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www.gvagrimley.co.uk Market Demand & Feasibility Report LB Bromley 2009

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www.gvagrimley.co.uk

Market Demand & Feasibility Report

LB Bromley

2009

LB Bromley Contents

2009

CONTENTS

EXECUTIVE SUMMARY ........................................................................................................... I

1. INTRODUCTION & CONTEXT ................................................................................... 1

2. STRATEGIC POLICY CONTEXT ............................................................................... 8

3. WEST CAMP – BIGGIN HILL .................................................................................. 13

4. THE CRAY VALLEY, EAST BROMLEY .................................................................. 31

5. ORPINGTON TOWN CENTRE................................................................................. 58

LB Bromley Market Demand and Feasibility Report

2009 i

EXECUTIVE SUMMARY

BACKGROUND TO COMMISSION

GVA Grimley Ltd have been commissioned by the London Borough of Bromley (LB Bromley) to

undertake market demand and headline viability (commercial market) testing for office development /

investment at three key sites / areas within the Borough: West Camp (Biggin Hill); Cray Valley; and

Orpington Town Centre. This is a follow on commission from the Employment Land and Economic

Development Study completed in March 2009.

The opportunity within the Bromley economy is clear, albeit it is compromised within the immediate

and short term economic climate (not unlike its counterparts and competitors). The Borough is seen as

an exporter of quality labour, reflected both in income levels, skills levels, and the occupation profile of

the resident based population. This suggests a latent opportunity for economic activity of a high quality

to be retained within the local area.

There are specific sector opportunities identified for Bromley including: Business and Financial

Services (primarily in the medium to long term given the current economic climate), Transport and

Telecommunications, Construction, High-Value Manufacturing, and Retail. There is further potential

identified within ‘knowledge-economy’ sectors suggesting an opportunity to harness more of this value

added activity within the local economy.

However, within this context there are identified challenges to delivering economic objectives, and

indeed within the immediate and short-term retaining existing businesses within Bromley. One of the

most significant constraints was identified in the Study to be the current stock of premises available

and commercial market conditions in this context.

The Employment Land and Economic Development Study makes a series of employment

recommendations in the context of this undersupply of quality office accommodation across the

Borough, including:

Consider opportunities for maximising the supply of new and improved office floorspace and of

retaining existing office uses wherever possible. Sites that are suited to delivering smaller office

developments alongside larger floorplates should be considered, within the town centres

particularly Orpington town centre and in locations proximate to the M25 including Ruxley and

the Crays; and

LB Bromley Market Demand and Feasibility Report

2009 ii

Consider the future employment function of existing land at Biggin Hill airport. There is an

identified opportunity to promote high-value manufacturing activities at the airport, with specific

opportunity identified at South Camp, including the potential to promote a balanced offer with

some small-scale office development such as a potential business / innovation centre.

In this strategic context, LB Bromley have commissioned this piece of work to assess the future

demand for office development investment, and potential for attracting office and/or business

occupiers in the future, including both freehold and leasehold occupiers, within West Camp (Biggin

Hill); Cray Valley; and Orpington Town Centre.

The key outputs of the commission will be recommendations relating specifically to:

The market demand for offices in each of the locations and the potential scale of office

development (including size of units / likely type of occupier);

Whether the identified demand and potential supply or required interventions should be viewed

as short, medium or long term, and the phasing of any likely development; and

A suggested ‘Action Plan’ to take forward each of the sites including options, as appropriate,

including phasing, marketing and delivery mechanisms, including the potential role for LB

Bromley as part of this process. This will take into account the distinct difference in approach

required within each of the three areas identified.

SUMMARY OF POLICY CONTEXT

A number of key themes emerge from the policy context undertaken as part of this study. These

include:

The importance of protecting the viability and vibrancy of town and urban centres through the

appropriate location of development, whilst recognising market opportunity in the wider area,

reflecting emerging policy guidance relating to rural economic potential specifically;

The need to ensure that employment related (in this context office) investment is strategically

located in relation to transport infrastructure ensuring sustainability of economic growth in the

future, and also improving commercial marketability of sites and developments in the future; and

The opportunity to recognise that there is a balance to be sought between appropriate locations

and property for small business activity / local and indigenous demand and appropriate

locations for inward investment locations and property. In this context Bromley town centre is

recognised as being a key strategic location, with potential for the wider hierarchy of opportunity

to reflect typologies of demand including small business and non-traditional urban centre office

uses (e.g. creative industries).

