Industrial Intensification
The setting
Industrial land plays a vital role in supporting London’s economy. It supports a range of jobs and sectors that are critical to good growth. Alongside heavier industries, these areas host a broad mix of SME businesses and cultural production workspace. They also provide social infrastructure such as wholesale markets, waste and recycling sites, the transport network and more. Many businesses and supply chains rely on these industrial sites for just-in-time delivery and business-to-business logistics.
Over the last 20 years, industrial capacity in London has fallen by around a quarter. That’s the equivalent of 840 football pitches (6,000,000m2) of industrial floorspace lost. At the same time, demand for industrial land is forecast to rise over the next 20 years. In particular, there is a need for logistics and SME space to service London’s growing economy and population. This growth in demand for industrial space is also reflected in corresponding land values.
The London Plan refers to meeting current and future demand for the wide range of industrial functions, in particular in designated areas. It also aims to encourage economic growth by supporting development that targets intensifying industrial land. This industrial land intensification, conducted through a coordinated area-wide plan-led or masterplanning process may facilitate the delivery of residential and other uses, but it must work hard to meet these objectives.
Our vision
We want to help meet future demand and the London Plan’s strategic objectives for industrial land. Since 2020, we’ve been working to establish a model, diverse, and market-facing portfolio of industrial and co-location developments across London. We hope that this delivery programme will help demonstrate the value of industrial intensification to the sector, particularly with multi-storey schemes. At the same time, helping to pioneer more innovative, sustainable and wellbeing focused designs that fully meet future occupier needs.
Our vision aligns with the Mayor’s policy and manifesto commitments.
The development of brownfield land and realising land use efficiency is core to the Mayor’s Good Growth agenda, to the London Plan and its Opportunity Areas.
Delivering industrial intensification is a key part of policy E7 of the London Plan. This helps to efficiently provide industrial capacity to meet current and future need, and in addition support a coordinated plan-led delivery of other uses including housing.
We are seeking to deliver proof of the concept for multi-level industrial development, which will support both London’s economy and housing supply.
The Mayor’s manifesto sets out the aim for London to be carbon-neutral by 2030, and commits to tackling climate change, reducing carbon emissions, improving air quality, and delivering green jobs. Multi-storey industrial development in the right locations will support logistics and last-mile distribution, and reduce vehicle movements to deliver the same value of goods and services. Thereby improving congestion, air quality and carbon emissions.
Our developments are primarily focussed in Opportunity Areas across the capital. A multi-level industrial development will provide a broad range of employment spaces and opportunities, with highly skilled jobs and will also serve residents within a newly formed dense neighbourhood.
Our investments
We are delivering our proposals through a combination of the Mayor’s land assets and commercial partnerships with both private and public sectors. Several projects are support by the Land Fund. This means they must provide a commercial return to be approved by the Mayor. In 2020, we secured £35m to develop several schemes across the capital. Find out more about two multi-storey industrial schemes currently in development by clicking on the links below.
Our investments must deliver:
One of our key objectives is to deliver proof of concept to the market. This is primarily focused on multi-level development. It also explores how new industrial spaces can be sustainable and how high-quality well-being spaces and facilities will cater for the diverse needs of a broad range of future occupiers.
We’re committed to the Mayor’s Green New Deal and recognise that industrial buildings must work hard to meet net-zero targets. This is a key consideration of our design, construction, and post-occupation processes where we will play a leading role in benchmarking for new industrial buildings. We are particularly focused on reducing embodied and operational carbon emissions, and energy consumption.
We want our land to contribute to the delivery of vital employment and jobs for our diverse communities to live, grow and evolve in the capital. This is interwoven into scheme development during an early objective setting process. It continues when sites become operational through our management agreements.
Likewise, we’ve used the Mayor’s land assets to partner with the public and private sector to deliver strategic industrial and mixed-use sites across London. Some examples are shown below:
- East Plus, Barking – SEGRO
- Albert Island, Newham – LB of Newham
- Thameside West, Newham – Keystone Developments
We are always on the lookout for new investments. If you have any exciting industrial opportunities, please get in touch.
Our offer
Alongside direct delivery, our industrial is an opportunity for us to learn, innovate and collaborate. We hope that we can work with others to deliver strategic opportunities and use our recent experiences and expertise to help others on their own development journey.
We are already helping our partners deliver at:
Read our case studies and find out more about the support we can offer you.
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