Savills says Yorkshire retail warehouse market shows resilience and opportunity as 2025 lettings activity builds momentum

The Yorkshire and the Humber out-of-town retail warehouse market is showing strong signs of resilience and opportunity in 2025, according to new research from international real estate advisor Savills. Following a robust performance in 2024 – accounting for 9.6% of all new UK lettings – the region is on track to deliver another solid year, supported by active occupier demand and a growing number of undersupplied markets.

So far in 2025, Yorkshire has recorded 36 new lettings, representing 6.8% of the UK total (533). This puts the region nearly halfway toward its 2024 total of 76 lettings, which was above the three-year regional average of 72 and just below the UK regional average of 78.

The most acquisitive brands in the region this year include The Range and PureGym (each with four units), followed by IKEA and Next (two units each). This mirrors national trends, with The Range leading the UK with 42 new lettings year to date – largely driven by its acquisition of former Homebase sites – and PureGym ranking third nationally with 21 new openings.

Ian Hare, Director in Out of Town Retail at Savills in Leeds, comments: “Yorkshire’s retail warehouse market continues to attract strong interest from value-focused and essential retailers. While vacancy rates are slightly above the national average at 5.2%, this still reflects a relatively tight market and signals room for further growth. With several key urban centres still considered undersupplied, we’re seeing a healthy level of competition for available space and a clear appetite for expansion.”

Savills reports that the UK average retail warehouse supply is currently 5.95 sq ft per head of population. Markets below this threshold, but with significant catchment populations, are considered undersupplied and capable of supporting additional provision.  In 2024, net effective rental growth across the UK retail warehouse market in undersupplied areas reached 14.8%, with average rents rising to £22.53 per sq ft.

The supply and demand dynamics remain strong in such markets, highlighting the opportunities that exist in Yorkshire and Humber in key towns and cities such as Leeds, Harrogate and Halifax, which fall into this category.

Sam Arrowsmith, Director of Research at Savills, adds: “The Yorkshire market is a prime example of how constrained supply and sustained demand are driving rental growth in out-of-town retail. With vacancy rates still low and several major towns falling below the national supply benchmark, we expect continued upward pressure on rents. Strategic investment in these undersupplied areas will be key to unlocking further growth.”