Sector Spotlight - The Logistics Market in the East of England Continues to Grow

The UK logistics industry is a massive economic force, generating around £170-£185 billion annually, supporting roughly 2.7 million jobs (over 8% of the workforce) through more than 230,000 businesses. It acts as a vital enabler for the entire UK economy, with ongoing shifts towards tech adoption and demand from growing e-commerce driving investment in modern warehousing and digital processes. 

Logistics in the East of England is a significant part of the national industry accounting for around 10% of the UK's total logistics jobs. Nationally, logistics demand is concentrating along key corridors. The East of England benefits from its strategic location and proximity to: London and the South East consumer market, Major ports and international gateways, Growing life sciences and advanced manufacturing clusters.

With significant activity around hubs like Peterborough and Freeport East the region is a key location for new warehouse development and contributes substantially to the regional Gross Value Added (GVA). This gives the region a competitive edge, but only if infrastructure and planning systems keep pace.

A recent research briefing by Savills identifies that the logistics property market in the East is continuing to show strong demand, which is constrained by current supply, reflecting broader national trends driven by the growth of e-commerce and changes in supply chain strategies. Recent data indicate that the region’s available logistics stock has fallen significantly, with vacancy rates declining to historically low levels as occupiers take up space rapidly. Vacancy has been reported around 5.7%, one of the lowest in recent cycles, as available supply contracts to approximately 1.8 million sq ft and falls sharply from earlier levels.

This heightened demand is being led by retailers and distribution occupiers, who accounted for the majority of take-up in the latest reporting period. In 2025 most of the space transacted was absorbed by retail logistics requirements, underscoring the ongoing importance of online retail growth in shaping regional property activity.

Market dynamics in the East of England are consistent with broader UK logistics trends, where strong occupational demand has outpaced both new supply and remaining stock, placing upward pressure on rents and intensifying competition for strategic sites close to key transport corridors. Comparisons with other regions show similar patterns of low vacancies and strong take-up, reflecting the structural importance of logistics property in supporting national supply chains.

Overall, the East of England logistics market is characterised by robust occupier demand, limited supply, and ongoing pressure for development of new space, driven by the structural shift towards e-commerce, inventory rebalancing post-pandemic, and continued strategic investments by distribution operators.

Some take-aways for local authorities

1. Planning: logistics demand is structural, not cyclical

The Savills analysis shows that demand for logistics space in the East of England remains strong while available supply is increasingly constrained. Vacancy rates are low and falling, indicating that take-up is being driven by long-term structural shifts—particularly e-commerce growth, supply-chain resilience strategies and near-shoring—rather than short-term market cycles.

Implications for local authorities:

• Local plans need to explicitly safeguard and allocate sufficient employment land for logistics and industrial uses, particularly near strategic transport corridors.

• Planning frameworks that treat logistics as a residual or low-value land use risk constraining economic growth and displacing activity to other regions.

• Authorities should anticipate continued pressure for large, well-located logistics sites, rather than assuming demand will moderate.

2. Infrastructure: connectivity is the binding constraint

The East of England’s attractiveness as a logistics location is closely tied to its connectivity—to London, ports, airports and the national motorway network. However, constrained road capacity, local congestion and delays to strategic infrastructure investment increasingly limit the region’s ability to accommodate growth.

Implications for local authorities:

• Investment in road, junction and freight infrastructure is critical to unlocking logistics development and managing its impacts.

• Planning decisions should be aligned with sub-regional infrastructure strategies, recognising that logistics markets operate across administrative boundaries.

• Authorities may need to strengthen requirements for developer contributions to mitigate transport, environmental and community impacts.

3. Employment: logistics is a major labour market driver

Logistics occupiers are among the largest employers in many local economies, offering a wide range of jobs—from entry-level roles to skilled technical and managerial positions. Savills’ analysis indicates that strong occupier demand is translating into sustained employment growth in the region.

Implications for local authorities:

• Skills and employment strategies should align with logistics growth, including provision for warehouse operations, automation, transport management and digital logistics.

• There is scope to link logistics development more explicitly to local employment and training pipelines, including apprenticeships and progression routes.

• Authorities should resist outdated assumptions that logistics offers limited economic value; instead, it should be integrated into inclusive growth and skills planning.

Overall message

The East of England logistics market is outperforming many parts of the UK in demand terms, but its future success depends heavily on local authority decisions. Planning policy, infrastructure investment and skills alignment will determine whether the region captures the long-term economic benefits of logistics growth—or whether that growth is diverted elsewhere.