Heathrow Expansion and Industrial Property: Securing the Right Compensation

The Government’s continued backing of expansion at Heathrow Airport has placed renewed pressure on industrial property owners across West London and the Thames Valley. Warehouses, logistics units, yards and industrial estates are often among the first assets affected by safeguarding, compulsory purchase and temporary possession — yet are frequently the least well explained in public guidance.

For industrial owners and occupiers, the issue is not simply whether land will be taken, but whether the compensation offered properly reflects the true commercial impact.

 Why Heathrow expansion matters for industrial property owners

Industrial property around Heathrow underpins nationally important logistics, aviation supply chains and local employment. As expansion proposals progress, owners may face:

·       Compulsory purchase (CPO) of freehold or leasehold interests

·       Safeguarding directions restricting redevelopment, intensification or sale

·       Temporary possession for construction compounds, haul routes or utilities

·       New rights and easements affecting access, servicing or future development

Even without direct acquisition, the threat of Heathrow expansion can create long-term planning blight, weaken tenant demand and undermine asset values.

Compensation is not automatic — or straightforward

A common misconception is that compensation will “sort itself out”. In reality, industrial property compensation is technical, evidence-driven and heavily negotiated.

Key heads of claim can include:

·       Market value assessed on an unaffected basis

·       Disturbance compensation, including relocation costs and professional fees

·       Loss of profits or business interruption

·       Severance and injurious affection where retained land is devalued

·       Temporary possession compensation, often overlooked but material

Without robust valuation advice, there is a real risk that owners accept figures that do not reflect the full loss.

Why industrial assets are often under-compensated

Industrial properties present particular challenges in CPO and blight situations:

·       Complex lease structures and occupational arrangements

·       Specialised buildings or yards with limited relocation options

·       Site-specific value linked to proximity to Heathrow and strategic road networks

·       Development or intensification potential ignored by acquiring authorities

Acquiring authorities tend to adopt conservative assumptions unless challenged with clear, well-supported valuation evidence.

Getting the right compensation  - not just an offer

The difference between an initial offer and a properly negotiated settlement can be substantial. Achieving the right outcome requires:

·       Detailed analysis of industrial comparables (sales, lettings and yields)

·       A clear understanding of alternative use and redevelopment potential

·       Proper separation of market value and disturbance claims

·       Early strategic positioning to avoid being forced into reactive negotiations

This is where specialist advice makes a measurable difference.

How Olden Property helps industrial owners maximise compensation

Olden Property specialises in advising industrial property owners affected by infrastructure schemes, including Heathrow expansion. Our focus is simple: ensuring you receive the correct compensation, fully reflecting the commercial reality of your asset.

We assist with:

·       Independent, RICS-compliant valuations for CPO and blight claims

·       Identification and quantification of all heads of compensation

·       Strategic advice on statutory blight notices and early sale routes

·       Negotiation with acquiring authorities and their surveyors

·       Support for landlords, occupiers and investors with complex interests

Our role is not just to value your property, but to protect its value and income stream through the process.