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Economic Land Use Vision Euston Area Plan

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Economic Land Use Vision Euston Area Plan WorkReportReport in Progress GVA 10 Stratton Street London W1J 8JR Economic Land Use Vision Euston Area Plan London Borough of Camden December 2013 January 2013 gva.co.uk London Borough of Camden Euston Area Economic Vision Prepared By . Christopher Hall .............. Status . Report......................Date July 17, 2013 ................... Reviewed By. Martyn Saunders............ Status . Report......................Date July 19, 2013 ................... Updated By.. Christopher Hall .............. Status . Report......................Date December 23, 2013 For and on behalf of GVA Ltd December 2013 gva.co.uk London Borough of Camden Euston Area Economic Vision Contents Executive Summary.....................................................................................................................2 1. Introduction.....................................................................................................................8 2. The Euston Context.......................................................................................................12 3. Central London Commercial Office Investment Activity and Prospects.................15 4. The Knowledge Economy............................................................................................29 5. Innovation hub models................................................................................................47 6. Land and Space Requirements...................................................................................69 7. The Retail Role...............................................................................................................77 8. Developing Local Skills and Employment..................................................................98 9. Outline Delivery Approach........................................................................................120 10. The Delivery Case.......................................................................................................137 December 2013 gva.co.uk London Borough of Camden Euston Area Economic Vision December 2013 gva.co.uk 1 London Borough of Camden Euston Area Economic Vision Executive Summary The Euston area is strategically located to the immediate north of London’s West End and Bloomsbury. The Euston Plan Area is anchored by Euston railway station, but is also defined by the communities that live within it, the mix of local businesses including the unique character of Drummond Street, and its links to Camden Town. Key assets underpinning the economic vision include: • High value West End and Holborn office markets, • A global centre of the knowledge sector at Bloomsbury and the Euston Road, anchored by businesses as well as UCL, the University of London, UCL Hospital and the Welcome Trust • An international destination for inward investment by next generation corporations, at Kings Cross on one hand and Regents Place on the other; • One of the world's great urban open spaces at Regent's Park; • A high visibility central London gateway location based on national and regional rail assets on the A40/Euston Road corridor. • High value residential neighbourhoods at Bloomsbury, Regents Park, Kentish Town and Camden Town. Euston currently sits at a critical point in its evolution with a range of influences converging to create a major opportunity for change. This includes proposals for a new high speed rail terminal attached to the west of the existing Euston Station, the potential for redevelopment of the existing station, significant commercial office and institutional demand, the delivery of nearby schemes at Regents Place, St. Pancras and Kings Cross and ongoing housing estate renewal. Euston Station is also the only significant piece of Government-owned land in Central London that may undergo change at this scale, which provides the potential to create a new mixed use piece of city that can contribute to the long term value of Camden’s, London’s and the national economy. The HS2 proposals could lead to a higher level of development than originally anticipated in the Euston area by the London Plan. This is based in both new potential over-site development opportunities at a new HS2 station, as well as the catalytic effect it could have on realising redevelopment and new over-site development at the existing Euston Station and as a key catalyst for increasing commercial interest in the wider Euston area through to Somers Town and Camden Town. HS2 would also have significant impacts on communities and the environment around Euston. At the timing of writing Camden Council is opposed to the HS2 project based on December 2013 gva.co.uk 2 London Borough of Camden Euston Area Economic Vision potential negative impacts of the form of development proposed. In the event the project proceeds Camden Council wishes to secure the best deal for local communities and the Borough. Its objectives will be set out in the Euston Area Plan. The Euston Area has substantial assets that underpin the Economic Vision that has been developed to respond to this potential. Key assets include: • A central London location, immediately adjacent to the West End, Bloomsbury and King’s Cross; • High accessibility based in national rail, commuter rail and tube service via multiple lines; • An established employment base and a proven commercial office role; • Anchor higher education, hospital, research and cultural institutions with national and global reach and ongoing development requirements; • Established nearby retail destinations, whether the West End, Drummond Street or Camden Town; • Strongly expressed confidence in Euston as a location for mainstream, central London commercial office development; • Expressed interest in Euston as a location for institutional growth, a knowledge sector cluster and an ‘Innovation Hub’. However, there are a number of barriers to progress in the Euston Area. • A shortage of unconstrained development sites that could accommodate larger commercial office or institutional developments; • The absence of a clear framework for future land use and development that would reduce investor risk; • Physical barriers, particularly north and south across Euston Road and also east – west with St. Pancras King’s Cross; • The absence of a funding structure that could prepare a development framework and foundation the private, institutional and public sectors can respond to. The Economic vision responds directly to these drivers to create a unique proposition that is rooted in the area’s current and future strengths and assets, and also proposing mechanisms for over- coming the identified barriers. It is clear there is a strong future role for Euston as a n atural extension of West End office market based on: • The ongoing ‘migration’ of occupiers out of the core Mayfair area as rents increase and other uses secure floorspace; December 2013 gva.co.uk 3 London Borough of Camden Euston Area Economic Vision • The success of King’s Cross & Regent’s Place in securing significant, high profile occupiers (including significant pre-lets); • The value proposition, offering an unrivalled location with values below the core West End market whilst still sufficient to support development; and • The area’s connectivity, both to the rest of London and regional economic hubs such as Birmingham. Market experience suggests that the key to maximising the opportunity for commercial offices in Euston will be the c reation of a unique identity and vibrancy for the development. Occupier priorities have changed significantly with large corporates seeking to locate in areas with their own character rather than within more ‘standard’ business park type environments. Euston has the potential to accommodate a significant level of demand for office floorspace. A programme that included an average of 10 - 15,000 sqm of new employment floor space per year could be supported. There are considerable demands for knowledge and creative sector spaces from locations immediately around the Euston Area Plan area. The demand comes from teaching, research and practice and includes institutional and private sector interests. The scale of requirements ranges from small workspaces to major departments of internationally recognised institutions. It is recommended that the requirements of the knowledge and creative sectors be incorporated in masterplanning for the Euston Area. This can be part of the economic vision, and also part of realising the type of diverse, mixed-use place that mainstream employers and office occupiers increasingly seek. The range of combined knowledge, science and creative sector possibilities is considerable. However, the above analysis suggests that the very largest scale schemes will be significantly dependent on a single large institution to deliver. At this time, and in the absence of a single large requirement or commitment, it is recommended that masterplanning provide opportunities for 50,-70,000 sqm of knowledge sector space incorporating both private sector and institutional developments across both science and creative sectors should be incorporated in future planning. There is likely to be some overlap between the masterplanning quantities recommended for mainstream commercial office sectors and these floor-areas. The knowledge and creative sectors will also have office and workspace requirements. Of the total commercial development capacity it is likely that around 60% should be considered for ‘office’ development, a further 30% for R&D activities and 10% retail. This would enable December
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