Tampere Travel and Service Centre Commercial Analysis
10 September, 2015 Contents
1. Introduction COMMISSIONED BY: City of Tampere 2. Starting points The Finnish Transport Agency – “The "ReConnecting Tampere"” competition proposal Senate Properties VR‐Group Ltd 3. Identifying opportunities AUTHORS: – Accessibility of the area Realprojekti Oy – Connection to the city centre and the rest of the city Markku Hietala, Managing Director Olli Kovanen, Consultant – The competitive situation Saku Järvinen, Consultant – Population, workplaces and purchasing power Jori Heinonen, Analyst Lauri Jokela, Analyst – Outlook of the retail and office market Lotta Kujala, Analyst – The real estate market in Tampere Email: [email protected] – The commercial role of the travel and service centre 10 September, 2015
4. Development potential of the travel and service centre Translated into English by Translatinki Oy – Analyses and comparisons 5. Conclusions, recommendations, and grounds for further planning
2 1 Introduction
This analysis aims to help understand the construction potential offered by the Tampere station area. In addition to the “"ReConnecting Tampere"” competition proposal that forms the basis of this work, the necessary analyses, background materials, and statistical information have been used to provide an understanding of the role that the travel and service centre will have in the development of Tampere’s city centre structure over the coming years. The building production volume of the various space types that are permitted in the project area by the property market were analysed based on the role of the travel and service centre, various surveys, and statistical and historical data. The assessment takes account of the Ratina Shopping Centre and the planned multifunctional arena. Changes in the background assumptions open up opportunities for different solutions for e.g. phasing Source: Design Contest for the Tampere Travel and Service Centre, 2014, City of Tampere of the projects.
3 Starting points
1. Introduction
2. Starting points
3. Identifying the opportunities
4. Development potential of the travel and service centre
5. Conclusions, recommendations, and grounds for further planning
4 Starting points: Extracts from the "ReConnecting Tampere" competition proposal
Extracts from: "ReConnecting Tampere". TAMPERE TRAVEL & SERVICE CENTRE DESIGN REPORT 2014. Various new functions that increase customer flows: •Over 20 million travellers and commuters will use Tampere travel and service centre annually. •The new urban heart ‐ an elevated plaza on top of the Centre ‐ will form one of the most important public spaces in Tampere in the future. The plaza will be a covered public space, attractive in the spring, summer, fall and winter. •Multiple restaurants and cafes, a cinema and a sports centre will provide multiple options for travellers to take a break from their journey. •New flexible office spaces and high‐quality housing located around the new public plaza will offer local citizens an opportunity to work and live right in the new pulsing heart of Tampere. •Transit tunnel where busy travellers rush to catch their trams or check‐in to their flights. •The new bus terminal will be located in the current Pakkahuone Square in the same level with the train platforms. •The various cafes, galleries and shops together with flows of people give the place a sense of positive buzz. Restaurants and cultural activities enrich the urban atmosphere. •Small pavilion cafes spread around the plaza during summer days. Information and service kiosks help busy travellers in exploring the city or just getting information on their train or flight connection. •In the southern area, which is located in the crossroad between Tampere Hall Congress and Concert Centre and the city, there will be a sports hybrid that locates a variety of activities, ranging from badminton to wall climbing. •A new health centre and a 6,000m2 swimming hall will be located under the north side of the park where it slopes up to meet the deck level.
5 Starting points: Extracts from the "ReConnecting Tampere" competition proposal
Extracts from: "ReConnecting Tampere". TAMPERE TRAVEL & SERVICE CENTRE DESIGN REPORT 2014. Development: •The new Deck can accommodate up to 200,000 m2 of new housing, office and retail spaces •The proposal also includes densification and diversification plans for the Tulli and Tammela districts, with up to 100,000 m2 of new development •Critical parts of the implementation concern new housing. There is a risk of building an excessively high volume of housing within a short period, which could result in oversupply on the housing market. The "ReConnecting Tampere" proposal estimates that the leisure and sport spaces will be less critical to the overall implementation schedule than housing.
