Derby’s industrial property market has enjoyed a strong first half of 2026, with significant transactions, resilient occupier demand and further investment in new Grade A space.
After a challenging end to 2025, Nick Hosking, Director of Agency and Development at Innes England, looks at what has been driving activity and why Derby is well placed for the remainder of 2026 and beyond.
A Positive Start to 2026
The second half of 2025 proved challenging for the industrial property market, with deals taking longer to complete and many occupiers reluctant to commit ahead of November’s Budget.
Despite this, Derby’s industrial take-up for the year remained well above the 10-year average, although down on the exceptional levels recorded in 2024, when the major Greggs facility at SmartParc SEGRO boosted the figures considerably.
Moving into 2026, wider global economic uncertainty has continued, but the UK logistics market has demonstrated remarkable resilience.
Here in Derby, we’ve seen a really strong start to the year.
Major Deals Demonstrate Occupier Confidence
At the beginning of 2026, local industrial supply was dominated by two significant properties: Oxenwood’s former Ted Baker unit at Derby Commercial Park in Raynesway and Derby 507, Logicor’s major speculative development at Infinity Park.
Derby 507 has since been let to CEVA Logistics. At approximately 508,003 sq ft, the transaction represents the city’s largest industrial letting for a decade and will make a significant contribution to Derby’s overall industrial take-up figures for 2026.
The deal is a major vote of confidence in Derby and demonstrates both the strength of the XL warehouse sector and the level of occupier demand for high-quality, large-scale Grade A space within the local market.
There has also been continued success at Indurent Park Derby, where Pureseoul, the UK’s largest Korean skincare and cosmetics retailer, has opened its national distribution hub.
Pureseoul joins an international roster of occupiers at the development, including Getinge, Rodd & Gunn, Sinoboon, Utopia and Kia, alongside Derby’s own Rolls-Royce.
Supply Remains Tight
While occupier activity is encouraging, strong take-up means the supply of new industrial space across Derby is becoming increasingly limited.
Indurent Park Derby currently has two new Grade A units of approximately 43,000 sq ft and 82,000 sq ft available, but beyond this, the supply of high-quality new accommodation remains relatively thin.
The shortage is particularly evident within the small and mid-box market, creating a need for further development to meet occupier requirements.
New Investment Coming Forward
Some of this demand will be addressed by further development at the well-established Sinfin Commercial Park, strategically located close to Rolls-Royce’s civil aerospace campus.
Hortons is progressing a significant new-build scheme at the park, which will deliver 17 new Grade A industrial units ranging from approximately 5,000 sq ft to 70,000 sq ft.
The investment is particularly significant at a time when the delivery of new industrial stock nationally has slowed.
Hortons has also completed a multi-million-pound refurbishment of a 66,000 sq ft warehouse fronting Sinfin Lane. The property has recently been brought to market and is already generating strong occupier interest.
Looking Ahead
Derby’s industrial property market has performed strongly during the first half of 2026.
The combination of major transactions, continued occupier demand and investment in new Grade A accommodation demonstrates the underlying strength of the market.
While the shortage of available high-quality space remains a challenge, the investment now coming forward will help address some of that demand and provide new opportunities for businesses looking to locate or expand within the city.
With a strong first six months behind us, Derby is well placed as we look towards the remainder of 2026 and beyond.
For advice on industrial property opportunities in Derby and across the East Midlands, contact Nick Hosking, Director of Agency and Development, at n.hosking@innes-england.com.