Employment Land Review(ELR) 2018 Glossary Employment Land: Land allocated for business, general industrial and storage/distribution uses as defined by Classes B1, B2 & B8 of the Town and Country Planning (Use Classes) Order 1987 (as amended) or with an extant planning consent for such uses. Employment uses exclude retail, leisure, residential care facilities, mineral extraction and waste disposal. B1a: Offices other than in a use within Class A2; B1b: Research and Development of products and processes; B1c: Light Industry appropriate in a residential area; B2: General Industrial- use for industrial processes other than one falling within class b1 (excluding incineration purposes, chemical treatment or landfill or hazardous waste); B8: Storage or Distribution – including open air storage FTE: Full Time Equivalent. Committed Employment Land: All available land allocated for commercial/industrial employment uses or with extant planning permission for employment use, excluding (a) expansion land, (b) land with empty industrial buildings already in-situ, unless those buildings are time expired, and (c) special sites allocated for specific employment uses. Net Employment Land Requirement: the difference between the likely amount of new employment land required, against the amount of land likely to be lost to non- employment uses over a stated period. Gross Employment Land Requirement: the total amount of land likely to be required for employment uses over a stated period. Margin of choice: the addition of a stated factor to the net land requirement projections to ensure that businesses making locational choices have a degree of flexibility or choice. Gross Internal Floorspace: The entire area inside the external walls of a building and includes corridors, lifts, plant rooms, service accommodation, but excludes internal walls (RICS, Code of Measuring Practice (6th Edition)). Net Internal Floorspace: The internal area of a building including entrance hallway, kitchens and built in units, but excluding toilets, stairways, lifts, corridors and common areas (RICS, Code of Measuring Practice (6th Edition)). Land Immediately Available: Land serviced or capable of being serviced in 12 months. Land Requiring Preparation: Land where major provision of roads and utility services is required, or where major demolition and site remediation is required. 2 Plot Ratio: the ratio between gross floorspace and total site area. Employment Density: average floorspace per worker ratio, usually expressed as square metres per worker. Employment Land Take-up: Take-up is defined as the development or first occupation of a site. Take up occurs at the point at which construction of a building commences (the point at which it can no longer be regarded as an available development site). Where a developer builds out employment premises in separate phases (as opposed to a continuous rolling programme), take-up occurs at the start of each phase. Take-up excludes (a) extensions of existing premises unless they occur on land outside the curtilage of the existing site and (b) changes of use. The extent of take- up typically accords with the area of land that a developer would have to acquire for the purposes of the development. This may not equate to the boundary of a development for the purposes of a planning application. Where buildings are demolished and the site is redeveloped, this constitutes take- up. But where an occupier rebuilds part of his premises with the intention of re- occupying them, the site does not become available to the market, and thus no take-up occurs. Historic Employment land Take-up: The average yearly development of commercial/industrial land for employment uses over the Plan Period. Current Take-up: The average yearly take-up of commercial/industrial land for employment uses over the last 5 years. Restricted Employment Sites: Land in addition to general employment land allocations that is restricted for particular purposes such as airport and port expansion, chemical and steel industry, protecting land for potential rail freight interchanges and sites reserved for major users and inward investment. Implied Supply: An estimate of the number of years that it would take to consume available land at prevailing take-up rates. It is calculated by dividing the amount of available land by the average yearly take-up. Housing Land Availability Assessment (HELAA): The primary function of the HELAA is to identify sites with potential for housing/ employment; assess how much housing/ employment potential the site has; and, assess when the site is likely to be developed. Employment Land Portfolio: The Council’s full supply of identified future employment land. This includes sites allocated through the CSUCP Key Employment areas of Newcastle International Airport, Walker Riverside and allocations within the Urban Core. Co Star: A commercial property database, which provides data on over 400,000 UK commercial property buildings. Data recorded includes space becoming available, let or sold, new tenants moving in, leases expiring, or the building being demolished. 