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Employment Land and Premises Study Oadby and Wigston Borough Council

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Employment Land and Premises Study Oadby and Wigston Borough Council Employment Land and Premises Study Oadby and Wigston Borough Council O26(e)/Final Report/October 2017/BE Group Employment Land and Premises Study Oadby and Wigston Borough Council CONTENTS EXECUTIVE SUMMARY ........................................................................................................................ 1 1.0 INTRODUCTION ...................................................................................................................... 9 2.0 STRATEGIC CONTEXT ........................................................................................................ 16 3.0 SOCIO-ECONOMIC PROFILE .............................................................................................. 36 4.0 PROPERTY MARKET ASSESSMENT ................................................................................. 47 5.0 STAKEHOLDER CONSULTATIONS .................................................................................... 62 6.0 EMPLOYMENT AREAS AND EMPLOYMENT LAND .......................................................... 65 7.0 FUNCTIONAL ECONOMIC MARKET AREA ..................................................................... 108 8.0 OBJECTIVELY ASSESSED NEEDS .................................................................................. 125 9.0 LAND NEEDS OF NON-B CLASS USES ........................................................................... 140 10.0 CONCLUSIONS ................................................................................................................... 147 11.0 RECOMMENDATIONS ........................................................................................................ 168 Appendix 1 – List of Consultees Appendix 2 – Property Schedules for Industrial and Offices Appendix 3 – Employment Areas Scoring System Appendix 4 – Employment Areas Scoring Results Appendix 5 – Developer Marketing Standards O26(e)/Final Report/October 2017/BE Group Employment Land and Premises Study Oadby and Wigston Borough Council EXECUTIVE SUMMARY Introduction i) This report assesses the supply, need and demand for employment land and premises (use class B) in the Borough of Oadby and Wigston. It has been carried out to “determine the overall requirement to meet the employment needs for the Borough of Oadby and Wigston to 2031. The key objective of the assessment is to provide Oadby and Wigston Borough Council with a robust evidence base on which to develop the employment element of the Local Plan.” The study updates previous employment land evidence base documents for the Borough. It also provides a local compliment to the county-wide Leicester and Leicestershire Housing and Economic Development Needs Assessment (HEDNA). There are three main objectives to this study, to: • “Undertake an audit and provide a detailed analysis and understanding of the Borough’s existing eight Identified Employment Areas and premises in terms of quantity, nature and quality • Develop a hierarchy of the Borough’s employment sites identifying which sites should be sustained for employment use and which sites have the scope for redevelopment/ reallocation… • …the study should identify the level and type of employment land that would be appropriate within the Council’s Direction for Growth area(s). “ Methodology ii) A number of research methods have been used, including site visits and interviews with property market stakeholders such as developers, investors and their agents. Major employers in the Borough have been individually consulted, as have key public-sector agencies. The property market in the local authority areas elsewhere in Leicester and Leicestershire has been reviewed through desktop analysis of employment and planning strategies, and consultations with officers from those local authorities. Finally, the land supply has been assessed against forecast data to understand future land need. The methodology follows Planning Practice Guidance on employment land reviews. Findings iii) The Borough of Oadby and Wigston has a relatively affluent and skilled population, with reasonable level of economic activity. O26(e)/Final Report/October 2017/BE Group 1 Employment Land and Premises Study Oadby and Wigston Borough Council iv) The Borough of Oadby and Wigston’s dependence on public sector employment is slightly above average with 30 percent of the Borough’s workforce employed in public administration, education and health, in 2016. This will reflect employment at South Leicestershire College, the government offices on Tigers Road, and nearby facilities such as HMP Glen Parva. v) The Borough of Oadby and Wigston also retains a strong local manufacturing sector, with 17.6 percent of the working population in manufacturing jobs, well above wider averages. In terms of service sectors, business administration and support services, along with public administration and defence have the strongest roles. vi) There is a strong desire for growth amongst the Borough’s large businesses, complimented by interest from inward investors from elsewhere in the Leicester Conurbation. This is generating property requirements of up to 3250-5000 sqm, which could be delivered as Design and Build opportunities of up to 1.28 ha each and with the occupiers showing specific interest in the Wigston Direction for Growth Site. vii) Larger units, of more than 500 sqm let or sell quickly when they come to the market. Across Leicester generally there is a shortage of smaller industrial units of up to 200 sqm. In the City, the best quality light industrial space can achieve £80/sqm, but businesses come to the Borough of Oadby and Wigston for more affordable options and are unlikely to pay more than £60/sqm, for new or second-hand space. A development of 200-450 sqm industrial units on the former R F Brookes site, Magna Road, South Wigston will meet some needs, however stakeholders indicated that other development is required to counteract the diminishing local supply of office and industrial accommodation. viii) The office market generally meets the needs of local service sector businesses, mainly for suites of up to 150 sqm. However, shortages of space across the Leicester Conurbation are encouraging some larger occupiers to look away from the City Centre and motorway accessed sites to more peripheral locations such as the Borough of Oadby and Wigston. Office rents of up to £140/sqm are achievable for good quality stock and possible future new builds, but most of the Borough of Oadby and Wigston’s existing low-quality stock achieves no more than £80/sqm. The Borough is viewed in terms of affordability which limits what occupiers will pay. O26(e)/Final Report/October 2017/BE Group 2 Employment Land and Premises Study Oadby and Wigston Borough Council ix) The defined functional economic market area for the Borough of Oadby and Wigston includes the other local authority areas of Leicester and Leicestershire. x) Within that functional economic market area most of the local authorities feel they can meet their employment land needs on land within their own local authority area boundaries. The exception is Leicester City, which has a significant, and long established, shortage of employment land and will be looking for support from its neighbours. However, the bulk of the need will be met in the SUEs and other Growth Areas of Blaby and Charnwood. The small land supply of the Borough of Oadby and Wigston will make only a modest contribution to external needs although it is expected the Borough will derive some benefit from companies unable to find accommodation in inner Leicester and seeking affordable options in peripheral locations. xi) In terms of competition, the Borough sits in the shadow of Leicester City Centre but moving forward the major development proposals of Blaby and Charnwood are likely to have a growing impact. Major logistics facilities are under development, or expansion, in North West Leicestershire and Harborough. However, as the Borough has little large scale warehousing it does not compete in the regional/national storage and distribution market with these locations. Employment Land Supply and Need xii) The existing employment land supply is 3.35 ha. Two further future sources of employment land have also been identified, totalling 5.17 ha, including the second phase of the Wigston Direction for Growth and the re-use of the Borough of Oadby and Wigston Water Treatment Plant, Oadby. The maximum land supply total is thus 8.52 ha. Undeveloped employment land and Employment Areas are shown in Figure ES1, overleaf. Wigston Direction for Growth xiii) Evidence is that demand and need exists for a full allocation of 5 ha at the Wigston Direction for Growth to 2031. Justifications for this are: • Justification One: The Overall Strength of Industrial Demand – Nationally, sub- regionally and locally there is strong unmet demand for mid-sized industrial premises, the use most likely to locate on the Wigston Direction for Growth, against supply O26(e)/Final Report/October 2017/BE Group 3 Employment Land and Premises Study Oadby and Wigston Borough Council • Justification Two: The Need for Larger Business Space/Freehold Options – Strong local need for units of more than 500 sqm each, with large business requirements extending up to 5,000 sqm each. Strong demand for freehold units, both locally and across the Leicester Conurbation • Justification Three: Local Supply Shortages – Against this demand current supply is limited to seven currently available buildings. Space is generally of moderate quality with little freehold availability.
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