After decades of under-investment, Scotland’s transport infrastructure is to receive over £3bn worth of improvements over the next 10 years. The schemes, unveiled last October, are to be put in place by a new, tailor-made Scottish Executive agency known as Transport Scotland.
The quango will take control of proposed and existing projects. These include 94 major road schemes to be completed by 2008, including the M77 extension, a new Eastern Link road at Kincardine and a second Kincardine Bridge. In addition, the improvement of single carriageway networks connecting the A9, A75 and A77 and refurbishment of the A8 at Baillieston are also being proposed, as well as improvements to rail and air transport in Scotland.
“Scottish transport infrastructure has suffered from under-investment and a lack of cohesion for too long,” says Transport Minister, Nicol Stephen. “We are determined to deliver greater investment in public transport. One of the greatest challenges we face is the need to make transport more sustainable while promoting economic growth throughout Scotland.”
21st century network
But will the executive’s proposals deliver a 21st-century network beneficial to the commercial property market? The underlying view from the majority of Scotland’s leading surveyors and planners is that infrastructure will stimulate commercial property development on a local rather than regional level.
“In Scotland, these transport schemes will have a limited impact on the overall commercial property market, as the country’s pattern of land use is largely determined by geography,” predicts Chesterton’s Philip Neaves.
Neaves believes the property market in large cities, such as Edinburgh and Glasgow, could see ‘significant activity’, with development springing up around strategic areas with improved transport links.
Improved road networks, particularly in the central belt, generate construction as businesses look for sites with better communication links for the movement of goods, services and people.
It is expected the schemes that will create the greatest catalyst for development are motorway and road improvement projects proposed for the M74, A8 and A80 highways. Sectors likely to benefit from these schemes will include retail, service and small-scale manufacturing industries.
The proposed rail links to Edinburgh and Glasgow airports are also sparking enthusiasm from the development community, which many predict will rejuvenate property construction on the outskirts of the cities.
“Edinburgh and Glasgow airports lack direct rail links. An airport served by proper infrastructure with good investment is a breeding ground for commercial property development,” says Drew Oswald, senior partner at Knight Frank in Glasgow.
He points out that commercial property value depends greatly on its location in respect of having access to transport, services and an accessible workforce. Historically, he believes substandard transport in Scotland has had a negative impact on property value, together with businesses’ ability to grow to their full potential.
An additional 16 new air services for Scotland are also proposed, plus air routes serving the Highlands and Islands as well as more facilities to enable road freight to be transported by rail and water.
An example of poor transport infrastructure that hindered development in the eyes of many surveyors was Edinburgh Park, which was planned in the late 1980s to link into the Centre of Edinburgh Rapid Transport Scheme. “The park was planned without adhering to all conditions of the scheme and throughout the 1990s development outstripped transport infrastructure,” says GVA Grimley’s Andy Carswell.
He claims the problem has now been addressed through the opening of the Edinburgh Park railway station last November. Carswell believes the park will attract more development over the next few years as businesses appreciate the site’s strategic location with improved transport links.
In addition, the Stirling, Kincardine and Airdrie to Bathgate rail links are to be re-opened. A central belt to borders rail link and a modern public transport system for Edinburgh including a tram network, congestion charging, and improved bus services are also in the pipeline.
Another rail initiative set to stimulate property growth is the first phase of the Aberdeen Crossrail project, which is undergoing a feasibility study. The scheme proposes a regular rail service between Inverurie, Aberdeen and Stonehaven.
New opportunities
“The new services will serve existing centres of employment and open up new opportunities for buildings north and south of Aberdeen,” claims Peter Cockhead of the Northeast Scotland Transport Partnership.
Glasgow is undergoing a similar cross-rail feasibility study, and new rail links for Larkhall and Milngavie, a new station at Gourock, and upgraded rail links to Edinburgh are also proposed.
Urban transport schemes play an important part in stimulating redevelopment of property located in built-up areas. A case in point is Edinburgh’s proposed £375m tram network, which will consist of three lines in and around the city.
With empty property in Edinburgh and Glasgow hovering around 10%, surveyors predict better transport infrastructure could stabilise vacancy rates. “Improved infrastructure is not just about attracting new commercial property. The challenge is to make existing developments better functioning on the strength of a sustainable transport system.
“Nevertheless, it could be 10 to 15 years before the infrastructure has any real impact on the Scottish commercial property market,” sums up Mark Robertson, partner of Edinburgh surveyors, Ryden.
|
|
|
Property Consultant, Drivers Jonas, has been carrying out a feasibility study into the redevelopment of Perth’s bus and train stations as potential sites for commercial property. |
|
Advising Perth and Kinross Council, the consultants recommend the bus station be amalgamated with the train station, creating a single terminus with further capacity for commercial property development. |
|
“A combined bus and train station would provide passengers with a more accessible public transport hub situated in the city centre,” says Ian Lochhead of Driver Jonas. “The old bus station provides 10,000 sq ft of space, and could be redeveloped into new commercial property located just five minutes walk from the main terminus.” |
|
In the city centre, Driver Jonas also considers that Perth has property assets that could be unlocked and redeveloped as new stock. |
|
Consulting Network Rail and bus operators, Drivers Jonas believes improved rail links from Edinburgh and Glasgow to Perth could stimulate development in and around the city. |
