Navigating the evolving landscape of Industrial and Logistics

Government planning reform: A step towards efficiency

The UK government has pledged to streamline the planning system, aiming to eliminate the inefficiencies that have plagued development for decades. A key aspect of this reform is the introduction of a “one conversation” approach—ensuring that discussions with local councils, transport authorities, and energy grids happen simultaneously, rather than in fragmented stages.

However, change won’t happen overnight. With nearly 40 years of outdated processes to overhaul, noticeable improvements will take three to four years rather than the often-quoted six to twelve months. This shift is essential for accelerating industrial growth, but patience will be necessary.

The changing landscape of industrial & logistics real estate

Warehousing and logistics facilities must be fit for purpose, incorporating new technology to stay competitive and meet evolving regulatory standards. With sustainability high on the agenda, major supermarket and grocer leases from the early 2000s, many of which are set to expire in the next 12 to 18 months, are unlikely to be renewed unless significant upgrades are made. Many of these existing spaces fail to meet ESG targets or even basic EPC requirements.

Occupier trends: Who’s taking space?

• Manufacturing: Now accounts for roughly one-third of warehouse space in the UK.
• R&D growth: Robotics and tech-focused firms are increasingly taking smaller industrial units, with power supply becoming a critical concern.
• Chinese e-commerce expansion: Companies like Shein and Temu are expected to establish UK bases as consumers demand quicker delivery times.
• E-commerce diversification: The rise of re-commerce (resale and reuse markets) is creating new warehouse demand.
• Repurposed logistics spaces: Smaller units are being converted into leisure facilities, such as padel courts and trampoline parks.
  
  

The rise of Environment Banks & Biodiversity Net Gain (BNG)

Sustainability is no longer an option—it’s a requirement. The Environment Bank concept is gaining traction, allowing developers to fund the creation of natural habitats to meet the UK’s Biodiversity Net Gain (BNG) requirements.

All new developments must achieve a 10% BNG. If the habitat isn’t delivered in the same Local Planning Authority (LPA) or National Character Area, stricter targets apply (e.g., 33% if adjacent, 100% if outside).

As firms look for ways to comply, overlaying habitat bank locations onto planning tools could be a valuable resource for developers.

Fast-tracking industrial growth

The government’s stance on industrial and logistics developments is evolving:

• Grey belt redevelopment has begun and is receiving positive feedback.
• National Planning Policy Framework (NPPF) reforms remain ambiguous regarding industrial and logistics developments within the green belt, leading to ongoing uncertainty.

Power & infrastructure: A looming crisis?

The UK’s energy landscape is changing rapidly, with soaring demand from data centres, battery storage, industrial facilities, heat pumps, EV infrastructure, and renewables. Some key challenges and trends include:

• Next-gen AI data centres require 400kW per rack for cooling—100x the energy used by traditional data storage.
• 200MW sites are becoming the new norm, often spanning 3+ acres.
• 700GW of projects are in the queue for connection, while the UK’s peak winter demand is just 44GW.
• Zombie projects clogging the system—500GW of stalled developments are expected to be removed.
• UK battery storage is at capacity, making future approvals uncertain.
• Distribution Network Operators (DNOs) reclaim capacity, enforcing new rules to ensure developments start immediately or they lose connection rights.
• Warehousing sustainability concerns: 82% of UK warehouses were built before 2000, and 60% won’t meet the minimum EPC rating of B by 2030.
• Grid approval processes are changing: Moving from a first-come, first-served system to a criteria-based approval process, potentially deprioritising battery storage.
• National Grid thresholds are shifting: Currently, developments above 1GW require permission; this is increasing to 5GW.
• Grid infrastructure is outdated, with challenges in tracking energy flow effectively. 
  
  

How can Nimbus help you navigate these changes?

The rapidly evolving industrial and logistics sector requires innovative solutions to stay ahead. Nimbus offers a powerful suite of tools designed to help developers, occupiers, and investors make data-driven decisions. Key features include:

• Advanced site-finding filters: Identify prime locations with detailed property ownership and planning insights.
• EPC data integration: Instantly assess the energy efficiency of buildings to ensure compliance with upcoming regulations.
• Energy infrastructure overlays: Access real-time data on grid locations and capacity, helping to determine site feasibility for power-intensive operations.
• Planning constraints analysis: Quickly understand local planning restrictions and biodiversity net gain requirements.
• Direct-to-vendor outreach: Easily connect with property owners using built-in contact tools.
  

Ready to see how Nimbus could help you?

Stay ahead of the competition and future-proof your developments. Book a free demonstration of Nimbus today to see how it can support your property and infrastructure strategies.