Despite the turbulence of the last few years, the industrial and logistics property class has continued to defy the prevailing winds, with take-up figures for the end of last year predicted to match or even surpass the records set by 2021. That 2022 proved to be another record-breaking year for industrial and logistics property is no surprise to us here at Urban Edge, given the volume of enquiries we received from the sector and the number of schemes we have running through planning or on site. Our own projections for the sector into this new year and beyond remain incredibly positive, with a growing number of significant schemes currently on our drawing boards and new enquiries proceeding at pace.

Demand continues to come from a wide range of developers and occupiers, and our current projects cover the spectrum of the industrial sector – from a new 100,000 sq.ft distribution warehouse on the Erdington Industrial Estate in Birmingham, to a multi-million-pound landmark HGV workshop in West Thurrock and two self-storage units in both Skelmersdale and Corby for the Storage Team. We are currently on site at Quarry Wood Industrial Estate overseeing the refurbishment and reconfiguration of light industrial units to meet the current requirements of modern occupiers and support the site’s continued viability as an industrial park. Last year also saw us complete on the redevelopment of a former factory site in Croydon to provide a high-quality Class B development to meet the demands of modern industrial operators

This is on top of numerous projects at feasibility stage in locations as far ranging as the Republic of Ireland, Berkshire, Somerset, East London – within the all-important M25 network – and a zero-carbon industrial scheme on the south coast.

Interestingly, we have seen a rising demand for schemes that better meet Environmental, Social, and Governance (ESG) benchmarks over the last 12 to 18 months. Our experience designing and delivering net-zero schemes in both this and other sectors has seen us receive a number of enquiries from industrial and logistics owners, developers and operators looking to improve the sustainability of their schemes or to design and deliver net-zero buildings.

Our design for the distribution warehouse on the Erdington Industrial Estate in Birmingham, for example, proposes a number of interventions and initiatives to improve energy performance, reduce air pollution and improve local air quality. Likewise, we were instructed to design and deliver to net-zero a high-quality Class B development of light industrial units on a former factory site in Croydon which achieved BREEAM Excellent and net-zero carbon.

With rising energy costs and impending energy-efficiency legislation exerting yet more pressure on the sector, we expect to see sustainability and net-zero criteria continuing to dominate the agenda and it’s an issue that we recommend clients get to grips with as early as possible. So, too, do we anticipate a growing focus on health and wellbeing provision for occupiers as they compete to attract and retain key personnel. Creating enhanced facilities for staff was a major consideration for a scheme we looked at in the north west recently and included external spaces such as nature walks, running tracks and picnic areas on the perimeter of the site as part of the client’s health and wellbeing agenda.

Our extensive experience in opening up opportunities for asset creation on sometimes challenging sites has seen us deliver a number of high-quality, highly optimised schemes. This is especially important in areas of high demand where availability and cost of land will continue to see a push for the intensification of industrial and logistics buildings, with many developers looking to maximise the opportunities for their sites, even exploring multi-level, multi-use options.

We also perceive that there are fantastic opportunities to re-use and refurbish existing buildings, as proved by our ongoing work at Quarry Wood Industrial Park to reconfigure a number of post-War buildings, largely asbestos clad, to provide light industrial units that can meet modern users’ requirements. As architects and landscape design specialists, we also have a critical role to play in better integrating industrial and logistics development into local communities, mitigating the impact of vehicle movements and making it easy to navigate around schemes.

Dave Frost, Senior Associate Director says: “As evidenced by our own workload and the number of enquiries we have received, the pace of development in the industrial and logistics sector, particularly in the prime south east market and the area around the M25, shows no sign of slowing. Importantly, it is also one of the fastest growing areas of employment in the UK, it’s dynamism offering significant job creation and progression opportunities in all areas of the country.

“However, in an increasingly competitive market, owners, developers and operators require early engagement with experienced architects to maximise the opportunities of their sites at all stages of design and all the way through to a building’s operation. With our growing portfolio of industrial and logistics schemes, we are uniquely positioned to meet the key requirements of clients in the sector, utilising our knowledge and technical know-how to design deliverable schemes that create real commercial value, whilst also ensuring positive environmental, social and economic impact.”

