The recently published consultation document, Towards a New London Plan, marks a progressive step in the capital’s planning dialogue. Initial impressions are promising, particularly the acknowledgment of the need to consider Green Belt (or 'grey belt') release for development and the ambition to adopt a more strategic approach that identifies priority areas or boroughs for industrial logistics growth.
While it’s positive that the Plan seeks to halt further losses of industrial land, there is a risk that it merely maintains the status quo. This could prove to be a significant missed opportunity. To support the Mayor’s ambition for 88,000 new homes per year, London must also plan for the employment land that underpins this growth. That means defining how much new industrial logistics space is needed - not just protecting what remains. Based on recent delivery models, over five million square feet of new logistics floorspace per year would be required to support this level of residential growth. The London Plan should define these needs with the same clarity and rigour as it applies to housing numbers.
Savills research highlights that Greater London's core industrial land continues to contract at a rate of more than 1% per annum (about 50 hectares), underscoring the desperate need for more industrial capacity to support supply chains, particularly if housing delivery is to be increased. They advocate for safeguarding core industrial land and suggest that the next London Plan needs to be realistic about what industrial typologies are deliverable and where, enabling boroughs to meet their land requirements effectively. Prologis UK previously echoed these concerns, especially as the demand for last-mile delivery services continues to grow.
Housing and industrial growth are not competing goals - they are fundamentally interconnected. Industrial Logistics is the backbone of a modern, functioning city and a foundational sector that underpins every part of London’s economy. Construction, Retail, Healthcare and essential services all rely on efficient, well-located logistics infrastructure. Supply chain operations support high-quality jobs and power the same day / next day delivery systems that modern life depends. At the same time, the economy is increasingly being shaped by data, technology and energy resilience - all of which require strategically placed employment land. While it’s right to ensure energy-intensive uses are sustainably managed, planning must also recognize the enabling role that digital and logistics infrastructure plays in unlocking growth and productivity.
The inclusion of Heathrow as an Opportunity Area is a positive signal, reflecting a growing understanding that London’s Industrial Logistics infrastructure is not peripheral but central to a resilient, modern economy. This is especially relevant in a post-COVID world shaped by accelerated e-commerce, supply chain diversification, and the rapid evolution of digital infrastructure.
Prologis is well-positioned to help deliver this vision bringing forward strategic industrial clusters that are not only functional but also aligned with goals around sustainability, innovation, and community benefit.
Prologis welcomes the recognition in the New London Plan of both the growing importance and complexity of the data centre sector. As enablers of the digital economy, data centres are critical infrastructure, supporting everything from commerce and public services to advanced technologies like AI and automation. However, we caution against overly rigid location-based policies that risk undermining their viability. While the Plan suggests limiting data centres in order to avoid competing with industrial or residential uses, it’s essential to recognise that most data centres cannot be flexibly located. Their success depends on proximity to established Availability Zones, access to high-capacity fibre infrastructure, and critically, scalable power -factors that severely limit siting options. Rather than a restrictive spatial policy, what’s needed is an integrated approach that balances data centre demand with industrial land needs. Both sectors are foundational to London’s future economy. With smart planning, they can coexist and complement one another, particularly through intensification, co-location, clustering and shared infrastructure strategies.
As a long-term investor with a strong track record in delivering high-performing, sustainable developments, we are ready to work with boroughs, the GLA, and other stakeholders to ensure that priority locations for Industrial Logistics are realized through concrete, deliverable plans. This includes intensification where appropriate, strategic land release, and integrated planning for infrastructure, biodiversity, and employment.
The Plan rightly highlights the importance of nature recovery and sustainable development. Across our UK developments, we integrate biodiversity net gain, low-carbon construction and active community engagement. But for these ambitions to be achieved at scale, they must be developed in partnership with the industry, not layered on top of policies that constrain land supply or slow delivery. A coordinated, outcomes-based approach is essential.
A Call for Clarity, Ambition, and Collaboration
To secure London’s place in the global economy, we need a plan that matches ambition with delivery. That means:
- Quantifying the industrial land required to support housing, job creation, and economic resilience.
- Recognizing the foundational role of logistics and industrial land in both current and emerging sectors.
- Translating strategic intent like the Heathrow Opportunity Area into site-specific, investable propositions.
- Aligning economic growth, sustainability and nature recovery through collaborative planning with the private sector.
Prologis UK remains committed to helping deliver this vision. As the planning system evolves, we will continue to invest in the infrastructure, partnerships and places that drive a sustainable, high-growth future for London.