6 Starting points: "ReConnecting Tampere"
The master plan builds on the current city structure by extending the grid structure across the railway yard. This will connect the two sides, which are currently separated by the railway tracks. The master plan for the "ReConnecting Tampere" competition proposal includes the following six strategies for developing the city structure.
STRATEGY 1 STRATEGY 2 STRATEGY 3 UNIFY AND CONNECT –”The Camouflage” A NEW FRONTSIDE –”THE ARCADE” THE INTERMODAL TRANSPORTATION HUB –THE HEART OF THE CITY
STRATEGY 4 STRATEGY 5 STRATEGY 6 ”EASE OF TRAVEL” – CONNECTING LOCAL, REGIONAL AND NATIONAL DIVERSIFY & ENHANCE – REVITALIZE THE NEIGHBOURHOODS THE GREEN LUNG IN THE CITY – TAMPERE CENTRAL PARK MODES OF TRANSPORTATION
"ReConnecting Tampere". TAMPERE TRAVEL & SERVICE CENTRE DESIGN REPORT 2014. 7 Identifying the opportunities
1. Introduction
2. Starting points
3. Identifying the opportunities
4. Development potential of the travel and service centre
5. Conclusions, recommendations, and grounds for further planning
8 Accessibility
The project area enjoys a advantaged position in the centre of Tampere, at the eastern end of Hämeenkatu Street with excellent connections. 5 5min min 1010 minmin There are nearly 64,000 residents and around 63,000 1515 min min workplaces within a five‐minute drive of the area, a radius which covers most of the Tampere city centre. In addition, Lielahti district is just a ten‐minute drive away, and Pirkkala district a 15‐minute drive away. This large catchment area in a central location facilitates the dense construction that is typical of city centres.
9 Public transport
Thanks to its central location, public transport connections to and from the area are excellent. The construction of the travel centre in the area will make public transport even more important. Both local and long‐distance connections are excellent.
Mode of transport Tampere region survey 1969 Public transport routes, summer 2015 (City of Tampere) Tampere Mode of transport survey 1996 (TALLI 2000) Surrounding municipalities Trips by residents in Tampere Trips to the inner city Other Other By bicycle Tampere By bicycle Mode of transport By car By car survey 2005 (TASE 2025) By bus By bus Surrounding municipalities
Tampere
Mode of transport On foot On foot survey 2012 Surrounding municipalities
By car, as driver By car, as passenger On foot Figure 21. Modes of transport of residents in Tampere By bicycle By bus Other means of transport
Figure 22. Changes in the transport habits in Tampere between 1969 Source: The Local Master Plan for the Inner City 2014. and 2012 (November and December, residents of 14 years old or older) Preliminary traffic network development goals within the Tampere inner city area 2014 10 Residents and Residents 31.12.2013 workplaces
Currently there are over 6,000 residents and around 13,000 workplaces within a 500‐metre radius of the central square, near the project area. The project area is located in the middle of a dense residential and working district in Tampere city centre, offering excellent opportunities for a wide range of functions. Workplaces 31.12.2013
Source: Statistics Finland, Grid database
11 Table 12. Population projection for Tampere region in 2040 (September 2014). The projection for 2025 is based on the assumption that the demographic structure will develop evenly throughout the inspection period Population projection
The population of the entire Tampere region is growing rapidly, creating demand for new premises. Based on the population projection for Tampere Region, the population of the region will increase by up to 118,000 residents between 2012 and 2040. This is an increase of over 30% from the 2012 level. Of this growth, around half will be within the city of Tampere, increasing the city’s population by around 27%. This rapid growth brings added pressure to increase additional construction within the city centre, and to extend the city centre area. As such, expanding the travel and service centre is a logical part of the solution to this problem.
Source: Tampere Region Land Use Plan 2040. Tampere Region 12 service network 2040. Regional Board 19 January 2015 The commercial position of Tampere city centre
TheTravelandServiceCentreareais adjacent to the city’s commercial centre. It is the most natural direction of growth, making it the most attractive area for new construction in the region. When completed, the area will connect the two sides that are currently separated by the railway tracks, and will provide more city centre space above the tracks. TheTravelandServiceCentrewill strengthen the position of the eastern side of the Tammerkoski Bridge as the city’s commercial heart.
