Big box logistics buildings are very large distribution warehouses, usually over 100,000 sq ft, built next to the motorway network. They are used by retailers, parcel carriers, manufacturers and third-party logistics firms.
Where they are
The biggest concentration is the "Golden Triangle" of the Midlands, roughly between the M1, M6 and M42, from which most of the UK population can be reached within a few hours. Other hubs include the M62 corridor across the North, the M4 and the Thames Gateway.
Why investors like them
- Typically let to large, well-known occupiers
- Often on long leases with periodic rent reviews
- Modern buildings with high eaves, large yards and good energy ratings
The risks
- Single tenant: if it leaves, the whole income stops.
- Size: finding a new occupier for a very large building can take time.
- Pricing: values are sensitive to interest rates and investment yields.
Compare with last-mile logistics and multi-let estates, and see warehouse investment by location.
This guide is general information, not financial, tax or legal advice. If you are unsure whether an investment is right for you, speak to a regulated financial adviser.