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Gateshead Employment Land Review Update and Office Capacity Study

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Gateshead Employment Land Review Update and Office Capacity Study Gateshead Employment Land Review Update and Office Capacity Study Final Report Gateshead Council 13 July 2012 21196 Nathaniel Lichfield & Partners In association with Storeys Edward Symmons This document is formatted for double sided printing. © Nathaniel Lichfield & Partners Ltd 2012. Trading as Nathaniel Lichfield & Partners. All Rights Reserved. Registered Office: 14 Regent's Wharf All Saints Street London N1 9RL All plans within this document produced by NLP are based upon Ordnance Survey mapping with the permission of Her Majesty’s Stationery Office. © Crown Copyright reserved. Licence number AL50684A Gateshead Employment Land Review Update : Final Report Contents 1.0 Introduction 3 Context 3 Approach and Methodology 5 2.0 Study Context 9 Introduction 9 Gateshead Borough Area Context 9 Policy Review 11 Regeneration Strategies and Initiatives 20 Summary 32 3.0 Economic Overview 34 Economic Activity 34 Economic Trends 34 Knowledge-based Industries 40 Commuting 40 Conclusions 41 4.0 The Current Stock of Employment Space 43 Introduction 43 Main Employment Areas 43 Stock of Employment Floorspace 44 Emerging Supply of Employment Space 46 Property Availability/Vacancy Levels 46 Development Rates 47 Losses of Employment Land 50 Age of Premises 50 Available Employment Land 51 Employment Space in Adjoining Areas 51 Conclusions 56 5.0 Economic Potential and Growth Sectors 58 Context 58 Future Potential 59 Sectors with Growth Potential 62 Gateshead’s Future Economic Role 68 6.0 The Gateshead Commercial Property Market 70 Introduction 70 Overview 70 Industrial Supply / Demand 72 2737085v3 Gateshead Employment Land Review Update : Final Report 7.0 Stakeholder Consultation 82 Introduction 82 Face-to-Face Meetings and Telephone Discussions 82 Summary 93 8.0 Planning for Employment Land Needs 94 Factors effecting Future Employment Space Needs 94 Growth Scenarios 96 Gross Employment Space/Land Projections 107 Conclusions 114 9.0 Review of Current Employment Areas 115 Introduction 115 Overview of Primary Employment Areas 122 Overview of Secondary Employment Areas 163 Gateshead Town Centre 179 10.0 Demand / Supply Balance 187 Introduction 187 Current Availability 187 The Portfolio of Sites 190 Area Summaries – the Way Ahead 194 Site Deliverability 222 Summary 225 11.0 Summary Conclusions 227 P2 2737085v3 Gateshead Employment Land Review Update : Final Report Glossary 2 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 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 (Use Class Order 2005 Definition); B1b: Research and Development – Laboratories, Studios (UCO 2005 Definition); B1c: Light Industry (UCO 2005 Definition); B2: General Industrial (UCO 2005 Definition); B8: Storage or Distribution (UCO 2005 Definition). 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 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 (ODPM). 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 (ODPM) Land Immediately Available:- Land serviced or capable of being serviced in 12 months. 2737085v3 Gateshead Employment Land Review Update : Final Report Land Requiring Preparation: Land where major provision of roads and utility services is required, or where major demolition and site remediation is required. Plot Ratio: the ratio between gross floorspace and total site area. Employment Density: average floorspace per worker ratios, usually expressed as square metres per worker. Historic Take-up: The average yearly development of commercial/industrial land for employment uses over the last 10 - 25 years. 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. Further explanatory text regarding the Key on the Employment Site Classification Maps: • Existing employment site within PEA/SEA to be retained: site currently containing a B1, B2 and/or B8 use that has UDP policy protection, and which is recommended for retention for employment use; • Existing employment site outwith PEA/SEA to be retained: site currently containing a B1, B2 and/or B8 use that does not have UDP policy protection (i.e. beyond a PEA/SEA), and which is recommended for retention for employment use; • Existing employment site to be retained, although PEA/SEA protection to be removed: site currently containing a B1, B2 and/or B8 use that has UDP policy protection, and which is recommended for retention for employment use. However, the PEA/SEA policy protection should be revoked from the site. • Suitable site, although uncertainty over delivery - PEA/SEA protection to be removed: site currently containing a B1, B2 and/or B8 use that has UDP policy protection, and which is suitable for employment use (albeit there is a degree of uncertainty over whether the site can come forward for employment use). The PEA/SEA policy protection should be revoked from the site. P2 2737085v3 Gateshead Employment Land Review Update : Final Report 1.0 Introduction 1.1 This Employment Land Review (ELR) has been commissioned by Gateshead Metropolitan Borough Council (GMBC) to provide robust evidence to demonstrate the need for, and deliverability of, employment allocations across the Borough. The ELR will inform the Borough’s Local Plan, specifically the Joint Core Strategy with Newcastle City Council and the Site Specific Allocations Development Plan Document (DPD). 1.2 The ELR has been undertaken by Nathaniel Lichfield and Partners (NLP) with Storeys Edward Symmons, in parallel with the Gateshead Strategic Housing Land Availability Assessment (SHLAA) and Office Capacity Study (OCS) so that land availability and suitability can be considered across a range of land requirements. The study has involved a process of continual iteration and data transfer between the three studies, with the ELR originally published in July 2010. Whilst the SHLAA has been produced as a separate document in- house by GMBC, the Office Capacity Study is appended to the main ELR Report. 1.3 An Office Needs Assessment has also been undertaken for both Newcastle and Gateshead Councils which, although separate to the ELR commission, has also informed the conclusions to this report. 1.4 This report comprises an update to the original ELR/OCS, published in July 2010, to accommodate new econometric job forecasts produced by St Chad’s College, Durham that better reflect the implications of the sustained economic downturn. The report has also been redrafted to take into account the new National Planning Policy Framework (NPPF). Contextual information and site assessments in the earlier report have also been updated where appropriate to reflect changing circumstances. There have also been iterations to the SHLAA and ELR based on the studies Quays and Gateshead Central. The 2010 version of the SHLAA has also been updated in-house by GMBC. Context 1.5 The proposed methodology reflects the Council’s main objectives and issues identified in the study brief. These are twofold: 1 To undertake a Strategic Housing Land Availability Assessment (SHLAA) identifying the amount of land available for housing, taking into account factors that may affect its deliverability and developability; and 2 To provide an Employment Land Review (ELR), comprising a demand and supply assessment of employment land evidence for a 25 year period; this would also incorporate an office capacity assessment. 2737085v3 P3 Gateshead Employment Land Review Update : Final Report 1.6 The SHLAA and ELR/Office Capacity Studies were undertaken in parallel so that land availability and suitability can be considered across the full range of land requirements. This approach is consistent with the NPPF, which states that reviews of land available for economic development should be undertaken
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