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Wyre Forest Employment Land Review Update Final Report

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Wyre Forest Employment Land Review Update Final Report Wyre Forest Employment Land Review Update Final Report Wyre Forest District Council 31 October 2018 16540584v216540584v1 © 2018 Nathaniel Lichfield & Partners Ltd, trading as Lichfields. All Rights Reserved. Registered in England, no. 2778116. 14 Regent’s Wharf, All Saints Street, London N1 9RL Formatted for double sided printing. Plans based upon Ordnance Survey mapping with the permission of Her Majesty’s Stationery Office. © Crown Copyright reserved. Licence number AL50684A 41581/03/MW/KN 16540584v2 16540584v216540584v1 Wyre Forest Employment Land Review Update : Final Report Executive Summary Lichfields was appointed by Wyre Forest District Council [WFDC] to undertake an Employment Land Review Update [ELR] for the District in June 2018. WFDC is preparing a new Local Plan for the next plan period 2016 to 2036 and is therefore reviewing its existing employment land evidence on the supply and demand of employment land in the District. The ELR Update will form a key part of the evidence base for the emerging Local Plan. The emerging Local Plan will replace WFDC’s Core Strategy (Adopted 2010). The ELR Update is designed to follow the requirements set out in the revised National Planning Policy Framework and former Planning Practice Guidance with regards to planning for economic development needs. Both quantitative and qualitative methods have been used to assess the need for, and supply of, employment land. This involved analysis of economic, demographic and commercial property market data, and consultation with a range of stakeholders including commercial agents, economic development and business organisations, and a survey of local businesses. This ELR Update solely considers the land and floorspace implications for: B1a/b business space (offices/ research & development); B1c/B2 Light/General Industrial; and B8 Storage or Distribution (wholesale warehouses, distribution centres). Economic Context The local economy of Wyre Forest District has seen substantial levels of restructuring over the past 40 years or so, away from the traditional carpet manufacturing base for which the area was internationally renowned, towards a more service-orientated economy, in particular logistics and distribution. However, the District is relatively remote from the strategic motorway network and larger conurbations contributing to a lack of strategic inward investment in new office developments in District. Since 2012, new industrial developments have been aided by the introduction of WFDC’s Local Development Order [LDO] within the South Kidderminster Enterprise Park [SKEP]. Wyre Forest District is characterised by higher economic activity rates, lower unemployment rates and a higher rate of self-employment relative to regional and national averages. However, the District has a relatively low qualified workforce, that on average, earn less than their counterparts across the region and the country. Wyre Forest District is a net exporter of labour, with a net total of 8,980 out-commuters according to the 2011 Census. Very strong commuting relationships exist between Wyre Forest District and a number of nearby local authorities such as Birmingham, Bromsgrove, Dudley, Worcester and Wychavon. Based on the former Practice Guidance’s methodology for defining Functional Market Areas [FEMA], Wyre Forest District can be described as self-contained FEMA. Employment Space Wyre Forest District’s employment space is still dominated by industrial uses which account for around 90% of total employment floorspace. Nonetheless, the level of industrial stock in Wyre Forest District has been declining for a number of years. In contrast, the amount of office floorspace in Wyre Forest District had increased by 44.5% to approximately 80,000 sqm over a 15-year period. Overall, Wyre Forest District’s industrial market, whilst suffering from some of the same problems as the office market (characterised by stock which tends to be older and is not always suitable for the needs of modern businesses), has recently seen an increase in inward investment. This is particularly within the advanced manufacturing companies, but has also been helped along by the streamlined planning process the South Kidderminster Enterprise Park’s LDO. 16540584v2 Wyre Forest Employment Land Review Update : Final Report The vast majority of B-class completions in Wyre Forest District over recent years have consisted of industrial units. In summary, over the period 2005/2006 – 2017/2018, a total of 18.96 ha of employment land was developed at a rate of 1.54 ha a year. Following the recession there has been a drop in the rates of B-class development across the board. Wyre Forest District has seen recent