An industry report by leading I&L property company Potter Space, in partnership with Savills, has revealed the scale of a decade of undersupply of sub-100k sq ft I&L space, also referred to as small to mid-box.

Small to mid-box accounts for 95% of I&L units. However, occupiers are still struggling to find space as the undersupply is failing to meet resilient demand.

At a national level, from 2014 to 2024, demand has been suppressed by 35%. This means that had it been available, businesses would have taken 35% more space to meet their needs, equating to 60 million sq ft, over the last decade.

It is estimated that meeting this demand could have facilitated 48,000 jobs and £3.3bn of Gross Value Added (GVA) to the economy.

The BIG Things in SMALL Boxes report is authored by Potter Space in partnership with Savills. It identifies essential steps to support the small to mid-box sector and calls on the Government to recognise sub-100k sq ft I&L properties as essential economic infrastructure in its growth strategies and proposed planning reforms.

Jason Rockett, MD of Potter Space, said:

“It is encouraging to see the Government acknowledge I&L as an integral part of the economy through the Modern Industrial Strategy and the National Planning Policy Framework (NPPF)."

“However, as our latest BIG Things in SMALL Boxes research clearly demonstrates, the Government is missing a trick if it does not recognise the potential of the sub-100k sq ft I&L sector."

“For years we have championed sub-100k sq ft I&L and celebrated its economic contributions and role as an engine for growth, yet it continues to face significant barriers. Our latest report shows that this is not only leaving occupiers struggling for space but also hindering the UK’s prosperity.”

The report identifies the challenges restricting sector growth, including unclear Minimum Energy Efficiency Standards timelines, a strained planning system, poor understanding of sub-100k sq ft I&L among planning professionals and policy makers, and spiralling business costs.

Jason continues: “More than ever, we need to recognise the role of sub-100k sq ft I&L as a facilitator of growth."

“Getting small to mid-box in the NPPF, Planning and Infrastructure Bill and the upcoming Freight Plan is a starting point. Doing this will facilitate a joined-up local and national planning system which prioritises policies that redress supply shortages and help unlock the sector’s full potential.”

Regional analysis shows that suppressed demand is not limited to a particular part of the country. In the South East, annual suppressed demand is at 34%, which equates to an additional 689,000 sq ft of missed occupation each year. The North West could have leased an additional 838,000 sq ft annually if it had been able to meet occupier demand.

Resulting low availability has meant that on average, rents for sub-100k sq ft I&L units have increased by 79% on average since 2014, adding significant cost pressures to occupiers.

Mark Powney, Savills director, Planning Economics:

“Recognising suppressed demand strengthens the case for treating I&L as critical national infrastructure. It reinforces the need to support the sub-100k sq ft market in requiring local authorities to plan effectively for business needs in their area to support their local economic growth."

"This includes recognising the particular locational needs of the sub-market and realising its importance to supply-chains facilitating the Government’s Industrial Strategy for a strong and growing British economy.”

Clare Bottle, CEO of the UK Warehousing Association, added:

“Warehousing is not just space, but a key factor in business decision-making. Within this, the sub-100k sq ft I&L space has a key role, providing essential employment land for businesses of all sizes and across all sectors, and it is vital that the market has champions."

“That is why we welcome the latest BIG Things in SMALL Boxes report from Potter Space and Savills, which clearly sets out the challenges and helps the sector, and policy decision-makers, navigate a path forward.”

For more information and to download the full BIG Things in SMALL Boxes report, visit here. 

For further information please contact potterspace@prohibitionpr.co.uk.

About BIG Things in SMALL Boxes 2026:

In its fourth iteration of BIG Things in SMALL Boxes, Potter Space takes an in-depth look into the economic role of the mid-box I&L sector alongside the complex supply and demand dynamics affecting the market. Featuring data, analysis, opinion and occupier perspectives on the challenges and opportunities facing this underappreciated market, the report is available to download free here.