LB Bromley Market Demand and Feasibility Report

2009 iii

WEST CAMP, BIGGIN HILL

SITE ASSESSMENT

EXISTING BUILDINGS & USES

From site visit observation, the sites / buildings both within and outside of the Conservation Area are

not believed to be in active use currently or are not being utilised to their full capacity/potential. The

buildings are noted to be of a varied condition, and age, with some noted to make historic and heritage

contribution to West Camp, whilst others are of a modern and less imposing / visually appealing

nature.

The setting of the buildings, including simple but generally well maintained landscaped open space

and car parking areas is observed to be relatively good quality. The boundaries of West Camp are well

defined, and by-and-large intact, in the form of cast iron fencing around the perimeter.

STRATEGIC & LOCAL CONNECTIVITY

Given its location within the grounds of Biggin Hill Airport, West Camp is seen to have strategic

national and international connectivity via air travel, albeit this is restricted to business passenger

travel rather than large scale passenger flights. The Airport remains a key strategic asset however

even in this limited passenger context, being a key point of entry for business aviation flights to the

wider London area.

Direct access to West Camp from the A233 Main Road is adjacent to the Guardroom, Garage Block,

Reserve Water Tank, and Pump House, around half way along the collection of buildings.

SURROUNDING LAND USES

Biggin Hill Airport occupies a large proportion of the land formally used for the RAF Biggin Hill

Aerodrome. Adjacent to West Camp is South Camp, which includes the Biggin Hill Business Park and

Airport Industrial Estate, both of which house a variety of businesses including some linked to the

airport industry. A new hangar is being developed within this area by Rizon Jet. The hangar will offer

maintenance and ‘high-end’ handling, as well as a charter service.

To the west of West Camp, over the A233, there is a new housing development currently under-

construction, including luxury family accommodation. This is in addition to existing housing within the

wider area, and some natural open space and landscaping.

LB Bromley Market Demand and Feasibility Report

2009 iv

QUALITY OF WIDER ENVIRONMENT

The Airport lies within Biggin Hill ward. It is located to the northern edge of Biggin Hill itself, a relatively

large settlement to the south of the Borough. The wider environment of the airport includes rural /

agricultural land holdings, and a number of smaller residential settlements.

The general area is recognised to be of a relatively high quality in this context, including a local village

setting to the north of the Airport at Leaves Green including a village green, and local public house.

Amenity provision is relatively poor in this area.

POLICY ASPIRATIONS

The Planning Framework, finalised by LB Bromley Council in May 2007, establishes principles

(predominantly relating to land use and the desired retention of buildings on the site) to guide

development control decisions and to facilitate appropriate development at West Camp. The

framework does not rely on expansion of the Airport, or any increase in flights.

The Planning Framework advocated predominately B1 office activity in a number of the buildings

within West Camp with a gross floorspace capacity of in excess of 4,800 square metres for this use. It

also recognises potential within the existing buildings for a café and similar facilities, most likely as part

of / in proximity to any future Heritage Centre.

REVEALED MARKET DEMAND

Particular market opportunity is identified on the basis of:

Close proximity to Biggin Hill Airport which is considered to be a major positive driver. Particular

market interest has been identified on the basis of growth of businesses associated with the

airport, and their need for space to accommodate administrative staff requirements, etc, as well

as businesses that would choose to locate close to an airport that provides business travel

opportunities and lower cost office accommodation within an interesting and high quality setting.

There is an identified shortage of office floorspace of a good quality around the Airport, with

most existing floorspace and employment allocations skewed towards workshop / general

B2/B8 employment uses; and

The restrictive nature of the Green Belt in the area for wider development of office provision in

the market area, or in proximity to the M25 within the LB Bromley border. This promotes the

opportunity at West Camp for office activity to tap into latent potential.

LB Bromley Market Demand and Feasibility Report

2009 v

The proximity to Biggin Hill airport is a major positive factor. It was noted however that whilst

the airport might be growing, it remains restricted to private business travel rather than general

commercial flights, and therefore there are doubts as to how great an opportunity it presents to

non-airport related businesses.

