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Keep London Working

Turley research demonstrates the vital contribution of London’s industrial land occupiers is under threat from loss of sites.

Turley Economics and Sustainability today launched their research report Keep London Working. The report was commissioned by SEGRO to provide a voice to the industry and influence the next iteration of the London Plan.

The report highlights how the loss of industrial land across the capital is limiting site options for occupiers of this land. Compared to the GLA’s target of 37ha a year the capital has been experiencing a loss of industrial land at 106ha a year. This is three times the target. In some London boroughs the rate is much higher.

While land has been shrinking, some industrial land occupiers have been experiencing unprecedented growth. Urban logistics for example is responding to the considerable shift to e-commerce. This growth has led to changing models for urban logistics to ensure customers’ online demands are met within the timeframes they expect. These models include hub and spoke, last mile, click and collect, consolidation centres and reverse logistics. All of these approaches have specific locational requirements within the capital.

However, as London’s industrial land reduces in volume, industrial occupiers, both those operating within urban logistics and others, are facing fewer options for new sites to fulfil their growth, and many are having to change their site search criteria to fit the supply available. If these operations are pushed out of London there will be environmental consequences due to longer distances travelled to the point of delivery and potentially less rigorous environmental policies for buildings outside of the capital.

The research concludes with 10 recommendations:

1. The GLA should undertake a London-wide review of Strategic Industrial Land and the London Plan policy 2.17 (Strategic Industrial Locations).
2. The GLA should prepare a full and comprehensive demand assessment for industrial land recognising that certain non-logistics based sectors have the propensity to demand some logistics floorspace as part of their operations.
3. The GLA should undertake a full review of policy designations for industrial land to ensure they are fit for purpose and reflect the most appropriate locations for urban logistics operators across the full range of operation types, as well as other sectors which have a significant logistics component to their activities.
4. The London Plan should acknowledge and make provision for last mile requirements for land and premises within inner and central London.
5. The London Plan should recognise the location requirements of urban logistics operators in establishing industrial locations, noting that locations out of London are unlikely to enable them to perform effectively.
6. Flexible planning policies should be devised to take account of the rapidly evolving technical and operational needs of urban logistics occupiers.
7. The GLA should investigate a requirement for replacement land to be allocated or re-designated to counter losses above target levels.
8. Consideration should be given to the limitations for intensification of industrial uses.
9. Roll out of and improvements to infrastructure should be considered so as to support the industry’s adoption of environmental technologies.
10. A GLA industrial and logistics sounding board should be set up to provide a voice for the industry within London and to inform the implementation of the above recommendations into effective policy.

If you have any questions about this report, please contact Amy Gilham or Lesley Treacy.

2 February 2017