At Chetwoods, we have long championed the potential of co-location to foster more inclusive, productive, and sustainable urban places, particularly within London, where land constraints demand bold, imaginative solutions. As the latest research in Turley’s new report 'Co-Location in London: What’s the State of Play’ shows however, co-location is entering a new phase shaped not only by policy evolution but by economic pressures, shifting market typologies, and lessons in delivery.

The original promise of co-location was ambitious: intensify employment space while addressing the capital’s chronic housing shortage, combining industrial and residential together on the same site. Yet in practice, the concept has proven complex. What we are seeing now is a reframing of co-location to adapt to a changing London and the economic and political climate.

The most notable shift noted in the report is in what is understood by “industrial” and “residential.” The ground-floor “shed” is becoming ‘lighter’ with more creative studios and ultra-urban logistics businesses than heavy-duty warehousing or manufacturing. Meanwhile, the residential above increasingly features alternative typologies such as build-to-rent, student housing, or co-living. These adaptable formats offer speed, control, and flexibility for developers navigating uncertain markets, but they also raise questions about permanence, community integration, and long-term quality of life.

Above: SEGRO Park Wapping | Chetwoods

Ambitious vertical stacking concepts were initially the most symbolic expression of co-location, but there is a growing appreciation for horizontal and hybrid models as design solutions that better reflect operational realities and lifecycle differences between industrial and residential assets. In our own work at Chetwoods, we have evolved typologies where industrial identity is not diluted but celebrated, and when both industrial and residential uses are given space to co-exist in thriving communities.

Above: Bloom Greenwich | Chetwoods

Our client Bloom, a specialist investor and owner of multi-let industrial estates in urban areas and cities, offers a valuable perspective here.  With extensive experience in delivering multi-let ultra urban industrial estates such as those we have designed and delivered for them in Brixton and Greenwich, Bloom sees co-location as a natural evolution of London’s urban fabric, reviving the mixed-use patterns of community uses, such as residential, office, retail, healthcare and schools, that historically defined industrial cities. These developments highlight the importance of collaborative design and early coordination to balance residential amenity with industrial functionality, and stress that co-location only works when all uses are treated as equal from day one, not as afterthoughts in pursuit of policy compliance.

Above: Bloom Brixton | Chetwoods

The report demonstrates that the challenges of co-location are real. Viability continues to stall ambitious schemes. Affordable workspace and housing which were once non-negotiables, are increasingly squeezed by cost pressures. Yet its tone remains optimistic, highlighting that the policy landscape is slowly catching up, with more London boroughs offering clarity and support. Cleaner industrial technologies, electric fleets, and digital platforms are making proximity less problematic, and clever design approaches, backed by robust data and stakeholder collaboration, are beginning to address long-standing tensions between logistics and liveability.

“Done well, co-location can provide a bold template for future cities that are productive, inclusive, and resource-efficient. At Chetwoods, we believe the next phase must go beyond designing spaces, it should be about placemaking, operational harmony, and creating long-term social and environmental value.” Alex Crane, Director at Chetwoods.