Key facts
- Padel operators have leased over one million square feet of industrial space in the UK in the last 18 months.
- This represents a nearly sevenfold increase compared to the previous 18-month period.
- Last year saw 784,000 sq ft acquired by padel operators, up 390% from the prior year.
- Warehouses are well-suited for padel due to large spaces, high ceilings, and ample parking.
- FTSE 100 property firm Segro has partnered with the Lawn Tennis Association to support padel facilities.
Padel, the UK's fastest-growing racquet sport, is significantly increasing demand for industrial property, with operators leasing over one million square feet of space in the last 18 months. This represents a nearly sevenfold surge compared to the preceding period, indicating a new and distinct occupier category for warehouses.
Last year alone, padel operators acquired more than 784,000 sq ft, a 390% increase from the year before, and over 390,000 sq ft has been leased this year. Major operators like Padel Hub and Pure Padel have secured units ranging from small spaces to warehouses exceeding 60,000 sq ft. One notable deal involved Padel Bonito leasing a 60,000 sq ft warehouse on a 10-year term.
According to Grant Lonsdale, senior director of market analytics at CoStar, padel is becoming a meaningful contributor to industrial take-up, demonstrating the sector's adaptability. Warehouses are ideal for padel due to their large, high-ceilinged spaces and parking availability. The increasing volume and spread of lettings suggest the sector is moving beyond opportunistic conversions to establish itself as a distinct occupier category.
The popularity of padel has surged, with the Lawn Tennis Association reporting that the number of players more than doubled to 860,000 last year. Celebrities such as Andy Murray, Michael Vaughan, and Virgil van Dijk have contributed to its rise. In line with this trend, FTSE 100 property developer Segro has partnered with the LTA to support the rollout of padel facilities across the UK. Segro's UK managing director, James Craddock, stated that the partnership aligns with their ambition to utilize industrial space for 'extraordinary things' and to promote grassroots participation.