Retail warehouse investment volumes have climbed to £1.5 billion ($2 billion) in the first half of the year, marking a 32 percent year-on-year increase, according to CBRE.
This follows a strong 2024, in which retail warehouse investment volumes reached £3.35 billion ($4.5 billion), the highest level since 2021. The number of deals completed fell below the five-year average to 100, as larger lot-size transactions returned. The average lot size in first half 2025 was £38 million ($52 million).
Institutional capital has maintained dominance for prime retail parks, with REITs and private equity leading the core-plus space. A wave of new entrants has been active in the market, however, with capital from France and the United States accounting for 58 percent of first-half buy activity.
“The pool of capital looking to enter the retail warehouse market is widening, as investors look to capitalize on robust occupational demand, lower levels of vacancy and subsequent
