They got there in the end. The Scottish parliament building in Edinburgh finally had its official opening last month, attended by the great and the good from all over Scotland, and actor Sean Connery. The delays and almost £400m overspend filled headlines and the odd conversation over the dinner table, but now the Scots are left to love or loathe their symbol of devolution.
Everyone has a view on the building’s design, and how much it cost, and probably will for as long as the building stands. But will the money pit of today become a money magnet of tomorrow and spark further development activity?
Ten years ago, the area to the east of the Royal Mile was very different. “In 1995, you couldn’t give stuff away,” says John Clement, partner with King Sturge. “The residential market was just starting to pick up, which is why residential schemes came on. It is also why Scottish & Newcastle wanted to move out because it wasn’t a commercial location.”
Royal residence
Clement was involved in the sale of the Scottish & Newcastle site, which subsequently came under the North Holyrood masterplan, drawn up by Scottish Enterprise when it launched a £150m regeneration initiative. It was then, and to an extent still is, an area of stark contrasts, where blocks of run down council flats sit alongside a royal residence, all against the dramatic backdrop of Arthur’s Seat.
The area was given a boost when the Scotsman newspaper decided to buy a chunk of land and build its offices on Holyrood Road, where it opened for business in 1999. Dynamic Earth, one of the more successful millennium projects, along with the Macdonald Hotel, opened the same year. Together with Holyrood Palace, the Queen’s official Scottish residence, these projects helped tourist numbers reach around 700,000 pa.
The decision to build the parliament opposite Holyrood Palace undoubtedly turned up the heat on regeneration. “That part of town is looking absolutely fabulous now, but there was quite a bit committed before the parliament announcement,” says Cameron Stott of Jones Lang LaSalle. “New residential developments proposed were before the parliament had its plans revised, so developers decided to up the quality of development. The area improved significantly after the parliament decision.”
Those that had land to develop, such as the Barclay Brothers, owners of the Scotsman, also benefited. They sold land next to their offices, which had planning permission, to Grosvenor. Stott, who was involved with the sale, says there was competition among buyers, which he puts down to the effect of the parliament building.
Different picture
But it has not all been positive. If the construction of the building had stayed even remotely within budget, and been completed on schedule, it could have been a different picture.
Robin Blacklock of CB Richard Ellis says: “There has been a perception problem and, until the building was finished, the whole area was blighted.” CBRE is the letting agent for Holyrood Park House, Grosvenor’s office development on the former Scotsman land. The 47,000 sq ft building was completed in October last year, a date that had been set to coincide with the opening of the parliament building. It is yet to find a tenant.
The empty building is also, however, symptomatic of the general malaise in the office market. But this has not put Grosvenor off asking for rents of up to £25 per sq ft. With recent headline deals achieving around £27.50 per sq ft, it is not that far short of what developers of grade A space in the established locations expect.
If the parliament building is to act as a magnet for office occupiers, most commentators believe it will attract quangos, development agencies, the media and perhaps the legal profession. There are few opportunities for large-scale commercial development in the immediate area, and those looking for proximity to the parliament tend to be small space users.
“You might get business centres opening up so that people can have representatives close by,” says Stott.
Regeneration – has it happened?
What the parliament building could do – and some think it already has – is turn around the fortunes of a much wider area. The eastern side of the city centre was the traditional office core, but planning constraints forced developers west, and the Exchange district grew up, attracting big occupiers such as Scottish Widows and Standard Life. The Waverley Valley, of which Holyrood is a part, has a number of development opportunities.
Stott points out that office take-up for the city centre this year is on schedule to improve on last year’s figures, and there is limited grade A space available or under construction.
“There is no doubt that the parliament building has changed everyone’s view about that part of town, and it will bring forward the redevelopment of the Waverley Valley,” says Stott. Scottish Enterprise set out 10 years ago with the aim of regenerating the Holyrood area, and what it has achieved must be applauded. “Has it achieved urban regeneration? It certainly has,” says Clements.
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● 6 April 2000 Project gets the go-ahead, despite costs spiralling upwards from initial estimate of £40m ● 4 July 2000 Architect Enric Miralles dies, aged 45 ● 20 September 2000 Cost rises to £195m ● 23 June 2001 Cost rises to £230m ● 8 April 2002 Rumours that there will not be enough space for staff and MSPs are dismissed ● 5 October 2002 Cost breaks the £300m barrier ● 28 November 2002 Grand opening is cancelled ● 7 June 2003 Cost climbs another £50m to £375m ● September 2003 MSPs supposed to move in ● 23 September 2003 Cost breaks the £400m barrier ● 28 October 2003 Inquiry into building delays, headed by Lord Fraser of Carmyllie, begins ● 1 February 2004 Queen reported as saying the building looks “out of place” at Holyrood ● 25 February 2004 Cost now estimated at £430m and completion scheduled for June ● 2 August 2004 First staff begin to move in ● 2 September 2004 MSPs move in. Final cost is £431m ● 16 September 2004 Official inquiry heavily criticises civil servants for “catastrophically expensive decisions”. Lord Fraser reported as saying: “If it could go wrong, it did go wrong.” |
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It could be the controversy or it could be the creation of a piece of history but, whatever the reason, people flocked to see the parliament building when it opened on 9 October. Visit Scotland, the Scottish tourist board, calculated that around 33,000 people visited the building in the weeks after it opened. It puts annual visitor estimates at 780,000. A spokesperson for Visit Scotland commented: “Set beneath the dominating landmark of Arthur’s Seat, the newly built Scottish parliament is exactly the type of high-quality visitor attraction that offers another significant contribution to the tourism industry.” Indeed, if it does hit the projected visitor numbers, it will become the second-most popular attraction in the Scottish capital behind Edinburgh Castle. With Holyrood Palace and Dynamic Earth already attracting in the region of 700,000 visitors a year, agents can be forgiven for thinking that the area will become more attractive to retailers and leisure operators. Derek Gordon of Eric Young & Co comments: “Just looking at the numbers of people visiting the area, there will be a meaningful increase in demand, and the offer will extend down the high street.” The only problem will be finding suitable property to create new space. “If you can find space in the pedestrian flow, then there is the opportunity to make some money,” adds Gordon. Some canny operators have already got a foothold in the market. For example, Pizza Express opened last month on Holyrood Road. Gordon says that the pizza chain saw the opportunity that the Scottish parliament building would create, and timetabled its opening to coincide with that. |
