Of the 2.05 million sq ft available, 52% is poor-quality Grade C space, restricting occupier options.
2025 has seen a slowdown in take-up, but it is not for a lack of occupier appetite but rather an absence of prime new-build stock as the ‘flight to quality’ trend ramps up. However, with a lack of sites in prime markets, rental growth remains robust.
Phil Dennis, Director, Commercial
East Anglia Logistics HUB, a strategic location offering built-to-suit opportunities from 50,000–1,000,000 sq ft on the A11 corridor.
Supply
Compared to a year earlier, available supply has fallen by 6%, totalling 2.05 million sq ft, with a vacancy rate of 6.42%, down from 7.03% the previous year. Based on the five-year average annual take-up, the market has about 1.01 years of supply remaining.
Across the region, five units are available in the 100,000–200,000 sq ft range, four in the 200,000–300,000 sq ft range, one in the 300,000–400,000 sq ft range, and none over 400,000 sq ft; making larger requirements difficult to satisfy, especially in core market locations.
Proportionally, of the 2.05 million available, most is poor-quality Grade C space (52%). The next most common type is second-hand Grade A space, accounting for 29%, with the remainder comprising new-build Grade A (7%) and Grade B (12%). However, since the majority of the space is low-quality Grade C, this limits occupier options, especially as they prefer top-tier assets. Nonetheless, the region offers opportunities for investors and developers to benefit from the low vacancy rate and supply imbalance, which supports future rental growth across Grade A quoting rents.
Take-up
Persistent macroeconomic challenges, combined with a more limited selection of quality stock, have hampered uptake in 2025, which is 64% lower than in 2024, amounting to 609,800 sq ft. The limited choice of quality stock is reflected in the quality of the leased units. 51% of the space let was second-hand, including one Grade A unit and one Grade C unit, while the remaining 49% was secured as a build-to-suit (BTS) option.
Out of the 609,800 sq ft transacted, two deals fell within the 100,000–200,000 sq ft range, while the remaining transaction, which was the BTS unit, was in the 300,000–400,000 sq ft band. In 2025, 79% of the space transacted was occupied by retailers, including one wholesaler and one high street retailer, with the former being the larger of the two, featuring a 300,000 sq ft BTS unit.
Given the region’s shortage of new build stock, Savills in-house rental growth projections, based on a baseline scenario, indicate that the region will see an average rental increase of 3.8% over the coming years. This is supported by the scarcity of top-tier assets from existing units, a situation likely to continue due to the lack of an active speculative development pipeline.
Development pipeline
Across the East of England, there is a shortage of new speculative Grade A units, with the most recent completion occurring in Q3 2025 at Port One Logistics Park in Ipswich. However, this presents an opportunity for investors and developers to tap into latent demand that remains unmet, as one of the main obstacles is power supply. This is particularly relevant for both developers and occupiers, especially those with electric fleets or operating in power-intensive industries such as defence and manufacturing. If developers can identify sites with reliable power supplies, it could unlock future demand and, in turn, increase take-up volumes.