In terms of airport related business, some agents, and the developer Capital Enterprise Centres

specifically, the proximity to the airport presented a good opportunity for small offices. The

provision of larger offices is perceived to be hampered by the lack of public transport and

amenities. It should be noted that one agent cautioned that there is already surplus space at

and immediately around the airport, but others explained that such space was for workshop

type uses rather than offices.

Capital Enterprise Centres, (CEC) in particular argued that there is a shortage of office space

for airport related businesses at Biggin Hill and that opportunities to expand are restricted due to

the boundary of the Green Belt. Re-use of the existing buildings of West Camp for office uses

therefore present a good opportunity to meet latent demand. CEC identified during consultation

the perceived success of its business centre development at Kings Hill in Kent which has

similarly refurbished Grade II listed buildings. It now provides serviced small office

accommodation ranging from 75 to 1400 sqft, notably advertised “with ample free parking”. Part

of the rationale for the Kings Hill centre was to assist start up companies, and CEC explained

that they envisage a similar formula also working at Biggin Hill, pointing out that West Camp has

the significant added advantage of locational-specific demand from airport related businesses.

The interest from CEC should give confidence to the Council relating to market appetite for

investment in West Camp for business uses.

It was also noted that the attractive location and historic character might appeal to certain small

businesses choosing where to locate their offices, but that such occupiers might prefer the offer

of a freehold premises with its “own front door”. The need for sufficient parking space was again

stressed.

KEY ACTIONS

The key actions for West Camp, Biggin Hill emerging from this study are summarised below.

LB Bromley Market Demand and Feasibility Report

2009 vi

Table 1 – Biggin Hill – Summary of Actions

Summary of Action Time Frame

Continued liaison between Council and interested parties at West Camp, Biggin Hill including the need for

potential investors to justify need for enabling development if proposing to diversify from the Planning

Framework significantly1

Immediate

The Council should seek to investigate ways to ‘unlock’ the potential at West Camp, Biggin Hill including

potential investment in public transport provision and highways access to the site, although S106

expectations should be considered in the context of the need to maintain the viability of private sector

investment in West Camp to deliver the aspirations within West Camp.

Ongoing

The Council should seek to ensure a positive planning position within the Core Strategy relating to West

Camp including the promotion of B1(a) business park uses, investment in listed buildings and their setting,

and supporting amenity / visitor provision (but not residential development).

Short Term

THE CRAY VALLEY

SITE ASSESSMENT

EXISTING BUILDINGS & USES

The Cray Valley is a corridor of varied land uses, including traditional and non-traditional employment

uses (with non-traditional dominated by retail warehousing that is seen to have eroded the established

business corridor along the A224 Cray Avenue / Sevenoaks Way in recent years). Traditional and

non-traditional employment uses are mostly clustered at the junction of the A224 with the railway

running east-west through the area, with St Pauls Cray to the north of the railway line and St Mary

Cray to the south.

The employment activities within the centre of the area, clustered around the main road, are

dominated by large ‘shed’ developments, with relatively poor frontage to the road including car parking

at key junctions / sites. Limited vacancy is noted within this stock with quality observed to be relatively

good.

STRATEGIC & LOCAL CONNECTIVITY

Connectivity to Cray Valley is relatively good, including rail links via St Mary Cray Rail station to

Bickley and Bromley South (with strategic links to London Victoria) to the west and Swanley,

Farningham, Longfield, to Rochester, Chatham and beyond to the east. Trains from St Mary Cray to

1 It is recommended within this study that there is minimal need for enabling and/or infill development to make delivery of B1(a)

development in this area viable, although opportunities for supporting and visitor provision should be sought.

LB Bromley Market Demand and Feasibility Report

2009 vii

Bromley South run every twenty minutes, and trains from St Mary Cray to Chatham run every half an

hour. Bus connectivity is considered to be relatively good.

SURROUNDING LAND USES

In its wider context this area is surrounded by residential development dating from the post-war period,

with open space / agricultural land holdings in the wider hinterland including the Ruxley Park Golf

Centre. The housing is noted to be of varied quality, similar to the Borough’s stock profile of family

housing. The offer is dominated by two-storey, medium density developments.

There are large expanses of rural land (Green Belt) to the east, stretching to Crockenhill, and the M25.

This area is of a relatively high quality, including some smaller settlements. South of the Cray Valley is

Orpington town centre, and to the west Petts Wood. Both settlements are of a significant size in terms

of their population and in the case of Orpington, its service centre role and function.