Map: The Strategic Master Plan for Tampere City Centre. Assessment of the commercial impacts 19 March 2014 (City of Tampere & Santasalo)
13 Commercial projects in the city centre: Ratina Shopping Centre
P1: Parking and entrance from Suvantokatu and Tampereen Upper level: Fashion, leisure, home, chidren, cafés • Approx. 53,000 m² of commercial and service premises valtatie • Over 150 shops • Approx. 1,250 parking spaces • Estimated completion: spring 2018
• Builder: Sponda Plc Street level: Fashion, beauty, accessories, restaurants, cafés P2: Parking, around 1 250 parking spaces altogether • Ratina is Tampere’s largest‐ever land sale
Square level: Groceries, restaurants, specialized stores, and other services
14 City centre commercial projects: The Deck and the Arena
• Tampere City Council approved the local detailed plan on 13 June 2011. • The local detailed plan facilitates the construction of the Deck over the railway area, on top of which a multifunctional arena and mixed blocks of housing, accommodation, offices, and retail premises will be constructed. • The maximum volume of construction permitted by the plan is 119,200 floor area sqm. The plan includes: – A multifunctional arena: 48,000 floor area sqm, of which 12,000 floor area sqm at most can be used for stores, restaurants, cafés or sports premises – retail premises (excluding the Arena): 2,166 – 12,380 floor area sqm – Office space: max. 54,740 floor area sqm – Housing: 13,220 – 38,697 floor area sqm – Accommodation services: max. 38,990 floor area sqm Blocks A block for city centre activities, which may include retail, accomodation services, residential and office buildings in the specified ratio. Covering of spaces between buildings is permitted. Construction must be integrated into the cityscape, and must be So far, two teams (led by Lemminkäinen and SRV) have submitted presented in the construction plans. applications. The Council expects tenders from both teams by the end of Residential block 2015, and will select the contractor in early 2016. The arena consortium will Block for retail and office buildings and buildings designed for cultural and sports activities develop the multifunctional arena into an investment target between the years 2015 and 2016. The consortium will make the decision on the construction of the multifunctional arena by the end of 2016. The multifunctional arena could be completed by the end of 2020 at the earliest. (NCC withdrew from the project in 2014.)
15 Hotels in Tampere
The central location of the travel and service centre makes it an excellent location for a new hotel. Tampere’s hotel occupancy rate is currently around 50%, which is slightly below previous years. Of the very few new hotel projects that are currently being planned or publicly discussed, the Marriott hotel (170 rooms) would stand alongside Tampere Hall. Torni Hotel would be built in the Travel and Service Centre area. New hotels open in Tampere at a two‐ to three‐ year intervals on average. The current hotel capacity seems to be sufficient for today’s needs, but as the city centre expands and becomes more active, additional hotel capacity may be needed.
Source: Statistics Finland 16 Hotels in Tampere The bigger the red dot, the bigger the hotel (number of rooms)
17 Parking in the city centre
There are already several parking facilities around the travel and service centre, some of which are right beside it. Parking is a significant factor in terms of costs and functionality of the area. In designing an overall parking solution for the area, the existing parking facilities and their use must be carefully considered.
18 Rent levels of retail premises in Tampere
In terms of retail premises, the Travel and Service Centre enjoys a prime location at the end of Hämeenkatu Street, which is the main shopping street in Tampere. The gross rental rates in the centre vary greatly, from 22 to 70 euros per m2, depending on the location. The highest rents are charged on Hämeenkatu Street.
19 Source: Datscha Rent levels of office premises in Tampere
In terms of the office market, the Travel and Service Centre at the eastern end of Hämeenkatu Street is excellently situated. Asemakeskus partly extends to the most valuable office locations in the city centre, where gross rents vary between 12 and 19.5 €/m2 per month. Largest part of the Asemakeskus is located in the secondary zone around the city centre, where the rents per m2 are, on average, around €1 lower. The office rental rate is significantly lower at the northern end of the project area. The vacancy rate of office premises is relatively high in the city centre, and especially right outside the city centre. This may slightly slow down the construction of new premises.
