There has been a growing research interest in measuring the impact of planning
and land-use regulations on housing market outcomes, but parallel development of
the evidence base for the business sector has yet to occur. This article
examines the impact of planning intervention on the amount of building
investment taking place at sites allocated for industrial and business
development. Measures that capture different dimensions of planning intervention
are incorporated into models of industrial building investment. The models are
estimated using a novel micro dataset on permit activity that covers a sample of
industrial and business sites in the Netherlands. The results provide evidence
of some of the expected negative effects of the regulatory role of planning
intervention, but also show that proactive, targeted planning policies exert a
significant and positive influence on investment activity. Specifically,
policy-induced improvements to the physical environment will stimulate both new
construction and refurbishment activity.