A JLL report published earlier this year found that Chinese e-commerce operators accounted for more than a quarter of all Grade A big box logistics take-up in H1 2026. It is one of the most significant new sources of demand the UK industrial and logistics market has seen in years, yet many in the industry are yet to fully understand what is driving it or what it means for the built environment.
Having worked on the refurbishment of a circa 300,000 sq ft facility let to a subsidiary of one of China’s largest retailers, Ashley Williams, Associate Director, draws on his own experience to explore what this trend means for contractors, landlords and developers operating in the urban logistics sector.
A different kind of occupier
Those working in urban logistics will be familiar with the broad range of occupiers that take space in the sector, from parcel carriers to grocery retailers, but Chinese e-commerce operators now represent something different. Rather than building a broad portfolio of units across the country, their strategy involves a small number of large, strategically located hubs, each designed to service a wide area of the country. On the project we were involved in, the operator arrived with a fixed go-live date driven by their own business requirements.
What also distinguishes these occupiers is the level of investment they make in the space itself. The facility featured a high-end canteen, dedicated time-out areas and religious spaces for their workforce – provisions that go well beyond what most UK occupiers would consider standard. Combined with a warehouse layout incorporating automated racking systems and cold store areas, it signals a clear intent to build something high-performing and long-term from the outset.
The stock question
One of the most pressing implications of this trend is what it means for the quality of available stock. These operators need facilities that will run with minimal intervention. Unlike established domestic businesses they do not have existing UK maintenance networks to fall back on, which means Grade A space and strong EPC ratings are not a preference but a requirement.
The gap between what these occupiers need and what much of the existing stock can offer is significant. The result is a growing two-tier market where well-specified and newly refurbished assets attract strong demand, while older stock becomes increasingly difficult to let at competitive rates.
In practice, this is already changing how landlords are approaching their portfolios. At Pexhurst, we are seeing clients move away from delivering high volumes of refurbishments in favour of fewer, more targeted projects with a sharper focus on quality and specification. New-build contractors are entering the refurb market as a result, which brings both new competition and new opportunity for those already operating in this space.
A permanent shift
The industry question is whether this wave of demand reflects a structural change or a short-term response to global trade disruption. The honest answer is that it is both. The intent from these operators was clear before tariffs became the dominant conversation and the fundamentals underpinning the shift are not going away. Available land, a strong consumer base and a genuine gap in the market for a credible rival to the established players are all factors that exist independently of trade policy.
The refurbishment sector has a clear role to play in responding to this moment. Understanding what these occupiers actually need and getting ahead of it is not just good business, it is an opportunity to help shape what the new generation of urban logistics spaces look like.
