www.dtz.com ` Maidstone Town Centre Assessment Maidstone Borough Council August 2013 DTZ, a UGL company 125 Old Broad Street London EC2N 2BQ Contents 1 Executive Summary .........................................................................................................................................................................3 2 Introduction .....................................................................................................................................................................................6 3 Town Centre Audit ...........................................................................................................................................................................7 4 Qualitative Retail Need Assessment ..............................................................................................................................................42 5 Market View of Maidstone Town Centre ......................................................................................................................................49 6 Intervention Options/Implications Analysis ..................................................................................................................................65 7 Site Specific Analysis ......................................................................................................................................................................80 8 Conclusions & Recommendations ...............................................................................................................................................105 Appendix A – Plan of ‘town centre boundary’ Appendix B – Plan of ‘retail core’ Appendix C – Comparative retailer representation Appendix D – Historic vacancy rates Appendix E – Maidstone town centre ‘blocks’ Appendix F – Len House Appraisal Appendix G – The Mall Appraisal Appendix H – Haynes Ford, Ashford Road Appraisals Appendix I – Coleman House Appraisal Appendix J – Miller, Kent & Medvale House Appraisals (inc 27 Mote Road) Appendix K – Whatmans Appraisals 2 1 Executive Summary 1.1 This report considers the future for Maidstone town centre at a time of almost unprecedented change, particularly in terms of the uncertain economic climate for the global economy and the sweeping changes in the retail sector. The report has been written to inform Maidstone Borough Council’s approach to the town centre in the future, through planning policies and other more direct tools to promote development and regeneration. 1.2 In responding to the Council’s brief, the report sets out: the results of our Town Centre Audit; a Qualitative Retail Need Assessment; a Property Market View of Maidstone Town Centre; an analysis of potential Council Intervention Options and Implications; and our site-specific analysis. 1.3 The report has also drawn from a quantitative retail capacity study that we have carried out concurrently for the Council. 1.4 From our audit of the town centre’s current performance, key findings of our analysis can be summarised as follows: Maidstone’s rank within the Venuescore national hierarchy of shopping centres decreased between 2007 and 2013 (from 33rd to 52nd), due to the relative improvement of similarly-ranked shopping centres across the UK and a relative lack of investment in Maidstone Town Centre over this period. Whilst the town centre’s composition of uses is broadly ‘as expected’ given its size, we consider Maidstone to be under-represented by A3/A4 leisure uses (relative to many of the principal competing/ comparator centres). This has implications for dwell time within the town centre. Our findings indicate that vacancy rates in Maidstone Town Centre, whilst higher than some of the principal competing/ comparator centres, have ‘levelled out’ since 2009. The majority of vacant units in Maidstone are concentrated in ‘secondary’ areas. The prime retail areas (i.e. Fremlin Walk and the southern end of Week Street) are ‘healthy’ and perform well in this regard. Maidstone Town Centre has a high representation of major retailers (28 out of 31). The presence of these major retailers drive footfall, and helps to define the town centre’s most ‘healthy’ and prime retail areas, namely Fremlin Walk and the southern end of Week Street. The town centre has a ‘bulky goods’ retail offer to the immediate west of the river, which complements rather than competes with the retail core. The former area also comprises a strong leisure offer, predominantly focused within the Lockmeadow Entertainment Centre. The town centre office market is heavily subdued due to the dominance of nearby out of town business parks. Further, the stock of existing offices in Maidstone Town Centre is generally unsuited to modern occupier requirements. The public sector is a highly dominant town centre office occupier at present; this is likely to continue in the absence of private sector demand. 3 Residential uses within the town centre are primarily supplementary to the commercial core, and are not generally considered to be the prime residential market within the Maidstone catchment. 1.5 Our assessment of Maidstone’s qualitative needs and opportunities for improvement looks at deficiencies in existing retail provision (i.e. gaps in the retail offer and consumer choice) and the quality of existing retail provision (i.e. characteristics of provision against modern retailer requirements). We conclude that: There is a notable lack of large, modern and well-located shop units to attract those major ‘anchor’ retailers not currently represented in Maidstone Town Centre (e.g. Debenhams, John Lewis). The Mall lacks a high quality ‘anchor’. Further qualitative improvements should focus on improving the pedestrian environment at the northern end of Week Street, an important ‘gateway’ to the town centre from Maidstone East Railway Station. There are currently some prominent vacant units in Maidstone, which serve to detract from the vitality and viability of the town centre. Notable examples include the former House of Fraser unit on Week Street (which we understand is soon to be occupied by Morrisons M Local) and the former Somerfield unit on King Street (which we understand is soon to be demolished with a view to future redevelopment). The use and occupation of these prominent town centre sites presents an opportunity to increase pedestrian flows and improve ‘secondary’ shopping areas. The town centre lacks a concentrated mid/ upper market A3 offer. The main focus of the ‘evening economy’ is currently Lockmeadow Entertainment Centre, Earl Street and, to a lesser extent, High Street. Further provision should be encouraged along Earl Street in particular. The western side of Maidstone Town Centre could be better integrated with the retail warehouses to the west of the River Medway, by means of a new pedestrian bridge. Whilst this represents a strategic opportunity for the town centre, funding is a challenge. 1.6 We have also looked at future property market trends and their potential impact on Maidstone town centre. These trends include: The reduction in multiple retailer representation across the UK, with a focus by brands on a smaller number of larger locations. Tied into this is the growth of internet shopping. The increased importance of A3 and leisure uses in terms of anchoring town centres and major new shopping centres. Changing store formats such as the growth in “pop up” stores. The importance of providing a high quality of experience (through the quality of the retail and leisure offer through to the quality of environment and accessibility) to shoppers in order to attract and retain their custom. The importance of achieving an appropriate balance between independent and multiple retailers. 1.7 Following our analysis, we set out a range of potential interventions open to the Council to work with its partners to build on the town centre’s strengths, address weaknesses and take advantage of future opportunities. Potential interventions can be categorised as follows: 4 Policy support – including what the Council could take forward in terms of developing its planning policies for the town centre. Funding to facilitate development – we have outlined potential sources of funding that the Council could consider in order to assist with unlocking potential development opportunities in the town centre. Town centre management – whilst Maidstone already has a successful town centre management scheme, we have identified potential ways in which the Council could work together with partners to examine the potential to broaden the town centre management agenda out so that safety, security, maintenance and marketing work is integrated with the consideration of future physical development opportunities. Direct role in development – since the market is not currently providing solutions to town centre development opportunities in the UK in general, we have outlined a number of ways that the Council could become directly involved in the development process, from engaging with partners to taking a stake in potential development projects. 1.8 At a further level of detail, we have carried out development appraisals in relation to a number of potential development sites in the town centre to illustrate the opportunities for regeneration and for the Council to influence future development at a site-specific level. 1.9 In summary, it is a real positive that Maidstone town centre has several strengths to build upon in an increasingly competitive