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Enterprise M3 welcomes opportunities highlighted by new report

On 26 April, more than 80 delegates from business, local government and third sector organisations in Hampshire and Surrey attended an event at the Aviator Hotel, Farnborough, to hear the findings of the Enterprise M3 LEP's Commercial Property Market Study.

Commissioned by the Enterprise M3 Land & Property Group, this unique collaboration between members of the property and development industries and public sector policy makers found that, in general, the supply of commercial and industrial property in the M3 corridor exceeds demand, although a range of different scenarios prevails across the area, with continued pressure for change of use - from example, from office space to housing.

As well as reporting market conditions and the nature of available sites, the study's authors looked ahead. Simon Ward of Propernomics spoke about cyclical and structural change in the office market: "Changing working practices will continue to affect office demand but the market will become polarised as firms seek higher quality, more efficient space. Creating viable development with market appeal is the challenge that developers and planners must address together. The implications for our built environment, including places of work, homes and town centres, as well as our economy, are profound".

The study concluded that in the Enterprise M3 area - which, according to recent research*, has the most resilient economy in England - a creative approach to land use and promoting growth would be required as the country emerges from recession, with the LEP facilitating engagement between all parties to understand business intentions and appropriate policy responses.

One of the key elements to kick-starting development is the planning process, and this is something the LEP is addressing through the development of its innovative Planning & Development Charter. "The Charter is designed to encourage all 14 local authorities in the M3 area to work towards a common set of approaches and pledges for planning applicants," explained Matt Peachey from Woking Borough Council, who is a member of the team developing the Charter. "It seeks to communicate, in a simple way, what businesses can generally expect from the process." The draft Charter will soon be available on the Enterprise M3 website.

The event included presentations from Kate Dean, Regional Director of industrial property firm SEGRO, who talked about the current situation and future trends in the sector, while Chris Tinker, Regeneration Chairman at Crest Nicholson, discussed the challenges currently faced by house builders in meeting the need for residential development.

Said Malcolm Young, Chair of the Enterprise M3 Land & Property Group and Chairman of the Wilky Group: "Our research has highlighted the many positive attributes of the area, including an excellent choice of sites and premises for business use. We have capacity for growth that is a major strength for the region. We know that we must examine how well our current availability sits with the market's needs, and be clear about any gaps in supply. We also need to differentiate between the needs of disparate locations.

"This study makes it clear that a creative approach to land use is needed, perhaps embracing mixed use development more fully. Public sector policies and private sector proposals need to be increasingly `evidence based' in order to succeed, and our role as a LEP is to stimulate further engagement between all parties to ensure that the area continues to attract investment."

Geoff French, Chair of Enterprise M3 LEP, concluded: "The M3 corridor is a great area to live and work in. We have plenty of space for businesses to grow or relocate, and an excellent quality of life. This ground-breaking study has given us a greater insight into the challenges and opportunities across the area, and the excellent relationships we have helped foster between planners and developers can only help us fast-track the creation of the conditions for much-needed economic growth."

* Research by Experian commissioned by the LEP Network