losses of B-class employment land largely due to permitted development rights [PDR]. A total of 18.32 ha of B-Class employment land has been lost across the District over the period 2005/06 – 2017/18, which averages 1.41 ha a year. The net development rates have been positive over the period examined (0.13 ha per annum) – driven in part by the South Kidderminster LDO. Commercial Property Market Wyre Forest District’s commercial property market is relatively localised and, notwithstanding some very large logistics employers, remains heavily reliant on a large base of SMEs and existing occupier churn. From a commercial property market perspective, the FEMA does not currently extend far beyond the boundaries of Wyre Forest District, although there could be an opportunity to broaden this if a strategy was put in place to pro-actively target and attract business requirements from further afield such as increasing the locations within the District that benefit from LDOs. Commercial agents highlighted the need for high quality industrial premises which are suitable for the needs of modern businesses, located on strategic A-road or mainline train routes. These need to offer flexibility, both in terms of the uses such premises can be harnessed for and with flexible terms of contract. Review of Employment Site Portfolio A total of 23 allocated and non-allocated existing employment sites were assessed as part of the study covering 347.95 ha (gross) of land. Following the site assessments, 23 allocated and non-allocated existing employment sites are recommended to be included in the District’s employment land supply, with a net developable area of 17.32 ha. This takes into account that two sites are recommended to be released from employment use. Future Requirement of Employment Space Five scenarios of future employment space were considered for Wyre Forest District. The scenarios based upon the future demand for labour harnessed three sets of employment projections – Experian, which projects employment growth over the period 2016-2036 of 1,100 jobs in Wyre Forest District. A Policy-On scenario also factored in the Experian job growth figures over the emerging Local Plan Period in key growth sectors. These key growth sectors are based on discussions with WFDC Officers, and making reference to the LEP Target Growth Sectors for both LEPs that Wyre Forest falls within (Worcestershire LEP and GBSLEP). Labour supply scenarios were calculated based on the outputs of Wyre Forest District’s emerging SHMA (based on a dwelling target of 276 dwellings per annum), and a past take up scenario considered providing for a similar level of development as had occurred in the past. For Wyre Forest District, 28.54 ha (based on Scenario 4: Labour Supply Scenario – Dwelling-Led) was identified as being required over the 20-year plan period to 2036 of which 4.00 ha relates to office land, and between 24.54 ha relates to industrial/warehousing land. It was recommended that the current portfolio of land should be rebalanced to deallocate around two current employment sites, leaving around 17.32 ha (net). This would leave an identified shortfall of 11.22 ha of B-Class employment land across Wyre Forest District. Demand / Supply Balance WFDC’s existing employment land supply of 17.32 ha is insufficient to meet the estimated requirement of 29 ha over the Local Plan period to 2036. Consequently, three potential sites were assessed for their suitability 16540584v2 Wyre Forest Employment Land Review Update : Final Report to accommodate B-Class employment uses. All three sites are recommended to be allocated for B-Class employment use or mixed-use development with a component of B-Class use, with a combined net developable area of 10.23 ha. One of the sites, Lea Castle Hospital Phase 2, is expected to accommodate some significant employment B1 and potentially B2 needs, whilst the other sites are likely to appeal to a range of B2/B8 uses. Taking into account the recommended gross employment land supply of 347.95 ha (with a net developable area of 17.32ha) and the recommended allocations of two new B-Class and one mixed use sites with a combined net developable area of 10.23 ha, the District has a recommended employment land portfolio of 27.55ha. 16540584v2 Wyre Forest Employment Land Review Update : Final Report Contents 1.0 Introduction 1 Scope 1 Methodology 2 Report Structure 4 2.0 Policy Context 5 Introduction 5 National Planning Policy Framework (July 2018) 5 Planning Practice Guidance 7 Local Planning Policy 9 Background Economic Studies 11 3.0 Economic Context 14 Overview 14 Economic Conditions and Trends 15 Functional Economic Market Area 26 4.0 Overview of B-Class Employment Space 35 Introduction 35 Employment Space 35 Development Rates 36 Conclusions 38 SWOT Analysis 38 5.0 Commercial Property Market 40 Conclusions 46 6.0 Review
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