GXO Logistics leases a centre in Panattoni Park Avonmouth
Demand for logistics real estate continues to grow steadily. This trend began during the pandemic. More and more companies are investing in these types of properties to strengthen their positions and expand their geographical presence. Among them is GXO Logistics, which has become the largest tenant in the UK.
The American company is leasing a distribution hub at Panattoni Park Avonmouth in Avonmouth. The 885,000-square-foot complex has been fully adapted to GXO’s needs. It was the largest logistics property lease transaction in the UK in 2025.
Property characteristics
The distribution center leased by GXO Logistics is a Class A facility. Panattoni developed the property for subsequent sale and has now transferred ownership to the American logistics operator. The complex is of great importance to GXO. It is a key part of the company’s UK network. Facility characteristics:
- it is located near the M4 and M5 motorways and not far from the Port of Bristol;
- it is the first property in the Panattoni Park Avonmouth project;
- a logistics campus and distribution center will also be built within the park;
- the property has BREEAM and EPC A ratings, confirming its quality;
- the building complies with energy efficiency and safety standards, including Net Zero Carbon.
This deal highlights the high demand for quality logistics real estate. Tenants are increasingly interested in properties that meet sustainability requirements. Additionally, leasing large spaces confirms the British market’s attractiveness to foreign companies.
Gavin Williams of GXO notes that the Panattoni Park hub is the company’s largest center in the country. Thanks to it, the southwest of England and South Wales will receive new jobs. Colliers, Savills, and others participated in the deal between Panattoni and GXO. JLL represented the interests of the American logistics operator.
Other projects
In addition to its operations in the UK, GXO is developing its business in other European markets. In May 2025, GXO signed an agreement with Toolstation, a building materials and tools retailer. Under the agreement, Toolstation will transfer its logistics operations in the Netherlands to GXO. GXO will provide outsourced warehouse management and fulfillment services. This involves premises in Blaeswick with a total area of 30,000 square metres. The warehouses store over 15,000 products, which they ship throughout the country.
GXO Logistics plans to modernize its warehouse management systems. The company is implementing automated order picking systems to speed up packaging. GXO Logistics will also replace its goods accounting and scanning equipment to improve the accuracy and efficiency of its operations.
