How does the lack of power and development land as well as planning constraints challenge Labour’s growth targets?
The UK’s industrial and logistics businesses keep the country running but the lack of land and available power along with planning constraints and delays are all preventing growth. Rob Champion, Partner and Head of Industrial & Logistics at Fisher German, believes Labour needs to upgrade the country’s industrial infrastructure and enable the delivery of employment development through further planning reform to meet its growth targets.
Industrial and logistics at all scales should be at the front and centre of Labour’s growth objectives in relation to planning and development because of its importance in powering the economy rather than just focusing on housebuilding.
Statistics released by the British Property Federation highlight that the industrial and logistics industry adds over £137.5bn to the economy, which is the equivalent of 7% of Gross Value Added, and that the sector supports one in 12 jobs across the country as well as contributing another £7bn indirectly to local communities through the planning system.
While it is positive to see that freight and logistics along with laboratories, gigafactories and data centres have been identified as key uses requiring appropriate strategic sites in the new draft National Planning Policy Framework (NPPF), the Government needs to place even greater weight on the delivery of best in class commercial space at all scales as part of the plan to stimulate economic growth and ensure the UK becomes a world leader in technology, manufacturing and logistics.
Allied to that, there needs to be robust infrastructure with sufficient capacity along with clear, deliverable and ambitious planning policies.
It is important the new Government tasks local authorities with focusing on the employment-
generating uses of appropriate sites when making strategic planning decisions.
The biggest issue however is power – or the lack of it. The transmission and distribution network operators are struggling to deliver power to large projects – it was taking around 14 years until the Conservative Government introduced The Transmission Acceleration Action Plan which seeks to halve the end-to-end build time of electricity transmission network infrastructure, from 14 to seven years.
To meet the growing demand from businesses and, in turn, boost the economy, it is going to be vital for Labour to crack this conundrum which itself is, in part, connected with the issues associated with planning and strategic decision making, otherwise this blocker will continue to stifle growth.
The industrial and logistics industry is increasingly looking to the electric market and the importance of new developments being located where there is access to power is absolutely crucial.
We are now seeing that while location remains vital to developers when they are selecting sites, having access to power may, in certain cases, override the usual ‘prime prime’
location characteristics. This could result in locations traditionally referred to as secondary in industrial and logistics terms receiving substantial investment as businesses align themselves with a suitable power supply.
The UK continues to see demand from innovative and progressive companies who are requiring best- in- class industrial, logistics and laboratory facilities with high energy efficiency credentials and the best working environments for their employees.
The UK market has some of the world’s best developers of commercial real estate who are and have been for some time at the forefront of building design and focused on continual improvement.
Collectively, these vital players in the UK economy are being constrained due to systemic failure and I encourage the new government to be bold in their policy- making and, crucially, listen to our industry to gain reasoned insight into how best to facilitate change and, in turn, enhance the attractiveness and productivity of the UK.
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Recent deals done
Land at Ogden Road, Doncaster
Our commercial agency team assists a major client in acquiring a 31-acre business park in Hucknall, Nottinghamshire
Our commercial agency team have assisted their client Clowes Developments in the off-market acquisition of a major new business park in Nottinghamshire with permission for around 500,000 sq ft of warehouse and industrial space.
Harrier Park in Hucknall, Nottingham, has planning permission for six new buildings to be constructed for industrial and logistics use. The site has been purchased by Clowes off RollsRoyce via their development manager Muse.
Fisher German has been retained, jointly alongside fellow agents FHP, at the 31-acre site which dates back to World War II when it was used as an aerodrome.
In the 1950s, it was the location of the world’s first vertical aircraft take-off, leading to the development of the famous Harrier ‘Jump Jet’ which led to the name Harrier Park.
Now, Fisher German has been instructed as joint marketing agents and is inviting interest from occupiers for ‘build to suit’ industrial and warehouse buildings either to buy or rent.
Harrier Park is within a ten-minute drive of J26 and J27 of the M1, and Nottingham, Derby, East Midlands Airport and East Midlands Parkway Train Station are only a 30-minute drive from the business park.
Rob Champion, Partner and Head of Industrial and Logistics at Fisher German, said this is
a key site in Nottingham which would boost the economy through the jobs that would be created at the business park.
He added: “The site has an interesting history and the development will see the legacy of industrial innovation preserved through the delivery of best-in-class buildings for today’s forward-thinking businesses.
“We are expecting very strong interest from a range of sectors since the market remains strong and we will be using our market knowledge and key connections to identify potential occupiers.”
Miles Youdan, Partner in Investment at Fisher German, added: “This will help to create jobs for
local people which will have a positive knock-on effect for the local economy.
“We are confident Harrier Park will be a real success story for the area, particularly with the variety of unit sizes, access to skills and its great transport links.”
Sarah Day, Senior Land Manager at Clowes Developments, added: “The site has the potential to develop just over 500,000 sq ft of industrial use facilities in a prime location with great connections across the East Midlands.
“We look forward to working with the local planning authority, Ashfield District Council, to bring forward a business park which will enhance the economy and provide employment opportunities locally.”
