The London Industrial Land Demand study, led by CAG, assesses land demands for various types of industry and the amount of industrial land that London needs to maintain to ensure it continues to function as a successful and sustainable city. There is no definitive guidance as to what is the right amount of industrial land: as London continues to grow there are increasing pressures on all forms of land use activity to demonstrate that they are contributing efficiently to London’s needs. Industrial land in London is under particular pressure given the high demand for housing land and the much higher land values that residential development commands compared to industrial.

The report considers the London industrial market in the context of the Wider South East economy, to examine existing linkages and consider how these may develop on the future.

Specifically, this study informs the Industrial Release Benchmarks which are published in the Land for Industry and Transport SPG. The current SPG provides guidance on the amount of industrial land to be released at Borough level over the London Plan period 2011-31 and the context for this updated assessment is set by the fact that current release levels are running at well in excess of the benchmarks.

The report produced forecast of demand for land for manufacturing, logistics and wider industrial uses. It explored the industry response to diminishing industrial land, in particular looking at the potential for:

• Intensification, with industrial land accommodating more dense development
• Substitution, with some of London’s industrial demand being serviced from the wider South East
• Co-location, with the potential for industrial activity being incorporated into mixed-use development.

The report will inform the next iteration of the London Plan.