Source: Datscha
20 Residential rent levels in Tampere
The location and yield rate for residential construction are relatively good in Tampere. One strong sign of this is the almost non‐existent vacancy rate in the city centre. The travel and service centre can be considered an especially successful and attractive location for housing production.
Source: Datscha 21 Development potential in the travel and service centre
1. Introduction
2. Starting points
3. Identifying the opportunities
4. Development potential of the travel and service centre
5. Conclusions, recommendations, and grounds for further planning
22 Comments and remarks on the competition proposal as the basis for planning
Size of the competition proposal • The total size of the competition proposal is 200,500 floor area sqm, of which: – retail premises account for 43,394 floor area sqm – Offices account for 44,400 floor area sqm – Sports premises account for 10,100 floor area sqm – Housing accounts for 102,300 floor area sqm • The competition proposal also includes an alternative scenario whereby the total size would be 250,000 floor area sqm (taller construction). • The total size of the competition proposal, i.e. 200,000 to 250,000 floor area sqm, can be considered the area’s maximum technically feasible size. To cover the expenses however, the efficiency rate of the deck structure must be very high in terms of construction costs. • The total volume target presented in the competition programme was 100,000–120,000 floor area sqm. The other three competition entries did not include structures above the railway tracks, and so their total size was much lower. New buildings were planned mainly on the southern side of the railway station and included tower blocks, a new travel centre for buses on the other side of the tracks opposite to the railway station, and new buildings on the eastern side of the tracks in the north.
23 Challenges posed by the plan in terms of retail premises
• The volume of retail premises is high, but they have been located in small units on the street level within a wide area beyond the main pedestrian flows. A great number of secondary retail premises will be created that are difficult to manage and that do not support each other. If the retail premises are implemented as individual street‐level premises, they could become a cost burden to the other premises, and consequently increase the price of building these other premises. • Significant differences in elevation are another major challenge. The deck structure located high above ground divides the city, and the new StationSquareontopofthedeckisonthesamelevel with the customer flows in the north‐south axis only. This means that no natural access routes between the city centre and the Tulli district can be created on the deck. If constructed, the deck and the retail premises on it would be on the third‐floor level when walking from Hämeenkatu Street on the city centre side to Tulli through the railway station. (The railway station and the tunnel are on the first floor at street level, and the railway tracks are on the second floor.) • The preservation of the old railway station building restricts the planning. • The areas on the northern side of the railway station are not favorable to shops and services.
24 Background data for the proposed size: Construction of retail premises in Tampere, 2000 – 2014
• Between the years 2000 and 2014, a total of Construction of retail premises in Tampere 2000–2014 (floor area) 358,000 floor area sqm of retail premises were constructed in Tampere Granted retail building permits Initiated retail building projects Average annual building rate: 23,800 floor Completed retail buildings area sqm
• Between 2009 and 2014, the volume of completed retail premises was significantly above average (68,000 floor area sqm and 57,000 floor area sqm)
• At its lowest, the annual completion volume is approx. 2,100 – 3,500 floor area sqm
• According to Statistics Finland, the present commercial premise stock in Tampere (31 Annual average: December 2014) is c. 1,164,000 floor area sqm 23 800 floor area sqm
Source: KTI, Statistics Finland –all of Tampere
25 Background data for the proposed size: Demand‐based need for additional retail premises by 2040
• Based on the Service Network of the Tampere Region 2040 Table 23. The development potential of retail stores in Tampere central area in 2014. Tampere is divided into service areas. Need for additional retail space Total development potential survey (Tampere Region Land Use Plan 2040, 19 January 2015), Floor area sqm, 2012 the estimated total volume of retail premises in Tampere is 2012‐2040, floor sqm 2040 Grocery and Big box and In total Grocery and Big box and In total Grocery and Big box and In total 5,000 floor area sqm (2012) specialty car stores specialty car stores specialty car stores retailers retailers retailers – City centre service area: 385,000 floor area sqm (45%) – Other areas: 470,000 floor area sqm (55%)
• The survey estimated that the combined need for new additional retail premises in Tampere will be c. 629,000 floor area sqm by 2040 Average annual building rate: 22,500 floor area sqm • The need for additional retail premises is in the survey indicated separately for each service area in Tampere: – Increase in the city centre service area: 248,000 floor area sqm (39%) Average annual increase: 8,900 floor area sqm – Total increase in other areas: 381,000 floor area sqm (61% Source: The service network of the Tampere Region 2040, increase) Regional Board 19 January 2015 Average annual increase: 13,600 floor area sqm