Former Sargents Bakery. 46,000 sq ft industrial unit
Unit 1 Berkeley Business Park, Worcester Let on a 10 year term, 47,278 sq ft unit
Site at High Premier Industrial Estate, Epworth
industrial units and office building, selfcontained 1 acre site
Unit at Speke, Liverpool
Modern high spec warehouse unit and yard, 19,077 sq ft
Unit 101 Potter Space, Droitwich
Unit 11 Brookmead, Stafford
Detached warehouse facility with secure compound, 14,533 sq ft
Harrier Park in Hucknall, Nottingham
Expanding our Industrial and Logistics Agency and Consultancy services into London and the South East
I was excited to join Fisher German in April this year to help expand the Industrial and Logistics Agency and Consultancy services covering the South East, and to support the wider national business in the Big Box disposal and Occupier Representation markets. It has been a fantastic experience so far, largely due to the friendly and collaborative culture.
FG also represents several substantial landowners on key strategic sites suitable for new logistics development. Strengthening our team will enable us to support these projects, focusing on delivering end users for them as early in the process as possible to aid delivery. Our varied service lines include a robust asset management function across the UK, allowing us to offer clients end-to-end services and explore new opportunities. We are fully
Increasing
committed to providing high-quality services within this active market asset class.
In London, Jack Dutton, George Butt and I collaborate with our core team based in our Birmingham, Worcester, Manchester, Liverpool, Doncaster and Bedford offices. We are already working on key projects from London, including several disposals and strategic development sites and occupier client requirements. Our latest landmark instruction is to dispose of a fully racked and ready-to-go 130,000 sq ft grade A logistics facility in Wellingborough West for Prologis, in collaboration with Mike Price’s team in our Birmingham office.”
Laura Sutton laura.sutton@fishergerman.co.uk 0207 747 3139
demand from occupiers for industrial open storage land
Since 2021, we have seen a growing demand from occupiers for industrial open storage land. This includes ‘last mile’ delivery operators needing van and HGV parking, and construction companies requiring space for the storing building materials and plant & machinery. Additionally, specialised sectors such as EV charging and battery storage operators are seeking open storage land, prioritising sites with good grid connections and comprehensives services such as water, security, quality surfacing and main road access.
This increased demand for land has led to rental increases, although not uniformly, as rental values depend on factors such as location, surfacing, security, services and planning use class designation.
At Fisher German, our Commercial Lease Advisory team provides expert lease advice for landlords and tenants of industrial open storage land. Our services include rent reviews, lease renewals, due diligence on leases, expert witness, and alternative dispute resolution.
Our London office has moved!
Becket House, 36 Old Jewry, London, EC2R 8DD
Rupert Collis Head of Lease Advisory
rupert.collis@fishergerman.co.uk 01565 745324
Industrial and Logistics Team, London L-R: George, Jack and Laura
ESG for Industrial and Logistics: Maximising the opportunity
Addressing material ESG risks and opportunities is now a clear mandate for all development projects. We’re thrilled to introduce Rachel Bridge as our new dedicated ESG partner positioning us at the forefront of developing and implementing ESG strategies for our clients. Rachel will collaborate with our experienced teams across Green Energy, Sustainability, Planning, Minerals and Natural Capital. From strategic planning, to design and build it is essential to proactively manage ESG opportunities and risks to ensure the successful delivery of a project.
All planning applications, unless exempt, now require biodiversity net gain (BNG) to be provided for a minimum of 30 years. The mandatory requirement is 10% BNG, although some (Local Planning Authorities) (LPAs) are requesting up to 30% in some instances. Developers must plan in accordance with local requirements and aim to deliver the best possible solutions for both the environment and their projects. Fisher German’s Natural Capital team has extensive experience and are well-placed to provide strategic advice on optimal BNG solutions. With a 99.4% success rate in planning, Fisher German’s land and planning teams work seamlessly to ensure planning consent and natural capital optimisation.
We understand the challenges facing the industrial and logistics sector in securing power for sites. Our Green Energy and Sustainability team led by Darren Edwards, offers solutions including solar, wind and battery storage for
developments. Having represented clients in more than 1000 renewable energy schemes, we are well placed to undertake feasibility assessments and cost /benefit analysis to identify the most suitable renewable energy generation systems for each site.
Delivering Net Zero is a critical aspect of ESG, Fisher German’s dedicated team conduct EPC assessments to meet current and future Minimum Energy Efficiency Standards (MEES). We can review your portfolio and provide you with a schedule of prioritised changes to achieve regulatory compliance and enhance building performance. Our advice helps owners optimise return on investment, compete for the best tenants, ensure full compliance and reduce energy costs and carbon footprint.
All development creates change, and we understand the construction phase of
developing industrial and logistics sites. It is essential that each development has a materials management plan to maximise the natural resources, enhance on-site reuse and minimise the project’s carbon footprint. Fisher German’s minerals team specialises in materials management plans and secondary aggregate advice, ensuring that development is cost effective and aligns with sustainability objectives.
