Segro, a leading FTSE 100 real estate investment trust specializing in warehouses and data centres, has reported a 43 percent increase in rents for businesses renewing leases at its properties. The company attributed the rise to strong market conditions driven by high demand and limited supply for strategically located logistics hubs and data centres.

The increase comes amid continued growth in online shopping, which has positively impacted warehouse space owners, including Segro. Despite the substantial rent hikes, around 80 percent of eligible customers have renewed their leases so far this year, contributing to an occupancy rate of 94.7 percent.

Last month, Segro’s shareholders approved a £14 billion acquisition offer from Prologis, a US-based competitor, signaling significant consolidation in the logistics and warehousing sector. The deal is expected to combine two of the largest global players in industrial real estate, potentially reshaping the market landscape.

Segro’s leadership highlighted that current market dynamics remain favorable for landlords of well-positioned logistics and data centre assets, reflecting broader trends in e-commerce and digital infrastructure expansion.