• The calculations of the service network survey separately consider each municipality of the entire Tampere Region, and are based on the population projections and purchase power development in the municipalities and the transfer of purchase power and strengthening of city centre areas. The area calculations have also been presented for each regional sector. 26 Background data for the proposed size: Office construction in Tampere in 2000 – 2014
• From 2000 through 2014, a total of 323,000 floor area sqm of office space was built in Construction of office premises in Tampere 2000–2014 (floor area) Tampere Granted office building permits Initiated office building projects Annual average: 21,500 floor area sqm Completed office buildings • The main peak in building was in 2000 (52,500 floor area sqm), followed by a downward trend
• The lowest construction volume was 180 floor area sqm (2007); 2014 volume was only 700 floor area sqm
• According to Statistics Finland, the present office Annual average: premise stock in Tampere (31 December 2014) is 21 519 floor area sqm around 1,048,700 floor area sqm
Source: KTI, Statistics Finland, all of Tampere
27 Background data for the proposed size: Residential construction in Tampere in 2000‐2014
• From 2000 through 2014, a total of around 24,800 dwellings were built in Tampere Construction of residential buildings in Tampere 2000–2014 (# of apartments)
• Average size: 80 floor area sqm/dwelling, Granted residential building permits a total of around 1.98 million floor area sqm Initiated residential building projects Annual average: 1,655 dwellings, Completed residential buildings c. 132,400 floor area sqm
• According to Statistics Finland, the present housing stock in Tampere (31 December 2014) is around 10.7 million floor area sqm Annual average: (average size: 83 m2/dwelling) 1 655 apartments – Residential blocks: around 2.5 million floor area sqm number of apartments: 94,218 on average: 72 floor area sqm /apartment – Terraced and linked houses: 1.3 million floor area sqm number of dwellings: 13,331 on average: 97 floor area sqm /dwelling – Detached houses: 2.6 million floor area sqm number of dwellings: 18,746 on average: 139 floor area sqm /dwelling Source: KTI, Statistics Finland, all of Tampere
28 Development of the Travel and Service Centre area in relation to the total volume of construction
• The Table shows the future construction potential in the Travel and Note! Other projects in the area are not included in the Service area in relation to the average construction volume of various Table. The percentage indicates only the proportion of the total volume of new area that might be built within space types in recent years, and the resulting trend forecast. the Travel and Service Centre area. • Based on the forecasts, of all the space types proposed in the competition proposal, dwellings account for the smallest share of the total volume of the city’s total new construction. The market for retail premises and office space is much more saturated. The potential for new retail premises in the Travel and Service Centre area in relation to the need for additional premises in the Tampere city centre and to other retail premises projects
Ratina
Arena and Deck
• The new projects listed in the Table have been observed Note! The city centre area covers the NOTE! Any other projects implemented in the area will add to the total production volume (e.g. smaller service area of the Tampere city centre! projects on the street level and other yet unknown projects) • The projects exclude businesses with a high space requirement and car sales, and therefore the assessment only covers the space needs of operators in the grocery and specialised retail sectors. • The distribution of the additional needs between the city centre and the rest of Tampere is based on the calculations made as part of the Tampere Region Service Network 2040 for different parts of Tampere. • In the Figure, the cumulative need for additional space is based on the demand‐based estimate in accordance with the Tampere Region Service Network 2040 survey. 30 The potential for new retail premises in the Travel and Service Centre area in relation to the need for additional premises in all of Tampere and to other retail premise projects
Ratina Arena and Deck
• NOTE: The projects outside the city centre also include projects for businesses with a high space requirement. Note! Covers all of the city of Tampere
31 A comparison of shopping centres
Ratina will significantly increase the supply Shopping Leasable area, # of visitorsSales # of parking sqm/ of retail premises in Tampere. Ratina will centre sqm # of stores in mil. MEUR €/sqm €/visitor spaces parking space be an single business unit in the city Ideapark 91 712 188 7,2 250 2 726 34,7 4 000 23 centre, by far Tampere’s largest, and the Koskikeskus 28 200 94 5,7 125 4 433 22,0 425 66 second largest in the Tampere Region Elo 24 000 62 1,9 48 2 000 25,3 920 26 (right after Ideapark). Duo 11 733 34 4,4 64 5 447 14,6 380 31 Lielahtikeskus 10 485 19 0,8 9 250 42 Based solely on business diversity, it will Tullintori 9 550 37 2,1 20 2 115 9,6 627 15 be difficult for the Travel and Service Centre to compete with Ratina.
