For investors and owners of industrial property
Why investors are targeting logistics hubs in the UK property market
Sviatoslav JerdetchiiCEO & Founder of Craftex. Updated , 5 min read
The short answer
Investors target UK logistics property because online shopping keeps over a quarter of retail sales, planning policy now backs freight and logistics, and modern, efficient warehouses are in short supply.
- Online sales were 27.5% of UK retail sales in 2025, against 19.2% in 2019.
- The August 2026 planning framework asks councils to plan for logistics at a variety of scales.
- Energy rules are tightening, so a building's EPC now affects who will rent it.
- Value depends on location, access, power and a specification occupiers want.
Warehouses used to be the plain end of the property market. Today they are one of the asset types investors watch most closely. The reasons are simple: how people shop, where planning policy is heading, and how few modern buildings there are.
This guide explains why logistics property draws investment in the UK. It covers what makes one building more valuable than another, and where a fit-out or refurbishment changes the answer. Own or buying a warehouse? Book a site visit and we will check what it needs.
Why logistics property investment in the UK keeps growing
Three forces drive demand for logistics buildings in the UK.
- Online shopping stays high. Goods bought online have to be stored, picked and delivered.
- Planning policy now backs logistics. National policy asks councils to plan for it.
- Modern, efficient buildings are scarce. Occupiers want space that meets today's energy rules.
Each one is explained below, with the evidence behind it.
Online sales keep warehouses busy
Online shopping jumped during the pandemic and then settled at a higher level. It has not gone back to where it was.
| Year | Online share of retail sales |
|---|---|
| 2019 | 19.2% |
| 2020 | 28.1% |
| 2021 | 30.7% |
| 2024 | 27.1% |
| 2025 | 27.5% |
In August 2026, the figure was 27.3%. Every online order needs space to be stored, packed and sent. So demand for warehouses near people and transport has held up, even after the 2021 peak.
Planning policy now names freight and logistics
The National Planning Policy Framework was rewritten in August 2026. Policy E1 asks plans to provide for "freight and logistics operations at a variety of scales and in suitably accessible locations".
A new policy, E3, deals with freight and logistics directly. It asks that schemes have good access to the transport network. They should limit environmental impacts and provide parking for lorries and other vehicles.
In planning terms, most logistics buildings are storage or distribution, Use Class B8. Light industrial use that suits a residential area sits in Class E(g)(iii). Councils can also protect areas they consider important for storage or distribution from new homes.
Craftex carried out a warehouse fit-out for us, and I couldn’t be happier with the outcome. The space has been completely transformed into a highly organized and efficient environment that makes our daily operations much smoother. The team was professional but also very approachable — I always felt comfortable asking questions or giving feedback. They came up with smart, practical solutions that worked perfectly for our setup, and everything was explained clearly along the way. The best part was how they stuck to the agreed timeline, finishing on schedule without cutting corners. It’s rare to get both quality and reliability, but Craftex delivered both.
Large distribution centres and small last-mile units
"Logistics hub" covers very different buildings. A large distribution centre sits near a motorway and serves a region. A small last-mile unit sits inside a town and serves nearby customers.
The policy wording, "a variety of scales", reflects that. Smaller urban units face different questions: neighbours, delivery hours, and how vans get in and out. Our guide to tech-ready spaces looks at the power and data modern occupiers now expect.
Energy rules now affect who will rent a building
Today, letting a non-domestic building with an EPC below E is unlawful unless an exemption is registered. In June 2026, the government set out a target of EPC B by 2031 for rented buildings over 1,000 square metres. It is a proposal, not yet law.
If the proposal becomes law, an older warehouse over 1,000 square metres with a poor rating may need upgrading before it can be let. Lighting, heating, insulation and on-site solar are the usual places to start. Our guide to MEES and EPC B for commercial landlords explains the rules.
Empty space costs money too. An empty industrial or warehouse building is usually exempt from business rates for six months. After that, full rates are normally payable.
What makes one logistics building worth more than another
Two buildings of the same size can be worth very different amounts. These are the things occupiers check first:
- Access. Road links, turning space and parking for lorries.
- Power. Enough supply for automation, charging and cold storage.
- Height and floor. Clear height and floor strength for racking.
- Loading. Enough doors, at the right level, for the vehicles used.
- Welfare. Toilets, changing rooms and staff areas that meet the rules.
- Energy rating. An EPC that lets the owner rent the building lawfully.
Many of these can be improved inside an existing shell. A survey shows which ones, and at what cost.
What our warehouse projects show
We fit out and refurbish warehouses that stay in use while we work.
At Banbury in Oxfordshire, we created 148 sq m of new space inside a busy warehouse in four weeks. It added changing rooms, lockers and a storage room with pallet racking and safety barriers. Operations did not stop.
In Hackney, we redesigned every engineering system in a 120 m² unit with 6 m ceilings. The unit had no natural drainage outflow, so we installed a pumped system. A dedicated extract vents 12 metres above roof level.
For Drake's, we turned a 500 sq m railway arch into offices, a studio, production space and a dispatch route in eight weeks.
Fit-out and refurbishment protect the yield
A logistics building earns only when it is let and working. The fit-out is what makes it usable for a particular occupier. That means power, lighting, heating, welfare, offices and storage.
Most warehouses also need a small office or a hub for the team that runs them. Good office design and space planning makes that space work. Our commercial fit-out and refurbishment team delivers both under one contract. Our warehouse and logistics hub construction service covers larger builds.
Seven checks before you buy or upgrade a warehouse
One team for survey, design and fit-out
An investor's return depends on how fast a building is ready to let, and how well it works once it is. When one team surveys, designs and builds, the gaps between those steps close.
We take on construction projects from £100,000. If you own or are buying a logistics building, book a site visit and we will tell you what it needs to let.
Before you commit
- Is the building in Use Class B8, and what do its planning conditions allow?
- Do road access and parking suit the vehicles that will use it?
- Is the power supply enough for the occupier's equipment?
- Will the clear height and floor take the racking needed?
- What is the EPC rating, and what would it take to reach B?
- Are welfare facilities and offices fit for the team?
- Can the works be done while the building stays in use?