QUALITY OF WIDER ENVIRONMENT

Given its proximity to a number of relatively large residential areas, and also in the wider context

Green Belt surroundings, the quality of the environment in which the Cray Valley is located is

reasonable although varied.

Some of the housing areas within close proximity to the main corridor of business activity in the Cray

Valley are of mixed quality. The rural Green Belt areas to the east are observed to be of higher quality,

including smaller residential settlements of large family housing in low density settings.

Orpington town centre to the south is of mixed quality, with some historic features to the western end,

but observed decline in the core of the high street. New development and investment is, however,

known to be taking place within the town centre.

POLICY ASPIRATIONS

The Adopted UDP includes a series of relevant allocations for the Cray Valley, including:

The main stretch of Cray Avenue / Sevenoaks Way where business activity (including traditional

and non-traditional employment uses) is identified in the UDP to be a ‘Business Area’. Under

Policy EMP4 of the UDP;

The Cray Valley business area is located adjacent to a Conservation Area (covering a portion of

Millbrook Road to the east);

LB Bromley Market Demand and Feasibility Report

2009 viii

The area also falls within a designated Area of Archaeological Interest, as identified on the UDP

Proposals Map;

The Business Area is adjacent to designated Green Belt; and

The Business Area is also buffered in a number of places by designated Urban Open Space.

REVEALED MARKET DEMAND

Agents and developers alike noted that Cray Valley has traditionally been recognised as an industrial,

storage and distribution area, with a recent growth in prominence of retail warehouses. It was agreed

that it is not an aesthetically attractive location for office occupiers and it might prove difficult to change

the warehouse image of the area into a recognised office location. Any aspirations for the promotion

of Cray Valley as an office location should therefore be a long term objective.

The analysis of revealed demand for offices within the market area is reflective of the stock profile in

the area. Past development of offices has been limited to a small cluster at New Mill Road (Crayfields

Business Park), to the north of the Cray Valley, and High Street to the south of the railway line. All

transactions within these areas have been for second hand premises with no new office development

coming to the market in recent years. It is noted that Crayfields Business Park is of a relatively high

standard in this context, developed within the last ten years with relatively good levels of activity

observed. Rental levels have been relatively strong within transactions in the area, in the upper range

of those achieved on average across the Borough.

There is a recognised potential for office market development in the wider Cray Valley, noted

specifically in commercial market consultations and site visits undertaken. It is felt that any such offer

would have to be located in close proximity to strategic road links (including the A20 and M25

specifically) whilst still benefiting from the rail link to London (amongst other destinations). Proximity to

the M25 gives this area distinction over other business areas within the Borough, supporting an

associated commercial market opportunity. Future development should also be prioritised in locations

that are seen to have a positive relationship with the aspiration to change perceptions of the corridor

(e.g. on key sites / sites with prominent road frontages)

It is also important that any such offer which comes forwards in the area in the future must be branded

as an office / business park in its own right, giving it coherence and market presence and opportunity

to influence market perceptions of the wider Cray Valley area. As a longer term strategy it is

recognised that such an approach could contribute to the ‘re-branding’ (i.e. change in market

perceptions) of the Cray Valley Avenue corridor in general.

LB Bromley Market Demand and Feasibility Report

2009 ix

KEY ACTIONS

The study into the Cray Valley has included the identification of a number of sites including those that

are key sites on the basis of their prominence / potential to promote the ‘re-brand’ of the business

area, sites that are suggested to be tested for potential allocation within the LDF for B1(a, b) uses, and

sites that show potential for intensification (including the promotion of B1 (a, b) uses over time).

Figure 1 – Cray Valley Identified Sites

The key / gateway sites are identified on the basis of their prominence and the perception of their

current use (including the extent to which current employment activity is considered to be appropriate

LB Bromley Market Demand and Feasibility Report

2009 x

in terms of intensity and nature of use), and also their potential to influence the future direction of

development activity (and employment) within the Cray Valley. Combined, these sites have a total

land area of 8.88 hectares, with the potential to accommodate 88,838 square metres of office

floorspace (assuming a high plot ratio of 1) and between 4,230 and 4,935 jobs.

Two sites have been identified as potential sites for allocation, both adjacent to the existing Crayfields

Business Park. One of the sites, to the west, is understood to be a ‘protected’ public space (protected

through historical presence rather than any formal planning policy) while the other (eastern) site is

designated Green Belt. In delivery terms the public space is considered to be a medium to long term

opportunity whilst the site to the east has shorter term potential. The site to the east has an area of

5.06 hectares, with the potential to accommodate 32,863 square metres of B1 (a, b) floorspace and

between 1,565 and 1,826 jobs.