3 Micro-enterprises: HMRC define a micro employer as a business with 9 or fewer employees 4 Preface The Newcastle Employment Land Review (ELR) has four main purposes: • to identify the City’s employment land requirements for the period 2010 – 2030 based on an analysis of economic forecasts, recent trends and policy aspirations; • to assess the quality of the City’s main employment areas for continued use and identify potential new land to meet future requirements. • In doing so, it will provide the evidence base to inform the Development and Allocations Plan (DAP) and support the CSUCP. This Plan will set out the second part of the Council’s Local Plan for growing economic competitiveness and prosperity. It will identify the amount, type and broad locations of new employment land that should be provided to 2030. • This update has been produced to support the 2018 Pre-Submission DAP. The DAP sets out the Council’s planning policies for managing development within Newcastle. It sets out site allocations and designations and supports the strategic policies and growth planned for in the CSUCP which forms part 1 of the Council’s Local Plan. Its purpose is to provide an update on the ELR 2014 which was published in support of the (CSUCP), and sets out an updated portfolio of employment sites for allocation, or retention for B1, B2, & B8 uses. The report provides a focused update covering sites identified in the 2014 ELR and the Housing and Employment Land Availability Assessment (HELAA) call out for sites. It provides an additional level of focussed assessment in addition to the HELAA. The ELR 2018 has been produced in tandem with the HELAA and will be updated regularly. 5 Contents 1. Introduction and Approach 2. Policy Context & Established Evidence Base 3. Economic Context & Prognosis 4. Stakeholder Consultation 5. Property Market Analysis Update 6. Taking Stock of the Existing Situation 7. Creating a Picture of Future Requirements 8. Reviewing our ‘Established Portfolio’ Of Employment Sites 9. Identifying our ‘Portfolio’ to 2030 10. Site Deliverability and Interventions 11. Conclusions & Recommendations 6 : Appendices Appendix 1: Potential New Employment Sites Proforma Appendix 2: Potential Retained Employment Sites proforma Appendix 3: Schedule of Potential New Employment Site assessments Appendix 4: Schedule of Potential Retained Employment Site assessments Appendix 5: Newcastle Gateshead Employment Land and property Demand Assessment 7 Summary Introduction 1.1 Newcastle City Council has undertaken an Employment Land Review (ELR) as part of the evidence base for the City’s Local Plan. 1.2 The ELR will provide robust evidence to demonstrate the scale, type and broad location and deliverability of new employment floorspace and land needed across the City. It informs the emerging policies and proposed allocations set out in the Development and Allocations Plan (DAP). 1.3 This ELR is concerned with informing Newcastle’s employment land supply to support the emerging DAP. The CSUCP, which was adopted in October 2015 fixes the requirements to 2030. 1.4 The Council’s Local Plan for Newcastle is broken down into two parts. Part 1 is the CSUCP, adopted in March 2015 and part 2 is the DAP. 1.5 The Core Strategy is the strategic level document for the City. It is a joint document produced by Gateshead and Newcastle Councils, and includes policies to ensure the expansion of employment area, science and research, retail-led development, housing growth and infrastructure to support development in the heart of the region. 1.6 The Development and Allocations Plan (DAP) forms part 2 of the Local Plan for Newcastle, and provides detailed employment site allocations and policies for managing development as well as providing site allocations and designations. It supports the strategic growth priorities set out in the CSUCP. 1.7 This ELR 2018 has been produced to provide a key evidence base document supporting the DAP. It will inform the policies in the DAP and its employment land allocations. 1.8 The ELR has been undertaken in compliance with national planning guidance and follows the three-stage process outlined in the Government’s Employment Land Review “the brown book” as follows: o Stage 1 – Taking stock of the existing situation – review of key local economic and employment issues. o Stage 2 – Creating a picture of future requirements – analysis of economic forecasts, recent trends and local policy aspirations to quantify the amount of industrial and warehousing land and office floorspace required by the city and its key economic sectors in the period 2010 to 2030. o Stage 3 – Identifying a “new” portfolio of employment sites – review of the city’s main employment areas and sites to assess their suitability for continued employment use and identifying potential sites to fill gaps in future supply. 1.9 This ELR is accompanied by a detailed assessment of economic development requirements provided in October 2016 as part of the Newcastle and 8 Gateshead Employment Land and Property Demand Assessment Update (ELPDA).