Momentum viewpoint: Co-Location & last-mile
This Momentum viewpoint was originally published in Turley’s 2025 research report Co-Location in London: What’s the State of Play?
As more Co-Location developments are explored and designed, there is increasing awareness that the industrial parts of these sites need to operate with lower noise levels and vehicular movements compared to traditional big box industrial sites. This is considered particularly important in urban locations and for vertical Co-Location development to harmonise with residential land uses. The uses of industrial land are diverse, even within the category of ‘light industry’, and are influenced by what the surrounding landscape allows in terms of spatial and operational constraints. With the increasing demand for consolidation hubs and last mile strategies from commercial developments in central London, if carefully designed and managed, might last-mile logistics be a suitable complimentary land use to be co-located with residential land uses?
The ‘last-mile’ is defined as the last step in the supply chain however the actual distance of the ‘mile’ varies depending on where the site and the end-user are located. A last-mile logistics centre is typically designed to consolidate incoming goods onto smaller vehicles such as electric vans and cargo bikes. As such, the overall number of Heavy Goods Vehicle (HGV) movements would be reduced or limited compared to traditional warehouses, which would complement the residential uses.
Last-mile logistics sites benefit from being located close to urban centres as the greater the physical distance to the final destination of the goods being delivered is reduced, the increased potential for those trips to be carried out on cargo bikes or electric vans. Similarly, urban centres are more likely to advantage from better public transport connectivity which would improve connectivity for both employees of the industrial component as well as the residential occupiers, and reduce the overall need for car parking spaces. As with any other industrial provision on Co-Location schemes, careful design considerations will be necessary. For example, to ensure that the vehicular access for the last-mile logistics hub is separated from the residential access points. Whilst the concept is still relatively new, we think there is an opportunity to develop the feasibility of these uses as part of a wider exploration of how sub-defining industrial uses (e.g. logistics hubs versus manufacturing) can help identify the most suitable Co-Location opportunities.
