Total UK shed take-up has exceeded 7m sq ft in Q1 2016, an increase of 16% on the previous quarter, according to Savills.
The figure is 24% above the long-term average of 5.6m sq ft.
Savills said the increase was driven by a number of significant mega-shed deals, including Amazon’s 1m sq ft distribution fulfilment centre in the Midlands.
Four deals totalling more than 500,000 sq ft took place in the first quarter of the year, compared to eight deals of that size taking place in the whole of 2015.
Richard Sullivan, national head of industrial and logistics at Savills, said: “We have had an exceptional start to the year with Q1 take-up surpassing expectations across the UK.
“Online retailers continue to dominate the industrial and distribution sector. However, despite this, demand still remains high from a variety of different occupiers.”
Savills research found that the South West had its best quarter ever, transacting over 2.2m sq ft, which is equal to 2014 and 2015 figures combined.
One of the largest deals for the region in Q1 2016 saw The Range take a 1.2m sq ft facility in Bristol.
Savills also notes that 57% of the space transacted in Q1 was for build-to-suit units, against the long-term average of 29%.
It said this was due to a lack of good-quality stock and the limited supply of modern and fit-for-purpose warehouse space available across the UK.
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