Finally, one site has been identified within the study to have specific potential for intensification in the

future on the basis of long term management of decline on the site. This site is located in proximity to

the existing Crayfields Business Park, and adjacent to the potential allocation sites identified and

highlighted above.

The key actions for Cray Valley emerging from this study are summarised below.

Table 2 – Cray Valley – Summary of Actions

Summary of Action Time Frame

The Council should prepare a Development Brief including financial feasibility of the identified cluster of

opportunity sites to the north of the Cray Valley. The Brief should consider, amongst other things, phasing,

potential release of the Green Belt, scale, massing and potential layouts (including access and movement,

landscaping and car parking), and the need and most appropriate location of amenity provision to support

future business investment in the area. Engagement with landowners should be sought as part of the Brief.

Immediate

The Council should monitor the take-up of land and premises within the Cray Valley including employment

levels, floorspace occupied, and business types by sector. Ongoing

ORPINGTON TOWN CENTRE

SITE ASSESSMENT

EXISTING BUILDINGS & USES

Orpington Town Centre is a designated Major Town Centre in the London Plan and is the second

largest town centre within the LB Bromley. The town centre is focused on the High Street which

extends approximately 900 metres and provides a range of retail and service uses. There are a

LB Bromley Market Demand and Feasibility Report

2009 xi

variety of uses in the town centre vicinity, including residential, office, retail, food and drink and

community uses.

On Knoll Rise, just off the High Street on its western side, towards the train station, are 4 and 5 storey

office buildings from the 1970’s and 1980’s which appear dated but of relatively good condition (albeit

detailed surveys of condition have not been undertaken as part of the study). Beyond this

concentration, office provision is seen to be located throughout the town centre primarily above retail

premises, of varying quality and levels of occupation.

STRATEGIC & LOCAL CONNECTIVITY

Local connectivity to Orpington is relatively good, including rail links via Orpington station

approximately 600m to the west of the High Street. The station is on the central London to south east

coast line and is operated by South Eastern trains. There is regular and direct access to stations in

central London, including Cannon Street, Victoria, Charing Cross, Waterloo and London Bridge. Much

of the South East London area is also served, as are stations in Kent, including Sevenoaks,

Tonbridge, Dover and Ashford International.

Bus connectivity is considered to be good, with services linking the town centre to much of Orpington

and the surrounding area, including Farnborough, Goddington, Derry Downs and St Mary Cray.

SURROUNDING LAND USES

The town centre area is urban in character but with visible public areas. There are a variety of uses

evidenced, including residential, office, retail, food and drink and community uses. Beyond the High

Street is predominately suburban, medium density, two storey housing.

The town centre is of mixed quality, with some historic features to the northern and western ends, but

with observed decline on the High Street. New development and investment is, however, taking place

within the town centre including at Orpington College, a new Village Centre at the western end of the

high street, and a new Tesco superstore, also at the western end which has recently opened.

QUALITY OF WIDER ENVIRONMENT

Given its proximity to a number of relatively large residential areas, and also in the wider context

Green Belt surroundings, the quality of the environment in which the town centre is located is mixed.

Specifically, some of the housing areas within close proximity are of varied quality. The rural Green

Belt areas to the east are observed to be of higher quality, including smaller residential settlements of

large family housing in low density settings.

LB Bromley Market Demand and Feasibility Report

2009 xii

POLICY ASPIRATIONS

Orpington Town Centre is identified within the UDP as a ‘Major Town Centre’, within which Primary

and Secondary frontage distinctions apply as designated on the Proposals Map. Orpington is noted to

be predominantly a convenience centre serving the local community, including a leisure economy.

Areas of Orpington Town Centre are also designated as a Conservation Area. The area also falls

within a designated Area of Archaeological Interest, as identified on the UDP Proposals Map. There is

also an Orpington Town Centre Masterplan in place to guide investment in the public realm throughout

the area.

REVEALED MARKET DEMAND

Despite the various constraints identified, agents and developers recognised that Orpington has the

fundamental attribute of good public transport, plus it is close to the M25. It was therefore felt that if

improvements were made to Orpington through investment over the long term, it might support further

office development.