32 Parking
• Well‐functioning parking has an important role to the functionality of the whole city centre. • The number of parking spaces at inner‐city shopping centres is lower than in suburban areas. The high volume of grocery trade increases the need for parking spaces. The ideal target volume of parking spaces could be one parking space per 30‐35 m2 or even per 50 m2, if shared parking is well planned and implemented. • In planning the parking facilities for the Travel and Service Centre area, special attention must be paid to multi‐functionality and the use of shared parking. The facilities must serve everyone using the area – shoppers, office and hotel workers, tourists, event‐goers, and residents. Due to the shared parking system, offices can use the same parking spaces as the shopping centre because of differences in peak times. In addition, there must be enough parking spaces for housing. It is vital to create a well‐functioning shared parking system that is open to all. One benefit is that there are always free spaces for residents in the facility, even if all shopping centre spaces are taken. • Both short‐ and long‐term parking spaces will be available. • The shared parking system will be optimised using modern systems. • The need also depends greatly on how parking needs are met, and on how the parking needs of passengers are managed in the surrounding areas.
33 Conclusions, recommendations, and grounds for further planning
1. Introduction
2. Starting points
3. Identifying the opportunities
4. Development potential of the travel and service centre
5. Conclusions, recommendations, and grounds for further planning
34 The commercial role of the travel and service centre
The financial implementation of the shopping and service centre in the Travel and Service Centre requires: • Sufficiently large size –the critical mass to ensure attractiveness (possibly combined with the surrounding structure) • Anchor functions: attractive operators in the grocery and specialised store sector to ensure sufficient customer flow • Mainly specialised stores, cafes, restaurants, and other commercial services suited to the city centre – ensuring sufficiently diverse selection and ability to pay rent • Local services that supplement the traffic centre and serve the passengers and local residents • Distinguishing features (as part of the overall offering): e.g. large units of specialised retail and services, new types of meeting places, a public service cluster • Operational unity of the area, branding, centralised marketing and commercial management. • Linking to the existing and developing offering (in particular the multifunctional arena, Tullintori, hotel)
35 Views on the size and location of retail premises
• In terms of retail premises, the most profitable solution is to centralise most of the premises to one larger commercial entity (similar to a shopping centre). By centralising the retail premises in the area between the Travel and Service Centre and the multifunctional arena, the attractiveness of the entire area would be greatly improved. The size of the possible larger, jointly implemented shopping centre could be 40,000 – 60,000 floor area sqm. • A total of c. 5,000 floor area sqm of stores and services will be built in connection with the railway station/Travel and Service Centre project. • In addition, a total of around 1,000 – 2,000 floor area sqm of complementary ground level retail premises with a good location should be implemented further away from the city centre. • The scheduling principle: the larger shopping centre would require that a great volume of space be built at once, which is unrealistic in the current economic situation. There is a major risk both in implementing the shopping centre only partially, and in building a large number of individual stores.
