Industrial & Logistics market insights: Key takeaways from ShedMasters 2026
A clear-eyed but optimistic discussion on the Industrial & Logistics market. Our highlights include:
- Occupier demand remains strong – vacancy rates look to be peaking and are expected to soften, with occupational interest holding up well across the sector.
- ESG expectations are rising – but the pricing isn’t – developers are under increasing pressure to deliver high ESG standards (BREEAM Excellent and beyond), while both investors and occupiers remain reluctant to pay a premium for it.
- Build costs are still a major constraint – high construction costs continue to challenge scheme viability, likely accelerating a shift towards retrofit. Proposed steel tariffs could tighten this further if implemented.
- Future‑proofing is non‑negotiable Electrification, automation and tech‑enabled buildings are now central to occupier decision‑making. Resilience of stock is critical.
- A cautious but active investment market Deals are happening, but largely low or zero‑risk plays. The call from the room? Be bold and crack on.
- Macro headwinds – but adaptation is key From geopolitical uncertainty to defence spending and infrastructure priorities, the consensus was clear: acknowledge the challenges, but look ahead and adapt.
- UK‑led investment opportunity Growing focus on domestic investment, particularly into tech, AI and infrastructure, to support long‑term market resilience.
Plenty to think about – and plenty of reasons to stay positive about the sector’s direction.
