New Approaches to Masterplanning Industrial Development

Industrial estates and activities in the UK, particularly in strong growth areas like London, the South East and regional cities, are facing unprecedented pressures for release to higher value uses. Consequently there is increasing interest in realising higher values, increasing density, appropriately integrating industrial activities with other land uses, and finding new locations and formats for industrial activities.Savills, together with our architectural practice partners, have an in-depth understanding of the requirements and opportunities for industry which we combine with innovative thinking on new approaches to the provision of employment premises. Below we set out our approach to:

� Forecasting employment floorspace demand and creating a brief for mixed use development.

� Creating better quality industrial areas.

� Increasing industrial densities.

� Creating successful mixed use areas.

� Finding new locations for industry. 1

Savills is partnered with several architecture practices who are also engaged in the design challenges of industrial space planning and achieving the right balance between economics and good design. Examples of the work of dRMM, Scott Brownrigg, and Hawkins/Brown are included in this brochure.

The Context and Opportunity

1 When talking about industrial estates and areas we include all activities that typically occupy such areas including manufacturing, distribution, B1c type offices, utilities, depots, services etc.

savills.co.uk

ScottBrownrigg’s Smart Shed integrates urban logistics with manufacturing and technology usesScott Brownrigg - Advanced Technologies 2017

We have developed a new industrial typologies tool which we combine with floorspace demand forecasting to prepare realistic masterplan briefs to frame the transformation of industrial areas. This covers:

� Categorising industrial premises by type.

� Categorising type and activity by its potential for integration with other land uses at a building, block or neighbourhood level.

� Floorspace demand forecasting for each type of industrial space using historic data and analysis of property market areas, market intelligence, and emerging trends.

� Quantification of employment space best separated from sensitive (usually residential) uses, and space that can be integrated with sensitive uses – this is the brief for the masterplan architects.

Our demand forecasting includes consideration of opportunities not always expressed in the market. This includes activities such as co-working spaces (which could extend to industrial activities in the right circumstances) and incubators and accelerators. Where relevant it can incorporate consideration of emerging sectors and activities such as bioscience, digital media and designers-makers. Our approach though frames these opportunities in a wider economic context with realistic estimates of floorspace demand and supply.

Our demand forecasting can be used to inform development appraisals and also to provide evidence within a planning policy context. Where appropriate our work can be used to justify divergence from planning policy when there is a mismatch between council aspirations and project viability.

Demand Forecasting and Creating a Brief for Mixed Use Development

Savills Analysis of Industrial Property Market Areas for Oxford-Milton Keynes-Cambridge StudySavills Oxford-Milton Keynes-Cambridge Corridor Property Market Study for the NIC, 2016

Designer/ Maker/ Other

Indicative Floorspace Demand Masterplanning Guidance by Typologies

Large Industrial

Sq

uare

Fee

t

Large Industrial/

Small Industrial

Small Industrial/ Designer/

Maker

Yard Type Space

Large Office

Small Industrial/

Other

Small Office/ Other

-

200,000

100,000

300,000

400,000

500,000

600,000

700,000

Neighbourhood Block Building

Occupancy Forecast to 2020

0.8

0.9

1.0

1.2

1.2

1.3

1.4

Sq

uare

Fee

t (In

dex

ed)

A1M Occupancy sq ft (indexed)M1 Occupancy sq ft (indexed)M11 Occupancy sq ft (indexed)M40 Occupancy sq ft (indexed)

A1M Occupancy sq ft (indexed projected)M1 Occupancy sq ft (indexed projected)M11 Occupancy sq ft (indexed projected)M40 Occupancy sq ft (indexed projected)

20092010

20112012

20132014

20152016

20172018

20192020

With pressure on scarce land from competing uses industrial rents and values are increasing and local authorities are keen to explore intensification options that retain existing employment while freeing up some land for alternative uses.

This context offers opportunities for the appropriate intensification of industry. In the right circumstances this could extend to the development of multi-storey industrial buildings with internal ramps or lifts to service upper floors. There are recent precedents in the UK of both small unit development and large warehouse / distribution sheds (X2, Heathrow) but not for medium size units typically requiring van access. Such buildings could be viable in areas with sufficiently high rents and/or where the value of the land released for other uses could allow cross-subsidy. On the cover page of this brochure is an illustration we have worked up with Scott Brownrigg to illustrate a potential format.

Many industrial areas are functional and uninviting. Consequently they are not a workplace option for parts of the workforce that expects an attractive and stimulating environment and who bring with them new ideas for innovation and creativity. There is an opportunity to create or transform industrial areas into more appealing environments by for example:

� Creating central service hubs with quality business support, retail and leisure functions.

� Integrating food and service outlets in an appealing way.

� Creating a more pedestrian friendly and connected environment while accommodating the requirements of service vehicles and HGVs.

� Providing a diversity of flexible premises that accommodate companies of different sizes, sectors, and stages of development.

Creating Better Quality Industrial Areas

Increasing Industrial Densities

dRMM Estate Transformation and Intensification

Traditional Industrial Estate

Densified Multi Use Estate

Important Notice

Savills, their clients and any joint agents give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Designed and Produced by Savills Marketing: 020 7499 8644 | March 2017

Rory Brooke Head of Economics+44 (0) 20 3320 8276RBrooke@savills.com

Richard SullivanNational Head of Industrial & Logistics+44 (0) 20 7409 8125RSullivan@savills.com

Kevin MofidDirector, Industrial Research+44 (0) 20 3618 3612KMofid@savills.com

For further information please contact:

Where appropriate industrial activities can be integrated at a building or block level. We draw together demand forecasting, innovative design solutions, and industry intensification to create masterplans for industrial areas that enhance the local economy whilst introducing other land uses. Above is an illustration by Hawkins/Brown showing how these different components come together. The specifics will be developed in the context of individual sites and contexts.

With growing pressure to release industrial land, particularly where located near existing or proposed public transport nodes, and the general restriction on supply there is increasing interest in making new allocations for industry in locations that fit industrial requirements. This can mean in greenfield locations with good access to the motorway and trunk road network. Savills is working on a number of such schemes, including researching and preparing the market and demand case for such allocations. We can help developers and land owners prepare the case for additional allocations.

Creating Successful Mixed Use Areas

Finding New Industrial Land

Hawkins/Brown Urban Logistics in Mixed Used ContextHawkins/Brown