How Ecommerce, Defence, Power and Sustainability Are Reshaping UK Logistics

From the expansion of Chinese ecommerce platforms and the rise of defence-led manufacturing clusters, to shifting development sentiment and a growing focus on sustainability and power infrastructure, occupier demand is becoming more specialised, more data-driven and more strategic.

Chinese Ecommerce Accelerates

Chinese ecommerce operators are expanding into the UK and Europe, and logistics infrastructure is central to their expansion strategies. JD.com’s Joybuy is set to officially launch across Europe in March 2026, following a soft launch in April 2025. The platform will initially offer same-day and next-day delivery across key cities in the UK, Germany, France and the Netherlands, supported by a network of more than 60 warehouses.

Crucially, this rollout is underpinned by JoyExpress, the group’s in-house logistics arm. While initially focused on servicing Joybuy, JoyExpress is expected to evolve into a third-party logistics provider for external business partners. Its integrated model spans warehousing, transportation, large-item logistics, cold chain capabilities and end-to-end supply chain management.

JD.com’s physical footprint in the UK has expanded rapidly as it prepares for Joybuy’s formal market entry. The company has recently secured a 150,000 sq ft temperature-controlled facility in Bedford on a 10-year lease, following refurbishment. This builds on earlier acquisitions at PLP Milton Keynes (530,000 sq ft in 2025) and Dunstable (277,000 sq ft in late 2024). In the Midlands, JD Logistics (JD.com’s property arm) has continued its expansion at Ansty Park, Coventry. After taking Unit 7 (117,076 sq ft) in summer 2025, the company has now secured a second unit (Unit 6), totalling 269,882 sq ft.

Alongside large-scale regional hubs, JD.com has also been assembling a network of urban logistics facilities. Having already taken multiple smaller units across London, the group is also expanding into other major UK cities, recently acquiring a 9,250 sq ft urban warehouse at Kier Property’s Trade City scheme in Manchester.

Swindon’s Defence Drone Cluster

Beyond ecommerce, defence-led manufacturing is emerging as another powerful driver of industrial demand. Swindon has rapidly positioned itself as a national hub for drone development and production, attracting companies such as STARK Defence, TEKEVER, DSEI Flyby and Munin Dynamics.

STARK Defence has already opened a 40,000 sq ft high-tech manufacturing facility at Panattoni Park Swindon, with full operations scheduled for 2026. The plant will produce AI-enabled loitering munitions for NATO and allied forces. Meanwhile, TEKEVER is preparing to open its fourth UK facility in Swindon, with a 200,000 sq ft manufacturing plant due to become operational this summer.

Swindon benefits from deep industrial engineering roots, stretching from railway manufacturing through to automotive production, it also offers relatively affordable employment land, excellent rail connectivity between London and Bristol, and direct access to the M4 corridor.

The former Honda car plant, which closed in 2021, on the same site where Spitfires were once produced, is now set to become a focal point for drone innovation. The Ministry of Defence is reportedly planning a classified indoor testing facility of around 525,000 sq ft, designed to stress-test drone technology. This facility is expected to act as an anchor for a rapidly expanding ecosystem of defence-focused start-ups.

Is Development Turning a Corner?

Development activity remains subdued by historical standards. Planning applications, consents and starts are all well below long-term averages, reflecting softer exit yields along with heightened build and financing costs.

For industrial and logistics units over 50,000 sq ft, only 32 planning applications were submitted in Q3 2025. However, Q4 saw a notable rebound, with applications rising to 63, almost double the previous quarter. So far in Q1 2026, 24 applications have been recorded.

A similar pattern is visible in speculative development under construction. Q3 2025 saw just 53 units (over 50,000 sq ft) under construction across the UK, rising modestly to 56 schemes in Q4.

While overall activity remains subdued, the recent uplift in planning applications indicates that some developers are beginning to position for a more supportive development environment. Conditions are gradually improving as interest rates ease and competition among lenders increases, helping to reduce financing costs. At the same time, continued rental growth is strengthening development viability, particularly for well-located, specification-led schemes where occupier demand remains resilient.

Raising the Sustainability Bar

Sustainability in logistics development is increasingly being assessed through a whole-life carbon lens, combining operational performance with embodied (upfront) emissions associated with materials and construction. In large-format warehouses, where steel, concrete and foundations account for a significant share of the footprint, this has sharpened attention on material selection, structural efficiency and the relative merits of refurbishment versus new build.

There is also growing demand for clearer and more comparable definitions of “net zero”. The pilot UK Net Zero Carbon Buildings Standard (UKNZCBS), launched in September 2024, seeks to provide a consistent methodology across upfront carbon and operational energy/performance, improving transparency and comparability between schemes and helping to reduce the scope for inconsistent claims.  The Standard places emphasis on evidence and measured outcomes, rather than relying solely on modelled assumptions.

Amazon’s 116,250 sq ft delivery station in Stockton-on-Tees offers a current example of how these approaches are being applied. The scheme is registered for the International Living Future Institute’s Zero Carbon Certification (v1.1) and is being delivered in line with the UKNZCBS framework.  It combines lower‑carbon, high‑recycled‑content steel (produced using renewable electricity) with mass timber, and is piloting tools including AI-enabled carbon tracking and material tracking to reduce waste, with a stated target of at least a 20% reduction in construction emissions versus Amazon’s previous standards.

Regulation drives more specialised development

Growth in the pharmaceutical sector, coupled with the sectors tightening regulatory requirements, is driving demand for GDP- and GMP-compliant logistics space. This is accelerating the need for bespoke fit-outs, temperature-controlled environments and validated facilities. Developers such as Panattoni are actively targeting this segment, delivering climate-controlled, secure buildings with cleanrooms and temperature-mapping capabilities across Europe.

Power Becomes a Constraint

Finally, power availability is becoming a critical differentiator. Automation, advanced manufacturing processes and data-intensive operations are driving up occupiers’ power requirements. As a result, institutional standards for power provision at new developments is increasing, while many existing assets will require power upgrades to remain competitive. Landlords faced with upcoming lease expiries, may want to look at investing in power upgrades as a way to protect income and mitigate against void risk.