The opportunity for office market investment and development within Orpington town centre is

intrinsically linked to the regeneration aspirations for the area. The need to ensure sustained (and

sustainable) economic growth within the area, including employment opportunities for local people is

of strategic importance. This local role is key; investment within Orpington should not seek to create

an offer that competes with the likes of Bromley Town Centre, but rather recognises its local service

provision and employment role in the context of its market town character, relationship with the

surrounding areas, and its scale.

With the current office accommodation within the centre being primarily above retail floorspace, with

some purpose built premises on Knoll Rise on the approach to the train station, the market is limited to

largely secondary quality and nature stock. However, this could be a market driver, relating

specifically to opportunities to promote small business growth in the future through the provision of

premises at lower rental values and with more flexible lease terms. The purpose built premises appear

to be quite dated but of a relatively good quality. Demand was identified for these premises, although

vacancy was noted on the site visits, suggesting sufficient capacity to accommodate this demand.

However, in this context Orpington remains a relatively good location for local occupier activity,

certainly given public transport connectivity and low rental values. There is arguably a two tier market

in the area, with a distinction between the nature of occupiers that are within the purpose built office

premises on Knoll Rise, and those that are located above ground floor retail premises. Specific small

LB Bromley Market Demand and Feasibility Report

2009 xiii

business potential, and linkages with those working from home in the local area is noted for Orpington

specifically.

KEY ACTIONS

The key actions for Orpington town centre emerging from this study are summarised below.

Table 3 – Orpington Town Centre – Summary of Actions

Summary of Action Time Frame

The Council should not seek to allocate significant new office floorspace development within Orpington

town centre within the Core Strategy. The Council should instead seek to encourage investment in existing

premises and redevelopment of existing premises within the core of the town centre. Policy should seek to

protect and encourage investment in existing office premises in the ‘town centre core’.

Ongoing

Council should seek to promote a positive planning approach to the conversation of office premises to

residential use outside of the town centre core in Orpington. A study into the existing stock, including

condition and scope for conversion, should be undertaken to test residential capacity and suggest areas

within the town centre where such an approach would be appropriate.

Short Term

The delivery of investment in the public realm, the College and other building works underway within the

town centre should be prioritised by the public sector. Short Term

Opportunities should be sought to promote initiatives including shop frontage investment, and in the short

term opportunities to encourage the temporary use of empty retail premises within the town centre for other

uses.

Short Term /

Medium Term

Potential for a ‘use on demand’ meeting / resource facility for small businesses / people working from

home should be considered including more detailed / targeted consultation with potential end users.

Short Term /

Medium Term

Advice should be provided by the Council to small businesses relating specifically to business rates

through appropriate / existing mechanisms and e.g. the Federation of Small Businesses. Short Term

LB Bromley Market Demand and Feasibility Report

2009 xiv

LB Bromley Market Demand and Feasibility Report

2009 1

1. INTRODUCTION & CONTEXT

BACKGROUND TO BRIEF

1.1 GVA Grimley Ltd have been commissioned by the London Borough of Bromley (LB Bromley)

to undertake market demand and headline viability (commercial market) testing for office

development / investment at three key sites / areas within the Borough: West Camp (Biggin

Hill); Cray Valley; and Orpington Town Centre. This is a follow on commission from the

Employment Land and Economic Development Study completed in March 2009.

1.2 The Employment Land and Economic Development Study (‘the Study’) was commissioned by

LB Bromley to underpin their Local Development Framework (LDF) and establish priority

actions for the Council and other partners over the medium and long term (to 2025).

1.3 The Study concludes that it will not be sufficient for LB Bromley to ‘rest on its laurels’ when it

comes to economic development over the plan period. There is an identified need for strategic

guidance to set out the economic objectives and investment across the Borough to 2025 and

beyond. The Study suggested an initial vision to be tested through further work and

consultation. The vision for the Bromley economy is suggested to be:

“A targeted approach to suitable investment will ensure the delivery of a sustainable economy

within LB Bromley; a green borough in every sense, where small businesses choose to stay

and grow, and major businesses choose to locate.”

1.4 The opportunity within the Bromley economy is clear, albeit it is compromised within the

immediate and short term economic climate (not unlike its counterparts and competitors). The

Borough is seen as an exporter of quality labour, reflected both in income levels, skills levels,

and the occupation profile of the resident based population. This suggests a latent opportunity

for economic activity of a high quality to be retained within the local area.

