Welcome to Future Gazing 2026
This year's edition explores the importance of cubic capacity, increasing height trends and how they influence rents, capital values, and vacancy rates.
22 January 2026
Rising land values, automation technologies and the growth of ecommerce are reshaping how space is designed, utilised, and valued.
Cubic capacity is becoming increasingly important from an operational perspective. Supply chain specialists and automation technology firms are focused on maximising how operators make use of this space.
However, it is not well understood as a property metric. This report explores the evolution of clear heights in UK warehousing, the drivers behind vertical expansion, and the implications for occupiers, developers, and investors.
The traditional and widely accepted way to measure a real estate asset’s size, regardless of property type, is in square feet or metres. However, trends in the industrial sector, particularly the growth of ecommerce and advancements in automation technology, have increased the importance of a building’s cubic volume. Understanding this metric and how best to utilise it has become a key factor for operators seeking to improve supply chain efficiency.
Given its value to occupiers, investors need to better understand volume, why it’s becoming more important for occupiers, how it could impact values, both now and into the future, and most importantly, how could it help inform your industrial property investment strategy.
Key findings
Average heights for new builds have increased from 8.5 m (28 ft) in 2015 to 11.5 m (38 ft) in 2025, with institutional standards for large warehouses now exceeding 12 m (39 ft).
Land scarcity, rising labour costs, and the adoption of automation are pushing operators to build upwards. High-bay facilities and installations are becoming mainstream for largescale fulfilment.
Planning restrictions, engineering complexity, and operational limitations temper the pace of height increases. Beyond certain thresholds, diminishing returns and escalating costs make further vertical expansion uneconomic.
Yorkshire, London and the South West lead in height growth. The East Midlands remains dominant for mega-sites, but regional fulfilment models are gaining traction driving up heights in other markets. In London, planning pressures and high land/rents values will continue to drive intensification strategies but shifting planning policies will shape future building formats.
Taller, well-specified buildings offer strategic advantages beyond immediate rental uplift, including future-proofing, automation readiness, and reduced obsolescence risk. While height explains around 10% of rental variation, its operational value can be far greater.
Aging cold-storage infrastructure, stricter environmental regulations, and rising consumer demand for fresh and frozen foods – alongside growth in temperature controlled pharmaceuticals and vaccines – are driving the need for more high-bay, automated cold storage facilities. This trend is creating a niche investment segment characterised by strong demand and limited supply.
Exploring the importance of cubic capacity, increasing height trends and how they influence rents, capital values, and vacancy rates
