such as Hemel Hempstead have since benefitted, however with rents now reaching mid-£20 per sq ft we should see occupiers look to take advantage of the transport cost savings of being more central.

In short, across the 47 regional markets we analyse, regional prime rents have grown by a compound annual rate of 7.1% since 2020, while secondary rents’ performance was more modest at 5.1% and we don’t anticipate bridging the rental gap any time soon.

Further information

Contact Lewis Rapley or Jon Atherton

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