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Employment Land Study November 2012 on Behalf of Frome Town Council

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Employment Land Study November 2012 on Behalf of Frome Town Council Employment Land Study November 2012 on behalf of Frome Town Council Prepared by PJK Chartered Surveyors and Mark Brunsdon Property Consultant CONTENTS PAGE 1. Executive Summary ......................................................................................................................... 1 2. Introduction .................................................................................................................................... 2 3. Socio economic and demographic profile ...................................................................................... 3 4. Property Market .............................................................................................................................. 4 5. Consultations .................................................................................................................................. 7 6. Land Need Forecasts ..................................................................................................................... 13 7. Employment Land ......................................................................................................................... 24 8. Recommendations ........................................................................................................................ 34 Appendices 1. Sources of Information 2. List of Figures 3. Consultees 4. Community Infrastructure Levy 5. Flood Risk map 6. Interim Employment Land Policy 7. SWOT analyses for existing 25 employment sites 8. Frome office Supply (availability – Nov 2012) 9. Frome Industrial Supply (availability – Nov 2012) 10. Take up rates – sub regional Employment Land Study - November 2012 – Frome Town Council 1. Executive Summary Frome has a total employment premises supply1 of approximately 172,000m2. As at November 2012, 7477m2 was available representing 4% of total supply. Current supply of available offices represents 2.64 years supply based on average annual take up. Current supply of available industrial/warehouse accommodation represents less than one year’s supply based on average annual take up. Commerce Park and Marston Estate account for 78% of total land utilised for employment use. There are 10.6 ha of available land at Commerce Park and 0.42 ha allocated at Marston Trading Estate. Based on anticipated take up requirements we consider that one hectare of new employment land per annum should be provided over the plan period which therefore requires an additional 5 ha which we recommend is allocated at Marston/Wessex Fields. Infrastructure costs are likely to make new “Greenfield sites” unviable in the current commercial property market and emphasis should be towards supporting vitality and growth of existing key employment sites In order to facilitate economic growth it is important to have a range of employment space available including allocated and serviced employment land for bespoke requirements. There is provision for up to 3,400 m2 of office allocation in the proposed Saxonvale redevelopment but such space is reliant on the delivery of a comprehensive regeneration of this area with inherent uncertainty. There are 25 sites providing over 77 ha of existing employment land, of which 19 sites accounting for 11.1 ha are currently at some risk of being lost to alternative uses during the plan period. Consistent with the UK property market, speculative supply of new-build space ceased in 2008/9 as a consequence of the economic crisis. In the absence of development of new stock there is significant space available in nearby towns of Westbury, Warminster and Trowbridge capable of accommodating future demand as economy recovers. 1 Excluding rural and village locations 1 Employment Land Study - November 2012 – Frome Town Council Local businesses are proud to be based in Frome but regard investment in public transport should be a fundamental priority. There are pre application proposals to redevelop the Butler Tanner and Dennis site for 100 – 150 houses and 4,000 m2 of employment. The illustrative masterplan does not allow for the retention of the existing printing operations which employ over 100 staff. We recommend that the applicants are encouraged to revise their proposals and enter into negotiations with Butler Tanner and Dennis who occupy more space than they require, to contract within the site retaining the premises off Station Approach. We understand that Butler Tanner and Dennis are unable to relocate off site for operational and financial reasons. 2. Introduction 2.1 PJK Chartered Surveyors and Mark Brunsdon Property Consultant have been appointed by Frome Town Council to undertake a study which responds to the following brief: (a) Provide a brief overview of future demand for industrial premises in Frome based existing studies, data sources and your own knowledge of the local market. (b) Undertake a SWOT analysis of a range of existing B1, B2 and B8 employment sites in Frome, approximately 25 sites (c) Present conclusions regarding the feasibility of retention of those sites and/or conversion of the buildings to enable continued employment use (not just B1 light industrial, B2 and B8, but also other B1 uses) in the period to 2028. This should be in the light of the SWOT analysis and projected trends in terms of the demand for such sites/buildings. (d) Assess whether Marston Trading Estate and/or Commerce Park are capable of being expanded to help meet the need for a further 4.7 ha. of land in Frome and present recommendations. 2.2 This report assesses the supply, need and demand for employment land and premises (Use Class B, B2 and B8) in the Frome area. 2.3 It has been commissioned to provide evidence to underpin and inform the proposed Frome Neighbourhood Plan, which the Council is currently preparing. This, in conjunction with Mendip District Council’s Core Strategy and emerging Local Development Framework (LDF) (hereinafter referred to as the Emerging Local Plan), will replace the existing Local Plan, and will cover the period to 2028. 2.4 At the time of writing Mendip District Council was understood to be close to publishing its draft Local Plan 2012 - 2028 but the analysis of the individual sites has 2 Employment Land Study - November 2012 – Frome Town Council been based on the prevailing Local Plan in the absence of the new Local Plan. Some of the Planning Policy commentary in relation to individual sites may therefore be superseded by the Emerging Local Plan in due course. 2.5 Although this report contains suggestions of sites that may be able to assist in meeting the identified shortfall in employment land provision, the actual site selection will identified be through the Emerging Local Plan and Neighbourhood Plan process. The base date for the majority of the market data is 1st November 2012 unless stated otherwise. 2.6 We have recognised the need to consult key stakeholders within the local community as part of the Neighbourhood Plan process, and this has been reflected in our methodology. 2.7 A number of different research methods have been used in the compilation of data for this study. They have included site visits, face-to-face and telephone interviews with property market stakeholders such as developers, investors and their agents. Consultation has also been undertaken with public sector stakeholders and local business owners and major employers. 2.8 A full list of the consultees is included in Appendix 3. 3. Socio economic and demographic profile The population of Frome is approximately 24,125 with an age profile which broadly reflects the UK average save that there is an under representation of 20 – 29 year olds. This may be a consequence of this age group moving out of the district to higher education institutions and finding work in larger urban centres. 2001 Census Data - Population by Age Age (%) Urban Area District GB 0-04 6.4 5.7 5.9 05-09 6.4 6.2 6.3 10-19 13.9 14.0 12.8 20-29 10.8 9.1 12.6 30-44 23.3 21.7 22.6 45-59 19.9 21.0 19.0 60-64 4.4 5.1 4.9 65-74 7.5 8.7 8.4 75 and over 7.3 8.5 7.5 All Ages 24,171.0 103,869 57,103,927 3 Employment Land Study - November 2012 – Frome Town Council The socio economic profile shows Frome to have 20% of its labour in skilled manual work compared with 15% in the UK overall reflecting the town’s strong industrial base. The corollary is that the percentage of workforce in the managerial and professional grouping is lower than the UK as a whole. Fig 1 - % unemployed 2003 - 20112 In terms of unemployment Frome has generally performed better than the UK overall, but saw a blip in unemployment levels during 2008 to 2010 but unlike the UK that continued to climb to over 5% by 2011, Frome saw levels fall back to 2% by the end of the year compared with 7.5%. 4. Property Market 4.1 Market Commentary General The UK Commercial property market has, outside of London, been in the doldrums for the last four years since the onset of the global economic crisis and the resulting credit crunch. Company failures and weakening demand has resulted in an oversupply of commercial property stock in most sectors which has had a downward effect on property values and rentals. The imposition of Empty Property Rates has contributed to the dearth of any speculative development and reduced values have eliminated any margin over and above build costs in most areas outside of prime commercial centres. The ongoing lack of liquidity in the commercial lending market, despite banks’ protestations to the contrary, has meant that even well let development opportunities have been difficult to fund in the
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