London’s industrial and residential sectors in deadlock
I’m intrigued by the constant push and pull between the capital’s industrial and residential sectors.
Projected population growth means that 52,000 new homes must be built in London within the next decade – and each residential property needs 69 sq ft of warehouse space to support it.
Since 2011, only nine of the capital’s 35 boroughs have seen an increase in available industrial floorspace – and there’s strong competition over any space that’s left.
Research by Savills shows that during that same period, the London industrial sector lost some 5.7 million sq ft of property, with much of that space being snapped up by residential developers.
Industrial developers have been pushed east where land is (slightly!) cheaper – which has intensified shortages in residential space there. The dearth of remaining industrial space has increased land values beyond the affordability of many residential developers!
I have observed developers trying to integrate residential and commercial developments in to mixed communities, as they do in places like Singapore – famous for its shop houses. Some commercial activities can co-exist more easily whilst others do not because of noise, emissions, traffic and hours of operation. Ultimately we need to find more efficient ways of using the limited available land.
You can find out more about all of this here.
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Formed in 2016, Preston & Preston Capital is a British property investment firm focused on long term ownership, leasing and active management of mixed-use, commercial and light industrial properties. We are constantly seeking new assets to develop and add to our growing high-yield portfolio.