1.5 There are specific sector opportunities identified for Bromley including: Business and

Financial Services (primarily in the medium to long term given the current economic climate),

Transport and Telecommunications, Construction, High-Value Manufacturing, and Retail.

There is further potential identified within ‘knowledge-economy’ sectors suggesting an

opportunity to harness more of this value added activity within the local economy.

LB Bromley Market Demand and Feasibility Report

2009 2

1.6 However, within this context there are identified challenges to delivering economic objectives,

and indeed within the immediate and short-term retaining existing businesses within Bromley.

One of the most significant constraints was identified in the Study to be the current stock of

premises available and commercial market conditions in this context.

1.7 The office accommodation within the Borough, at headline level, is dominated by a poor

quality of stock and a lack of recent development. This stock profile, including the

predominance of ageing stock of questionable appropriateness for use by dynamic emerging

sectors, is identified to detract potential inward investors from the local economy. This

includes stock within both central and out-of-centre locations.

1.8 Whilst the main office location within the Borough is recognised to be Bromley, in terms of

existing stock and market activity (e.g. deals, take-up), a secondary office offer is identified

within both Beckenham and Orpington town centres including predominantly smaller

accommodation often above retail space. Both of these centres are recognised to have lower

levels of transactional activity.

1.9 The Study makes a series of employment recommendations in the context of this undersupply

of quality office accommodation across the Borough, including:

Consider opportunities for maximising the supply of new and improved office floorspace

and of retaining existing office uses wherever possible. Sites that are suited to delivering

smaller office developments alongside larger floorplates should be considered, within the

town centres particularly Orpington town centre and in locations proximate to the M25

including Ruxley and the Crays; and

Consider the future employment function of existing land at Biggin Hill airport. There is an

identified opportunity to promote high-value manufacturing activities at the airport, with

specific opportunity identified at South Camp, including the potential to promote a

balanced offer with some small-scale office development such as a potential business /

innovation centre.

1.10 Further to this, the Study makes a series of cross-cutting / strategic priorities for testing and

inclusion within any future Economic Development Strategy, including those relating to “Key

Sites, Sectors, Clusters, and Locations”:

Identify how the commercial floorspace aspirations within Orpington town centre can be

delivered;

LB Bromley Market Demand and Feasibility Report

2009 3

Undertake feasibility testing for a Business Centre / Small Business Park (B1a and B1b

uses) in the Biggin Hill and ‘East Bromley’ areas identifying cost, likely business base /

take-up, and timescales for delivery;

Implementation of employment land supply policies within the LDF including the

development and agreement of the criteria test for site use;

Maximise opportunities to use Local Transport Plan and strategic London Development

Agency / Transport for London investment programmes to support economic priorities;

and

Encourage the growth of key sectors and clusters; working with partners and reviewing

forecast and opportunities.

1.11 In this strategic context, LB Bromley have commissioned this piece of work to assess the

future demand for office development investment, and potential for attracting office and/or

business occupiers in the future, including both freehold and leasehold occupiers, within West

Camp (Biggin Hill); Cray Valley; and Orpington Town Centre.

1.12 The key outputs of the commission will be recommendations relating specifically to:

The market demand for offices in each of the locations and the potential scale of office

development (including size of units / likely type of occupier);

Whether the identified demand and potential supply or required interventions should be

viewed as short, medium or long term, and the phasing of any likely development; and

A suggested ‘Action Plan’ to take forward each of the sites including options, as

appropriate, including phasing, marketing and delivery mechanisms, including the

potential role for LB Bromley as part of this process.

APPROACH

1.13 Whilst there are commonalities within our approach to undertaking this study across the three

identified areas it is recongised that in each case there are specific nuances that need to be

captured. The distinctions between the three sites / areas considered in this report are

summarised below, followed by our general approach to undertaking the commission across

the three.

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West Camp, Biggin Hill

1.14 The Brief requires that specific consideration is given to the buildings within West Camp at

Biggin Hill Airport. The buildings within West Camp include, within the Conservation Area:

former Barracks, the Mortuary, Medical Centre and Decontamination Centre, Junior Ranks

Mess, Candidates Club and Hawkinge Barrack, the Guardroom, Garage Block, Reserve

Water Tank and Pump House, MT flight workshops and garages and supply flight workshops,

the Boiler House, Officer Aircrew Selection Centre, Station Headquarters, and Hanger

Remains and open area; and outside of the Conservation Area: Airside Hanger, Western

Taxiway and ‘North Area’ (a largely open area with two buildings onsite).

