A former blue-collar town, Falkirk is about to see some first-class regeneration. Perched neatly by the M9 motorway between Edinburgh and Glasgow, it is strongly placed.
Housing development is attracting more people to the town, spurred on by the chance to take advantage of prices lower than those in Edinburgh and Glasgow, and it would be churlish of any local authority not
to seize its moment.
This month sees the submission of outline plans for Falkirk Gateway, part of the 10-year My Future’s in Falkirk initiative, which aims to create 4,250 jobs and stimulate £200m of investment. Preferred developer McDonald Estates, backed by the Royal Bank of Scotland, plans to build 500,000 sq ft of offices, 250,000 sq ft of bulky, non-food retail, a hotel, leisure facilities and a marina on a 300-acre site adjacent to the new Falkirk Stadium and the Forth & Clyde canal.
When it comes to offices, Falkirk is a town where small deals make up the lion’s share of its annual take-up of around 50,000 sq ft a year.
Demand shows confidence
“In Falkirk, there is a level of demand for both freehold and leasehold space but not the stock to satisfy it,” says Mike Irvine of Montagu Evans.
Step in McDonald Estates, which will, according to its development manager Niall McLean, effectively supply the area’s office requirements for the next 10 years.
“It is definitely right to build speculatively because it shows confidence in the area and there is difficulty in getting prelets,” says Irvine. “When you look across the central belt, there isn’t a lot else.”
The only fly in the ointment is rents, which have an average headline of £13.50-£14.50 per sq ft. When coupled with rising building costs, this could call into question the financial viability of office development. Irvine suggests that £16 per sq ft would be less risky.
McLean says office rents at the Gateway will be pitched at £15-16 per sq ft.
Plans for the scheme also include non-food, bulky goods retail. The only existing location in the town to offer such space is Hammerson’s Central Retail Park on the edge of town centre. Part of Central Retail Park has open consent, so it also houses occupiers such as fashion chain Next.
Nick Skelton of Roger Tym & Partners comments: “Falkirk Gateway is important as an economic driver. However, Central Retail Park has got some bulky goods so clearly there will be some tension.”
McLean says some tenants may reposition themselves but points out that Falkirk Gateway is to be developed in phases over 10 years.
The decision to allow only bulky goods shows the council’s commitment to protect the town centre. The centre’s problem is rents, which have been stagnant for the past seven years, according to Colliers CRE’s figures, at £90 per sq ft. This is due, in part, to a lack of new space.
Reconfigured space has attracted stores such as Desire by Debenhams to The Mall. Some believe the town is ripe for larger redevelopment.
Dr Mark Robertson, head of consulting at Ryden, explains: “Some Scottish towns have this latent capacity and haven’t been developed out and I would include Falkirk in that. Given the way that comparison expenditure is going, there is potential in the town.”
Pete Reid, principal surveyor at Falkirk council, says the need for more retail has been recognised. Development briefs drawn up by Roger Tym & Partners have identified a number of potential sites, such as the area around the bus station and Callender Square shopping centre at the eastern end of the town centre.
Multiple ownership of sites means land assembly could be a challenge, says RT&P’s Skelton. The council is examining this.
Reid comments: “The next stage is engaging with interested parties. Do we look at council-owned sites and package them up or do we look at liaising with developers?”
He points out that the council is only three years into its My Future’s in Falkirk regeneration plan. “We are on the threshold of something very exciting,” he says.
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● 9-10 year project ● Part of the My Future’s in Falkirk initiative set up by Scottish Enterprise Forth Valley, BP and Falkirk council ● Joint venture between McDonald Estates and Royal Bank of Scotland ● 250,000 sq ft non-food bulky goods ● 500,000 sq ft offices 300,000 sq ft grade A and 200,000 sq ft ● Detailed planning will be phased to respond to market trends ● First phase will consist of 100,000 sq ft and 2 x 45,000 sq ft blocks of offices ● Depending on planning consents, the aim is to start on site early next year, with the first office completed by the end of the year |
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Falkirk on the map |
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The My Future’s in Falkirk regeneration strategy incorporates a number of neighbouring towns |
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Bo’ness Known for its steam railway museum rather than its 18th-century harbour, Bo’ness has suffered neglect partly due to the Health and Safety Executive’s determination that there would be no change of use for the harbour area, because of an oil pipe there. This was overturned after a challenge by the National Trust which had bought a historic building in the town in 2002. In turn, this set the ball rolling for wider regeneration in the town, which attracts 60,000 visitors to its museum but is otherwise deprived economically. Some £5m of Heritage Lottery money has already been spent on its public realm. A bigger boost came last week when ING’s £175m harbour redevelopment was granted outline consent, with detailed permission gained for the first phase subject to section 75 agreements. ING has planned a scheme with a hint of Dutch influence. Fer Dijkstra, of Location Research International, who is advising ING, says this has more to do with the town’s historical connection with the Netherlands rather than ING’s Dutch roots. There are plans for 450 flats, 300 houses, a hotel and 17,000 sq ft of leisure. “It is an unusual project and not a very well-known place,” says Dijkstra. “It is a very good site next to the Forth with views of the highlands. It has a nice Victorian town centre that is a bit faded Work is expected to start early next year should the Scottish Executive decide against calling a public inquiry. Stenhousemuir This was first town to be tackled by Falkirk council. It has strong retail demand but the centre looks tired, according to Pete Reid, the council’s principal surveyor. ASDA was secured as anchor tenant for a 40,000 sq ft store in December. Detailed planning permission was granted to McDonald Estates last week for the £15m scheme, which will total 70,000 sq ft. Grangemouth The council is looking at the feasibility of a retail-led town centre regeneration costing around £22m. Denny Denny’s town centre suffers from high void rate. “The town centre needs to be brought into the 21st century,” says Falkirk council’s Reid. A feasibility study is looking at putting in 20,000-25,000 sq ft of food retail within a total of 60,000 sq ft of retail, plus some leisure use and a new library. Following a public consultation, developer Henry Boot has a target date of autumn for submitting a detailed application. |
