Light industrial units in London are in high demand, offering small to medium-sized businesses a flexible and accessible space for activities like storage, workshops, and light manufacturing. As one of the most competitive real estate markets in the UK, London offers a range of options in various neighborhoods with different levels of affordability and access to major transport routes. This guide explores the top areas, average rental prices, and factors to consider when renting light industrial units in London.
Light industrial units in London are ideal for businesses involved in:
Renting these units in London provides the added advantage of close proximity to clients, suppliers, and a vast labor pool while offering quick access to London’s extensive transport networks.
London’s industrial property market offers a range of light industrial units suitable for various uses, including:
Workshops and Studios: Smaller spaces ideal for hands-on work, such as repairs, creative studios, or manufacturing prototypes. These units are commonly found in areas that support creative industries, such as Hackney and Shoreditch.
Warehouse and Storage Units: Units with easy access to loading areas, perfect for businesses needing space for inventory, distribution, or packaging.
Flex Space/Hybrid Units: Combining office and industrial space, hybrid units allow businesses to operate administrative and production functions from the same location.
Shared Industrial Units: Many London industrial estates offer shared units where several businesses can share the space and amenities, an excellent option for small or startup businesses.
London offers several ideal areas for light industrial units, each with unique benefits for businesses:
Park Royal (Northwest London): One of London’s largest industrial estates, Park Royal has easy access to the A40 and the North Circular, making it a top choice for businesses needing good transport links for storage or manufacturing.
Hackney and Shoreditch (East London): Popular among creative industries, these areas offer smaller workshop spaces and flex units with proximity to central London, making them ideal for light manufacturing and small production.
Wimbledon and Merton (Southwest London): With access to the A3 and South Western Railway, this area offers affordable industrial units, especially suited for small to medium businesses needing storage or workshop space.
Silvertown and Docklands (East London): Close to London City Airport and major transportation routes like the A13, this area offers modern industrial spaces, ideal for companies needing distribution facilities near the Thames Gateway.
Tottenham (North London): Tottenham’s industrial areas offer a mix of warehouses and smaller units, making it attractive for businesses that want accessible storage or distribution points at competitive rates.
Woolwich and Greenwich (Southeast London): These areas offer a mix of light industrial spaces and excellent transport links, including the DLR, making it a strategic option for logistics and small manufacturing businesses.
Rental prices for light industrial units in London vary depending on the size, location, and amenities offered. Here’s a general breakdown:
Small Units (up to 2,000 sq. ft.): Prices range from £15 to £25 per square foot annually, ideal for small businesses in areas like Hackney or Wimbledon.
Medium-sized Units (2,000 - 5,000 sq. ft.): Typically, these units rent for £12 to £20 per square foot annually, suitable for larger operations needing flexibility and accessibility.
Large Units (5,000+ sq. ft.): Rental rates for larger light industrial spaces range from £10 to £18 per square foot annually in areas like Park Royal, where space and transport options are ample.
These rates are averages, and specific rental prices will vary depending on the property’s features, location, and lease terms.
When renting a light industrial unit, it’s essential to consider the following factors to ensure the property meets your business needs:
Location and Transport Links: Access to major roads, rail links, or central London can be crucial for logistics-focused businesses. Areas with good transport connections, like Park Royal or Docklands, can enhance operational efficiency.
Property Size and Layout: Choose a space that matches your current and future needs, considering layout flexibility, ceiling height, and loading area access if needed.
Loading Docks and Accessibility: Look for ground-level access, loading bays, and sufficient parking for any delivery vehicles if your business requires frequent loading and unloading.
Lease Terms and Flexibility: Industrial leases may have specific terms regarding tenant responsibilities and property modifications. Fraser Bond can assist with negotiations to secure favorable and flexible lease terms.
Amenities and Infrastructure: Depending on your needs, consider spaces with security features, high power supply, climate control, or specialized flooring.
Zoning and Compliance: Ensure the industrial unit is zoned for your business activities. Some properties have limitations on noise levels or specific manufacturing processes.
Fraser Bond provides expert support for businesses searching for light industrial units in London. Here’s how we can assist:
Property Matching and Search: Our team has access to an extensive network of industrial units across London, allowing us to quickly identify spaces that match your budget, location preferences, and business needs.
Market Insights and Guidance: With in-depth market knowledge, Fraser Bond provides insights on rental pricing, trends, and leasing availability to help you make informed decisions.
Lease Negotiation and Documentation: We work with clients to negotiate lease terms, ensuring favorable and flexible conditions that support long-term growth and operational needs.
Property Management: For clients who prefer additional support, Fraser Bond offers property management services to handle maintenance, tenant relations, and compliance requirements.
1. What is the typical lease length for light industrial units in London?
Lease terms can vary but typically range from 3 to 10 years, with shorter-term leases available for smaller units. Fraser Bond can assist in finding properties with lease terms that match your business plans.
2. Are modifications allowed in rented industrial units?
Modifications are often permitted but may require landlord approval, especially if they involve structural changes. The lease will specify which modifications are allowed.
3. Are shared industrial spaces available in London?
Yes, many industrial estates offer shared spaces where multiple businesses can lease smaller sections within a larger unit. These are ideal for small or startup businesses.
4. What additional costs should I expect when renting industrial space?
Beyond rent, additional costs may include business rates, utilities, maintenance fees, and insurance. Factor these into your budget when evaluating potential spaces.
London’s light industrial units offer businesses a practical, accessible solution for workshop, storage, and light manufacturing needs. Areas like Park Royal, Wimbledon, and Docklands provide a range of options, from small workshops to larger storage units. Fraser Bond’s expert team is here to guide you through the leasing process, from property search to securing favorable lease terms. Contact us today to start your search for the ideal light industrial unit in London.
