FIGURES|LONDONINDUSTRIAL|Q42025CBRE

Eastregionactivitysparkslargeincreasein

availabilityrate

5.3%

AvailabilityRate

▲190K

SFNewSupply

351K

SFUnderConstruction

Note:Arrowsindicatechangefrompreviousquarter.

ExecutiveSummary

-London’sindustrialmarketexperiencedasignificantshiftinavailabilityinQ4to5.3%,

reachingaseven-yearhigh.Themajordriverintheavailabilityratespikeswerethreekey

propertiesintheEastregioncomingbacktomarket,accountingfor1.0millionsq.ft.ofspacebecomingavailable.

-TheEastRegionsawavailabilityratesincrease470bpsto6.8%,whileoverallavailabilityrateincreased190bpsto5.3%.31FirestoneBoulevard,theformerAccuridebuilding,isnowfullyvacantandbroughover547,000sq.ft.ofnewlyavailablespacetomarket.Additionally,2190Scanlanbrough270,000sq.ft.ofspacetomarket,asthecurrenttenant,GapClothing,no

longerneedsthespace.

-Overallnetaskingrentsremainedstablerecordinga$0.02increaseto$10.38persq.ft.whiletheEastsubmarketexperienceda6.6%increaseto$10.07persq.ft.

$10.38

PSFAvg.AskingLeaseRate

$184.49

PSFAvg.AskingSalePrice

FIGURE1:LondonFundamentals–HistoricalAnalysis

NetAbsorptionandNewSupply(MSF)AvailabilityRate(%)

1.0

0.8

0.6

0.4

0.2

0.0

-0.2

-0.4

-0.6

-0.8

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

20212022202320242025

NetAbsorptionNewSupplyAvailabilityRate

7.5%

6.0%

4.5%

3.0%

1.5%

0.0%

-1.5%

-3.0%

-4.5%

-6.0%

-7.5%

Source:CBREResearch,Q42025.

1CBRERESEARCH?2026CBRELimited

FIGURES|LONDONINDUSTRIAL|Q42025

2CBRERESEARCH?2026CBRELimited

Availabilityandvacancyexperiencesignificantincreases

Overallavailabilityjumped190bpsto5.3%inQ4,whilethevacancyratealsoincreased190bpsto3.8%.Atfirstglance,thesenumbersseemconcerningtotheLondonIndustrialmarket,but

restassured,theseincreasesareforecastedtobeshortlived.ThemaindriverofthismovementwasAccuride’sformerbuildingat31FirestoneBoulevard,whichbroughtover547,000sq.ft.

backtomarketandwasthemaincausebehindEastRegionavailabilityspiking470bpsto6.8%.2190ScanlanStreet,theGapClothingbuilding,alsobroughtover270,000sq.ft.ofspaceto

marketwhichfurtherexaggeratedtheEastRegionandoverallnumbersthisquarter.31

FirestoneBoulevardand2190ScanlanStreetarebothqualityspaceswithattractiveclear

height,power,andshippingcapacity.Additionally,PowerCo.’sStThomasBatteryPlant

continuedwithconstructioninQ4andisattractingaccessoryindustrialtenantstotheLondonmarket.

Southregionrecordsthree-yearhighinnetabsorption

ActivityintheEastRegionglossedoverothernotablemovementsthatwereseeninQ4,the

mainonebeingLondon’ssecondlargestsubmarket,theSouthRegion,recording205,000sq.ft.ofpositivenetabsorption.ThisisthehighestabsorptionwehaveseenintheSouthRegion

$12.00

$11.00

$10.00

$9.00

sinceQ32022,whichcausedtheavailabilityrateintheSouthregiontodrop100bpsto3.9%.

TheSouthRegionsubleasespacerecordedover45,000sq.ft.ofabsorptionandreachedatwo-yearlowinpercentageofspaceavailableforsubletat2.0%

Netaskingrentsremainstableamidstchangingmarketconditions

Overallnetaskingrentsrose$0.02persq.ft.quarter-over-quarterto$10.38persq.ft.,whiletheEastregionsawa6.6%increaseto$10.07persq.ft.Withnewconstructionbeingstagnantforoverayearnow,thesmallchangesinnetaskingrentsareexpected.Asmentionedbefore,

foreigntenantstotheLondonindustrialmarketarebeginningtoseeLondonasanattractivemarkettoenterwiththelargeinfrastructureplanned30minutesawayinSt.Thomas.LatestplansfortheGigafactorywillbringsomewhereintheballparkof8.0millionsq.ft.tothe

SouthwesternOntarioIndustrialmarket,whileVianode(Norwegiansyntheticgraphite

manufacturer)hasannounceda$3,200,000,000investmentintheSt.Thomasregionsaswell.ThesetwoprojectsareexpectedtoplayapositiveeffectonLondonindustrialmarketactivity.

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

6.8%

3.9%

FIGURE2:HistoricalIndustrialAvailabilityRateBySubmarket(%)

0.6%

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q420212022202320242025

SouthEastNorthwest

Source:CBREResearch,Q42025.

FIGURE3:HistoricalRentalRatesbySubmarket(PSF)

$11.01

$10.50

$10.07

$8.00

$7.00

$6.00

$4.00

$5.00

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

Q1Q2Q3Q4

2021

2022

2023

2024

2025

SouthEastNorthwest

Source:CBREResearch,Q42025.

FIGURES|LONDONINDUSTRIAL|Q42025

FIGURE4:Q42025IndustrialMarketStatistics

Net

Asking

Rent(PSF)

Avg.

Asking

SalePrice

(PSF)

AvailabilityVacancy

RateRate

(%)(%)

Under

Construction

(SF)

Net

Absorption

(SF)

YTDNet

Absorption

(SF)

Inventory

(SF)

Submarket

South19,317,6283.9%2.2%205,057-200,862240,000$11.01$199.83

East

21,915,841

6.8%

5.5%-856,494-702,021

111,000

$10.07

$178.70

Northwest1,394,6470.6%0.6%22,39026,3900$10.50$177.27

LondonTotal42,628,116

5.3%

3.8%-629,047-876,493351,000$10.38$184.49

Source:CBREResearch,Q42025.

Definitions

Vacantsq.ft.:Spacethatcanbeoccupiedwithin30days.

VacancyRate:Totalvacantsq.ft.dividedbythetotalbuildingarea.

Availablesq.ft.:Existingspaceinabuilding,readyforoccupancywithinthreemonths;canbeoccupiedorvacant.

AvailabilityRate:Totalavailablesq.ft.dividedbythetotalbuildingarea.

AverageNetAskingLeaseRate:Acalculatedaverageofthenetleaserateweightedbyitscorrespondingavailablesquarefootage;buildingmustbeexisting,notunderconstructionorplanned.

GrossLeaseRate:Averageaskingleaserateinadditiontorealpropertytaxes,buildinginsurance,andmaintenance.

NetAbsorption:Thechangeinoccupiedsq.ft.fromoneperiodtothenext.

Occupiedsq.ft.:Inventorysubtractedbytotalavailablesq.ft.

SurveyCriteria

Includesallexistingindustrialavailabilities5,000sq.ft.andgreaterinsizeinLondon.

Underconstructionisdefinedbybuildingswhichhavebegunfoundationworkorotherwisehasfoundationsinplace.

MarketAreaOverview

Contacts

WilliamBibbings

ResearchAnalyst

/p>

William.bibbings@

CBREOffice

London

380WellingtonStreet,Suite30London,ONN6A5B5

we

all

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