Following the submittal of plans to Thurrock Council for a multi-million pound modern landmark workshop in West Thurrock for Spectrum VR, a leader in the maintenance and repair of commercial vehicle body shells, we received a successful planning approval on the 21st December 2022. Our proposal will replace the existing HGV service and repair workshop on the site with a new 1,726 sq.m 7-bay purpose-built facility to accommodate Spectrum VR’s expanding operations and offer them a more visible presence on a busy intersection within the London commuter belt.

We worked with multi-sector specialist contractor, Thomas Sinden, to develop an initial feasibility concept, rationalising the layouts and ensuring the spaces were the best options for the required functions. The main workshop will contain a paint centre with bespoke specialist equipment installations, including a paint oven, for the repair and painting of vehicles. An attached two storey office block will house day-to-day operations, seminar and training rooms, as well as wellness spaces for Spectrum VR staff. The plans will also enhance the landscape buffer separating the service yard from a busy roundabout as well as creating outdoor amenity spaces for staff.

Project Lead, Robert Major, explains: “The building is a bespoke industrial development with specific requirements in the workshop and office space elements, both requiring a good understanding of the client’s operational requirements and technical processes. We were appointed to this project, our first for Thomas Sinden, on a recommendation from a long-standing client who recognised our skill and ability to deliver complex schemes in this sector precisely to the client’s needs. We look forward to continuing onwards with the detailed design and delivery of the project.”

The proposed unit will be contemporary in design, using light grey cladding, contrasted with dark grey windows and sections of feature brickwork on key corners. The workshop bays are defined with half-height brick and contrasting cladding colours between bays. The main entrance to the office is marked with double-height corner glazing, adding definition as well as natural light to the public-facing workspace. A dark grey feature surrounding the glazing and main entrance doors further identifies the main entrance, particularly for visitors.

The project proposes an energy efficient external envelope with high thermal performance and a high air tightness rating. The energy strategy focuses on renewable energy, with the roof space maximised to accommodate a high number of PV panels. The overall development is aiming to be highly energy efficient, which is a key consideration for the client in looking to reduce their ongoing operational costs.

We have been granted planning permission by Birmingham City Council for a new industrial distribution warehouse at Erdington Industrial Park on behalf of Hermes Fund Managers. The building will potentially be divided into two units of high-end warehouse space, with office space for each at mezzanine level. The scheme will include service yards, car parking and a landscape buffer to reduce the visual impact on surrounding residential areas.

Dave Frost, Senior Associate Director, commented: “This has always been a popular estate due to its central location and convenient access to the M6 and this new facility will help meet the need for high-quality commercial warehouse space in the Midlands, as well as providing employment opportunities for local people during construction and in use. The scheme utilises a brownfield site to add a contemporary industrial/distribution unit to complement the existing industrial park and adds value to an existing asset for our client Hermes Fund Managers. The building has been designed to reflect the scale of the adjacent industrial and distribution buildings, whilst the attractive façade that wraps around all three of the public elevations adds great visual interest and proves not all industrial schemes need be plain boxes. The design provides sufficient internal height to match current distribution demands and enough flexibility to adapt to changing market demand and occupier requirements.”

Our design maximises the site with a single 95,000 sq.ft building, split into two independent units of 40,000 sq.ft and 55,000 sq.ft with, respectively, 2,000 sq.ft and 2,750 sq.ft of office space at mezzanine level. Two sets of parking and service yards, including both level access and sunken loading docks, are separated by fencing. The entrances to the two office areas are situated on opposite sides of the building, with clear lines of sight from the two entrances to ease navigation. This division will also improve safety by keeping pedestrian pathways separate from HGV movements.

The entrances and offices are marked by double-height glazing to maximise natural light, and a dark grey, projecting border of cladding. The main entrance doors will have a light blue frame which highlights the access points. The main body of the warehouse will use contrasting dark, mid and light grey cladding, with a splash of light blue and a horizontal emphasis to break down the elevations.

Although the site is within an established industrial park, the layout offered a few challenges, including a 15m sewer easement located north east of the site boundary which led to the building being relocated to avoid conflicts. A sub-station on the site also required us to rearrange the loading docks’ location for lorry access.

Explains Dave Frost: “Our extensive experience in opening up opportunities for asset creation on sometimes challenging sites has allowed us to develop a quality and deliverable design that can meet all the client’s key requirements. Getting the infrastructure right and making it easy to navigate around the scheme is also a key component of our design and a vital ingredient for both tenants, their customers and the long-term viability of a scheme.”

