This report explores the expansion of the Industrial Outdoor Storagesector across the UK, offering a detailed analysis of key metrics andemerging trends. Momentum on the ground Industrial Outdoor Storage (IOS)is moving from the margins to themainstream and emerging as a vitalcomponent of the UK’s industriallandscape. As occupier requirementsdiversify and business needs change,IOS is proving an adaptable and cost-effective solution for a wide range ofusers. Demand is not only sustainedbut is shifting in profile, with enquiriesspanning a broader mix of uses,specifications, and site sizes thanever before. To better understand thesechanges, Knight Frank has analysedits London & South East IOSenquiry database, which tracksboth the volume of enquiries, andthe scale and specifications ofland requirements over time. Thefindings point to a resilient market,with enquiry volumes showingclear momentum. The number ofenquiries recorded in the first sevenmonths of 2025 are 31% higher thanJan-July 2024, and come close tomatching the total for the whole of2024, with five months still to go. “Industrial Outdoor Storage(IOS) is moving from themargins to the mainstreamand emerging as a vitalcomponent of the UK’sindustrial landscape.” The range of requirements can vary,both in quality and scale, spanningfrom as little as half an acre up to 25acres of space. Over the past 18 months,22% of enquiries were for less than1 acre of IOS space, rising to 42% for<2 acres, while 39% fell between 2 and5 acres, and 19% exceeded 5 acres.With typical lease length – bothrequired and obtained – also varyingfrom 1 to 25 years, this breadthunderlines the sector’s versatility inmeeting occupier needs, from small-scale, short-term storage to substantial,long-term operational footprints. The typical midpoint betweenminimum and maximum siterequirements has grown by 36%over the same period – from 2.3 to3.1 acres – while average maximumrequirements have climbed 39% – 3.3to 4.6 acres – reflecting expandingoperational needs and the arrival oflarger operators to the market. 36%The typical midpoint betweenminimum and maximum siterequirements has grown by 36%in 2025 – from 2.3 to 3.1 acres Five forces reshaping IOS What sub-sectors are shaping demandfor IOS in the UK? We have identifiedfive key trends behind these shifts,driven by structural changes inoccupier requirements and mountingoperational pressures across multiplesub-sectors. The following sectionexplores how these forces are shapingthe market and influencing the futuredemand for IOS. specialised materials (such as steel,timber, aggregates, and claddingsystems), housing heavy machineryand tools, and staging preassemblyworks. These spaces also serve ashubs for organising “just-in-time”deliveries to active developmentsites, especially in urban areas whereon-site storage is limited. interest rates soared, and many newdevelopments stalled. The outlook is improving; withinterest rates now falling, theconstruction sector is set for a periodof renewed, if moderate, growth.Oxford Economics forecasts totalconstruction output to increase by20% over the next 10 years, to £173billion by 2035. This equates to anaverage annual growth rate of 1.9%.Regionally, the strongest growth (inpercentage terms) is expected for theEastern region (+23.5%), followedclosely by London (+23.2%) and theSouth East (+23.0%). The South Eastregion remains the leading region forthe sector, with a total constructionoutput of £22.0 billion in 2024 andprojections to reach £27.5 billionby 2035.Outside of Greater London, the As an industry, constructionis highly cyclical and sensitive toeconomic conditions. Constructiondemand is heavily influenced byinterest rates, inflation, and investorand occupier confidence – all ofwhich have endured a turbulentride over the past five years. In 2020,construction gross value added(GVA) plummeted by -12.9% due toCOVID-19 related shutdowns, onlyto rebound strongly with +11.9%and +7.3% in 2021 and 2022,respectively. Growth slowed againto +2.3% in 2023 and +0.6% in 2024, as CONSTRUCTION INDUSTRY: THEYARD BEHIND THE SKYLINE Businesses in the constructionindustry are among the mosttraditional users of IOS space.Contractors and suppliers typicallyuse IOS sites for storing bulk and South East and East regions, theSouth West and Yorkshire & the Humber have the strongest 10-yeargrowth forecasts in percentage termsof +22.9% and +22.2%, respectively.The North West is expected to see thelargest absolute increase in outputvalue over the next decade, of £3.2billion, to reach £18.0 billion by 2035,followed by the South West (+£2.7billion to £14.6 billion). the Planning and InfrastructureBill. Added to this is the £725 billion10-year National InfrastructureStrategy, which aims to acceleratedevelopment, supported by theNational Wealth Fund, an initiativespecifically designed to attract privatesector investment. CO2emissions. Transport as awhole remains the UK’s singlelargest source of greenhouse gases,ac