Following an exceptionally strong end to last year, the first quarter of 2026 provides a clearer picture of underlying market fundamentals, including consistent transaction volumes, sustained SME demand and continued appetite for both property and strategic land opportunities.
Total take‑up across Wales during the first quarter reached 677,154 sq ft, alongside 16.6 acres of land. With a significant volume of additional space currently under offer, these figures reinforce the market’s resilience despite a more selective trading environment.
While overall take‑up was 29.4% lower than the final quarter of 2025 (959,493 sq ft), volumes remain 26.1% higher than the first quarter of 2025, underlining the strength of demand when viewed against longer‑term trends rather than a single, unusually busy quarter.
A total of 69 transactions completed during the quarter, comprising 63 property deals and six land transactions. Activity was firmly led by smaller units, with 57% of all deals below 5,000 sq ft, highlighting the continued importance of SME occupiers and regional businesses in driving market momentum. Tenure patterns remained consistent with recent periods, with 57 leasehold transactions, complemented by nine freehold and three long leasehold deals.
At the larger end of the market, four transactions exceeded 50,000 sq ft, evenly split between freehold and leasehold deals. This included Cooke & Arkwright acting for the vendor on the sale of Unit 1 at Hirwaun Industrial Estate, a 97,300 sq ft industrial facility acquired by the Welsh Government for refurbishment and future high‑quality manufacturing facility and distribution.
Ben Bolton, Director at Cooke & Arkwright, said, “After an exceptionally active end to 2025, a degree of recalibration during the first quarter was always expected. What these figures underline is not a weakening of demand, but the breadth and resilience of occupier activity across Wales. Demand remains particularly strong for sub‑5,000 sq ft units, reflecting the ongoing importance of SMEs, while businesses more generally are taking considered decisions around location, efficiency and long‑term operational certainty. Where assets meet those requirements, we continue to see strong levels of interest.”
Geographically, take‑up remained well distributed across South Wales, with established industrial locations continuing to perform strongly. There is also continued evidence of occupiers looking beyond core locations due to limited availability.
With a healthy pipeline of enquiries, limited supply and a growing focus on efficient, well‑located space, the Welsh industrial market enters the rest of 2026 on a stable footing, with demand for quality accommodation expected to remain buoyant.