The design of the scheme also proposes a number of interventions and initiatives to improve energy performance, reduce air pollution and improve local air quality. Available roof space has been fitted with PV technology, whilst car-share spaces are to be included on the site to encourage shared journeys and 12 EV charging bays for electric vehicles. Sheltered cycle parks are also to be proposed to encourage people to cycle to work.

Our design includes a new landscape buffer along the western and northern boundaries which will screen the site and enhance the privacy of the nearby residential houses, as well as reducing any noise pollution. The landscape buffer will be a mix of trees and shrubs and will incorporate SUDS and swales for site drainage.

Industrial and logistics is one of the property classes to have emerged stronger than ever from the global pandemic, with increased investor interest in the sector accounting for 27% of all investment into UK real estate in 2021.

However, the investment boom in industrial and logistics arrives at the same time that the United Nations has declared a climate emergency and institutional investors are looking to mitigate the risks to their property portfolios from climate change and deliver better Environmental, Social, and Governance (ESG) outcomes for all their stakeholders. Developers of industrial and logistics property are coming under increasing pressure to satisfy the ESG criteria of investors and meet the UK Government’s legally binding target of Net-Zero Carbon by 2050.

Owners and developers of industrial and logistics property are also needing to meet the expectations of occupiers, many of whom have their own ESG and net-zero strategies, as well as a requirement to look after the health and wellbeing of their staff. According to Cushman & Wakefield’s recent ‘Industrial Goes Green’ report, over 80 percent of industrial occupiers are asking about sustainable warehouse solutions and 60 percent of them would like their facilities to be green-certified.

Designing and delivering sustainable schemes

For those of us charged with the design and delivery of industrial and logistics property, the rapid influence of these pressures is evident to see, with owners, developers and operators looking to upgrade the sustainability of their schemes. Here at Urban Edge, we’ve received a number of recent enquiries from industrial and logistics clients looking to improve the sustainability of their schemes or to design and deliver net-zero buildings. Where targeting BREEAM Excellent was once a rarity and something to shout about, it’s now rapidly becoming the bare minimum.

Our design for a new 95,000 sq.ft industrial distribution warehouse on the Erdington Industrial Estate in Birmingham, for example, is targeting BREEAM Excellent. Likewise, we have recently completed the redevelopment of a former factory site in Croydon to provide a high quality Class B development for modern industrial operators and have, in the past six months, been directed by our client to design and deliver the scheme to net-zero.

At the same time, we are currently working with industrial and logistics property owners who are looking to decarbonise their existing portfolio of stock, improve their energy efficiency and find ways to achieve net-zero.

Rising energy costs have, of course, had their part to play in some of the decision making, as too has impending legislation. Owners of existing industrial and logistics property will need to keep an eye on the Minimum Energy Efficiency Standards (MEES) which is expected to extend further to non-domestic properties by 2030 and require an EPC grade B or above. This will be of particular concern for landlords with more historic property portfolios as significant retrofit measures may be required to meet the new energy-efficiency regulations. We would advise landlords to futureproof their portfolios against regulatory changes by seeking advice sooner, rather than later, so that a detailed profile of a building or buildings can be undertaken to decide where and what interventions are needed.

The net-zero journey

Whilst net-zero is fast becoming the ‘must have’ for owners and developers seeking finance or looking to attract and retain top-drawer tenants, we must also pause to acknowledge that the industry is at the very start of its net-zero journey, with differing interpretations of net-zero clouding matters further.

In truth, most current net-zero buildings are primarily targeting the elimination of fossil fuels (net-zero energy), but there is a clear distinction between operational carbon and embodied carbon. Put simply, operational carbon emissions are those associated with the energy used to run the building, whilst embodied carbon emissions are those associated with the materials and products used in its construction and across the building’s whole life. A true net-zero carbon building would need to address both of these sources of carbon, without recourse to major offsetting.

Net-zero has proved particularly challenging in the industrial and logistics sector where institutional standards for the specification of buildings have dominated for a long time and many developers and designers have just stuck with what they know. This is gradually starting to change, driven primarily by the demands of modern occupiers who not only want smarter and more efficient space, but also sustainability and wellness initiatives to meet their ESG benchmarks and attract and retain quality employees.