36 Comparing the winning proposal and the alternative
• Based on the analysis, in the near future there is no market demand for the volume of retail premises envisaged in the competition proposal. Fragmented implementation endangers the chances of success of businesses in the increasingly intensive competitive situation. • If the proposed projects are implemented, the opportunities for more large‐scale retail premises construction will, based on the forecasts, materialise only towards the end of the inspection period, i.e. by 2030. • As the implementation progresses, retail premises to support the service structure should be built in the initial phase also in connection to the transport centre.
37 The amount of proposed construction relative to estimated additional need
38 Floor area and phasing of the construction of the area: an example
• The initial focus must be on residential building, especially on the northern side of the travel and service centre. • Office space should be built in all areas based on demand, with the focus on the areas around the transport centre. • In the beginning, retail premises should be built mainly at the transport centre, with some ground‐level premises on the northern side to provide local services. • Due to the current market situation, a more extensive commercial entity between the Travel and Service Centre and the multifunctional arena cannot be begun until the late 2020s. • The resulting commercial service centre will be diverse, functional, and strong. It will be supported by the transport centre, Arena, hotel, and the service structure of Tullintori.
39 Conclusions
• The excellent central location of the Travel and Service Centre is attractive to all kinds of functions – for retail premises, hotels, offices, housing – giving it a competitive edge over projects implemented outside the city centre. • If implemented as planned, the travel and service centre will meet much of the future need for new construction in the city centre. – The significant increase in the provision of retail premises resulting from the new projects implemented during the Travel and Service Centre project (e.g. Ratina) will saturate the market for some time to come. The share of retail premises planned for the Travel and Service Centre alone is nearly one‐third of the total need for such city centre premises until 2030. – Demand is also uncertain for office premises to cover the volume planned in the competition proposal. This is because the Travel and Service Centre alone would cover over 10% of the total need for additional retail premises in the whole of Tampere until 2030. – For residential construction, the market situation is somewhat better. A total of 100,000 floor area sqm of apartments have been planned in the Travel and Service Centre, accounting for just 5% of the total need for additional housing in all of Tampere until 2030.
The proposed volume of construction in the travel and service centre is not too far above market demand in Tampere, but the competing projects make the implementation schedule very challenging in some respects.
40 Conclusions
• The detailed contents of the retail premises concept and its relative attractiveness must also be considered with respect to the volume of retail premises to be implemented. • Market competition in the coming years is too tough for new large retail premises. – The retail premises at the station must be based on demand and sufficiently high volume. – A limited option is to carefully extend the ground level premises offering in the city centre as the project progresses. – Strengthening and extending the range of ground‐level premises in the city centre is natural in the Travel and Service Centre area. – The customer flows created by the transport centre or the planned additional construction is by far not sufficient to support the planned volume of retail premises. • The feasible volume of additional retail premises construction depends heavily on the volume of competing projects as well as on other supply, the implementation schedule, and quality. • To ensure the feasibility of the project, the cost of making the property fit for construction (the Deck in particular) must be taken into consideration in the targeted total volume.
41 Tasks and goals for further planning
• Specifying the business idea of the area and setting of content targets and applying them to the physical opportunities offered by the area • Defining the preliminary contents and volume targets for each premise type • Block‐specific massing in accordance with the chosen business idea • Outlining and planning the traffic, parking, and servicing solutions • Calculating the financial constraints to be used as a basis for implementation requirements and phasing • Defining the target schedule for zoning and implementation phases • Reaching agreement on the zoning start
42 Tampere 2035 –a strong core of services and experiences
• Comprehensive and effective services are within walking distance, next to excellent public transport services and a sufficient parking network. • The city structure will be a pedestrian and cyclist friendly, safe, interesting, and pleasing entity with a diverse and enjoyable cityscape for all.
Map: The Strategic Master Plan for Tampere City Centre. Assessment of the commercial impacts 19 March 2014 (City of Tampere & Santasalo)
43 Appendix: Types of retail services for planning the business idea
The Figure shows the general model of the nature and role of commercial clusters to be used in further planning. The role of the travel and service centre can vary from a local service centre to a shopping, entertainment, and amusement centre.
44