Transport provides big challenge for UK

Developers have been quick to react to government demands for sustainable development close to transport nodes, but there is concern about inadequate public transport which has prompted the construction of housing near office parks Options to develop out-of-town sites for business parks were cut back in 1999 when new UK government planning guidance asked for projects to be built in clusters and around public transport nodes. The initiative was in recognition of the importance of the hi-tech industries and a wish to see staff living closer to their workplaces. But the speed at which government policy shifted has been matched by the rate at which developers, investors and occupiers are accommodating the shift. Developers are pragmatic about choosing sites. According to Julian Barwick, Development Securities’ joint managing director: “The trend now is towards well-designed, large buildings and away from occupiers’ reliance on the car. Although public transport is still very important, there is a concern about the quality on offer.” Developers’ challenge Alistair Elliott, partner, business space at Knight Frank says there is a big challenge for developers to respond to planners reducing the amount of car parking on sites: “The government wants sustainable development but there needs to be proper transport. And it shouldn’t mean developers having to put hands in pockets to provide buses. It has to be supported and funded by government.” Managing partner of Knight Frank’s Cardiff office Tony Nicholas says there has been a particular demand for office buildings within bigger business parks, especially among big tenants like Cisco and Motorola, who buy plots from developers with options on surrounding land for future expansion. “Consumers are demanding a higher quality of environment,” he says. Nicholas also says that a big trend is for residential clusters to be sited close to office and business parks to make it easier for staff to get to work. This is happening at Cardiff Gate Business Park and at Kings Hill Business Park in Kent, where a small town was planned as part of the development. Henry Williams of Stanhope agrees that there is a move away from long commuting times: “Developers are doing satellite offices for companies to avoid making staff travel into city and town centres.” Stanhope is building the 139,350m2 Chiswick Park, which is within London’s tube network. While skill shortages remain in many areas in the UK, attracting and mollifying staff is key, therefore quality is king. This comes at a price and Williams is asking up to £408.12 per m2 for the latest phases of Chiswick Park. UK office park prime rents Rents for office parks are similar to city and town centre levels Area City/Town Business Park Rent £ per m2 Scotland Glasgow Strathclyde Business Park 153 – 172 Edinburgh Edinburgh Park 256 Southgyle Park 226 – 237 North East Newcastle Cobalt Business Park 129 – 145 Sunderland Doxford Business Park 129 – 143 Yorks & Humber Leeds Lawnswood Park 172 – 178 Thorpe Park 172 – 178 White Rose Office Park 172 – 178 North West Manchester Christie Fields Office Park 199 Manchester Business Park 204 – 215 King’s Reach 178 Chester Chester Business Park 178 West Midlands Birmingham (Solihull) Birmingham Business Park 204 – 215 Blythe Valley Business Park 199 – 215 Trinity Office Park 210 – 215 East Midlands Nottingham Nottingham Business Park 156 Pheonix Park 145 The Island 135 – 140 East Anglia Cambridge Cambridge Science Park 285 Huntingdon Hitchingbrooke Business Park 140 Peterborough Minerva Business Park 135 – 145 South East Oxford Oxford Science Park 215 – 226 Guildford Guildford Business Park 291 – 301 Newbury Newbury Business Park 204 Thames Valley Green Park 301 – 344 Reading Arlington Business Park 291 – 317 Chatham Chatham Maritime 188 London West London Stockley Park 378 Chiswick Park 323 – 378 Bedfont Lakes 334 – 360 Wales Cardiff Cardiff Gate 156 – 172 Grosvenor Waterside 178 South West Exeter Exeter Business Park 126 – 135 Bristol Aztec West 196 Bristol Parkway North 178 Source: Knight Frank Research & Consultancy