You can see this reflected at our scheme in Erdington, where our design not only maximises the site with a single 95,000 sq.ft building, split into two independent units, but also proposes a number of interventions and initiatives to improve energy performance, reduce air pollution and improve local air quality. Available roof space has been fitted with PV technology, whilst car-share spaces are to be included on the site to encourage shared journeys and 12 EV charging bays are provisioned for electric vehicles.

For the industrial and logistics sector to start delivering fully net-zero carbon buildings, a number of challenges lie ahead, not least tackling the predominant use of steel in construction which has very high embodied carbon. Whilst we’ve spoken to a number of progressive industrial and logistics developers who are exploring the possibilities of timber frame and cladding, insurance hurdles remain due to perceived fire and water risk. Hybrid construction models, such as the use of a concrete core and base as recently proposed by insurance research group RISCAuthority, could provide a way forward to allow for an increased use of timber and other sustainable products whilst mitigating the safety concerns. We will watch with interest how the situation develops.

Early engagement the key to a greener future

Clearly, delivering on commercial expectations, maintaining productivity and profitability, whilst ensuring buildings are highly sustainable or net-zero is an extremely fine balancing act and requires a deep understanding of the industrial and logistics sector’s needs, coupled with experience of sustainable design and technical know-how. Early engagement with experienced architects is key as we can consider sustainability and energy efficiency at all stages of design from site considerations, design and masterplanning, construction and all the way to a building’s operation.

As buildings are currently responsible for approximately 25 percent of UK CO₂ emissions, with around 30 percent of those emissions from non-domestic buildings, industrial and logistics real estate has an important role to play in meeting the UK’s overall net-zero Carbon targets. Whilst net-zero is challenging, it also opens up opportunity and will secure a long-term future for companies operating within the sector.

Dave Frost | Senior Associate Director

We are pleased to announce the start on-site of our plans to transform a derelict plastics factory in Croydon into 5,650 sq.m of much-needed employment floorspace. The £8m gateway scheme will result in wider accessibility improvements at Valley Retail & Leisure Park and contribute to the London Borough of Croydon’s long-term objectives for the area.

The design will see the comprehensive redevelopment of the former Stewart Plastics factory site and reconfiguration of adjoining land to provide a high-quality Class B development with associated landscaping and car parking areas and a new link road. The regeneration of this derelict site, vacant since 2012, will deliver significant investment and local employment opportunities for the London Borough of Croydon.

Josh Rowley, Associate Director said: “The commencement of this project represents an important economic boost for Croydon and builds on our strong track record of creating deliverable employment schemes that can achieve commercial success.

“Our extensive experience in opening up opportunities for asset creation on challenging or tired sites has allowed us to develop a workable layout that can meet all the client’s key requirements. Working closely with the client, planning officers and other stakeholders, our design also meets with the London Borough of Croydon’s aspirations to create a gateway development for Valley Retail & Leisure Park, enhancing the aesthetics of the existing environment as well as delivering accessibility improvements for the wider area.”

The scheme will see the development of eight units of employment space, designed across ground and mezzanine floors to reflect the requirements of modern industrial operators as well as the Council’s aspiration to create a gateway to the retail park. A clean and uncomplicated aesthetic uses a simple palette of materials to provide unity and cohesion across the development. The elevations have slender vertical panels to help break down the perceived massing and are punctuated by a series of featured entrances which incorporate tenant signage and glazing. The development has been designed to achieve a BREEAM shell target of ‘Excellent’.

Our design team also built a good relationship with the allocated Designing Out Crime Officer (DOCO) for Croydon and have implemented a number of security measures to ensure the scheme is a safe place to work and visit.

The team also had to take into account several site constraints, including high-voltage cables and underground services. Potential traffic-flow issues with adjacent residential and retail development will be addressed with a new access road to redistribute existing traffic and reduce congestion. Importantly, the new road will create direct access to the retail park, which is home to Ikea, a Vue cinema and shops including Boots and Next, and will open up the site for potential future expansion and intensification in accordance with the Council’s wider plans.

A consistent line of semi-evergreen and deciduous shrubs of varied height, colour, texture and structure, has been proposed to run along the boundary fences fronting onto the access road to create a clean and all-year-round line of vegetation. A planting strategy has been carefully chosen to create an attractive and colourful combination of low-maintenance plants of varied shapes, structures and textures as well as foliage colour and flower in season.