A regional division has appeared in the U.K. logistics and industrial market, as prices have fallen significantly in London and the Southeast regions while remaining stable in the North and Midlands parts of the country.
Based on a three-period trailing average of deals more than £1 million (€1.2 million/$1.37 million), data from CoStar show sellers of industrial buildings in London were accepting an average 11 percent discount to the asking price in the first quarter 2025. Sellers in the Midlands and the North of England, in contrast, were largely holding firm on price expectations. London and Southeast industrial property were consistently selling for well over asking prices before the downturn. In addition, the London and Southeast vacancy rate stood below that in the Midlands when the pandemic struck, but has since more than doubled to 6 percent and risen above it. London and Southeast vacancy is also comfortably above that in the North of England, a reversal of the tr
