2026 Revaluations - Industrial
2026 Revaluations - Industrial
2026 Business Rates Revaluation: Industrial sector outlook and what you should do now
With industrial rents having surged across key logistics hubs, rateable values (RVs) are expected to rise by 28–30% on average. The introduction of a new three-band multiplier system will impact occupiers differently based on property size, location, and value.
Hover over the map to find out how the 2026 business rates revaluation will impact the industrial markets and the logistics sector in Manchester, Birmingham, London and Leeds
Key Takeaways
- General RV uplift of 20–25% forecast across most of the city
- Smaller and mid-sized units may see increases around 18–23%
- Premium logistics warehouses may face RV increases of up to 30–35%
- Demand is strong, but market volatility is lower than in larger cities
Tenant tip:
Start reviewing your portfolio now—even moderate rate hikes can significantly impact smaller operators. Make sure you understand multiplier thresholds and appeal rights.
Landlord tip:
Consider supporting tenant reviews ahead of the revaluation. For multi-let estates, clear communication and flexible terms can help stabilise income as costs rise.
- RV increases projected at 20–35%, depending on unit size and location
- Big-box and prime logistics facilities could see hikes of 30–40%
- Mid-sized warehouses are likely to see 20–25% increases
- Strong demand and new developments are fuelling the upward trend
Tenant Tip
Check your lease to confirm who is responsible for business rates and consider whether lease restructuring or timing expansions before the revaluation could reduce exposure.
Landlord Tip
Support tenants in understanding how revaluation impacts them. Consider flexibility in lease terms to preserve occupancy, especially for expanding or cost-sensitive occupiers.
- Average RV increases expected at 25–30%
- New or upgraded units could face above-average hikes
- Older units will still see growth, though more moderately
- High demand across logistics, manufacturing, and e-commerce sectors continues to limit supply
Tenant tip:
Begin budgeting for rate increases now, especially if you occupy newer or recently refurbished space. Also, explore whether you qualify for small business rate relief.
Landlord tip:
If you’re leasing modern or high-value stock, be prepared to assist tenants through the transition. Early communication and offering fit-for-purpose leases may improve retention.
- RV hikes of 35–50% are expected across urban logistics and industrial units.
- Prime sites may experience increases exceeding 50%.
- Lease renewals are already reflecting sharp rent adjustments.
- Properties with RVs above £500,000 will fall into the new premium multiplier band, increasing cost pressure.
Tenant tip:
Review your space needs carefully – subdividing or relocating could help reduce exposure to higher rate bands. Also, assess any break clauses or revaluation protections in your lease.
Landlord tip:
In high-value locations, transparency around RV changes will be important. Helping tenants explore reliefs or phased cost plans can reduce churn in high-demand but high-cost areas.
What To Do Now: Preparing for 2026 across all regions
The 2026 revaluation will affect industrial businesses across the UK.
Here are practical steps to take now:
- Audit your current RVs: Understand where each property falls under the new valuation thresholds.
- Budget early: Anticipate increases of 20–50%, based on region, size, and specification.
- Review lease agreements: Confirm business rates responsibility and whether any clauses offer protection.
- Engage advisors: Speak to rating specialists about possible appeals, transitional relief, or mitigation strategies.
- Open conversations early: Landlords and tenants should start discussing potential cost impacts and solutions.
Whether you’re preparing for the 2026 business rates revaluation, reviewing your office valuation, or planning leasing strategies, Andrea Barnes and the Rerate team provide clear, practical advice to help you stay ahead.
Need expert support with UK office market business rates? Contact Andrea Barnes directly for tailored guidance on navigating the upcoming changes.
Get in contact for tailored support on navigating the 2026 revaluation