1.15 Within the established Planning Framework for West Camp, prepared for the site by LB

Bromley, the intention to retain and bring back into economic use (and thereby remove from

the Buildings at Risk Register) the listed buildings on the site, and to retain and re-use the

other buildings of historic interest is stated.

1.16 The market potential of this site, and the buildings on-site, must be tested in this context with

local agents and active developers including reviewing the appetite for business space of this

kind, at this location.

Cray Valley, ‘East Bromley’

1.17 The Cray Valley is noted to be an established commercial area, albeit recent development

and take-up activity has skewed the profile away from ‘traditional B-Use Class business’ uses

towards retail warehousing, in contradiction with the current local planning policy relating to

the area which resists additional retail development in the future.

1.18 The business activities within Cray Valley (including retail warehousing) is concentrated along

the A224, linking the A20 Sidcup Bypass at Saint Pauls Cray to the M25 via Saint Marys Cray.

Whilst the Borough in general is recognised to be relatively prosperous, this area and the

residential areas around it in particular is noted to suffer deprivation on a more significant

scale than elsewhere across Bromley according to the Index of Multiple Deprivation (2007).

1.19 The study should seek to test the potential (site and market appetite) for office activity

(development and occupier investment) with the Cray Valley and in this context the future role

and function of this area for employment purposes.

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Orpington Town Centre

1.20 Orpington is the Borough’s second largest town centre, behind Bromley town centre. It has

good transport connections to Central London including direct links to Charing Cross station in

as little as 26 minutes, and road connections to the M25 and M20 motorways.

1.21 There is a recognised existing office market offer (i.e. office premises) within Orpington town

centre although it is dominated by ‘secondary stock’ including above retail premises units

(albeit a number do have their own front door), with only limited stand-alone office

development identified.

1.22 The study should test the nature of office demand relating specifically to Orpington town

centre and the appropriateness of the existing office stock profile in the area in this context.

General Approach

1.23 There are four key stages to our approach in undertaking this commission, outlined briefly

below, following on from Project Inception.

Site Visits and Assessments

1.24 Site visits have been undertaken to each of the three sites / areas, supported by a

photographic record of key characteristics noted.

1.25 A different emphasis was placed on each site during the visits reflecting the different nature

and potential development / investment function of the respective areas outlined previously.

For both Cray Valley and Orpington this included the identification of potential development

sites where appropriate.

Revealed Market Demand

1.26 Identification of ‘market areas’ within which the respective areas ‘sit’, defined by postcode

sector boundaries for data collection purposes but also consideration of the characteristics of

the wider area, commercial stock profile, and commercial market observations.

1.27 Revealed market demand will be identified within the market areas including available

commercial (in this context office) floorspace (including observations on quality following site

visits), and take-up activity (including quantum, and rents and yields achieved based on

available data).

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Commercial Market and Key Stakeholder Consultation

1.28 Consultation with commercial agents who are active in the Borough and the three areas / sites

identified specifically, alongside developers and investors also active or that have shown an

interest in the past, alongside key public sector and business representatives has been

undertaken to test specifically the nature of the commercial market (including qualitative

perceptions, recent market activity, property requirements, and market capacity in the short,

medium, and long term).

Recommendations and Area ‘Action Plans’

1.29 Specific recommendations will include, for the three sites / areas:

West Camp, Biggin Hill:

Market demand (developed and occupier) and capacity / scope for managed business

park including advice on potential / appropriate size of units;

Sector specific opportunity (if any identified); and

Phasing and other investment considerations / actions required.

Cray Valley, East Bromley:

Market potential for an out-of-town business park style development in the area relative to

the market within Bromley and Orpington town centres (specifically testing the

complementarily of these market areas);

Sector or occupier specific opportunity (if any identified); and

Phasing and other investment considerations / actions required.

Orpington Town Centre:

Market appetite for office accommodation within Orpington;

Scope / need for enhancement of existing stock;

Development opportunity for office development (including potential additional floorspace

that could be brought forwards);

Interface / relationship between office market potential and regeneration aspirations for

the town centre; and

Phasing and other investment considerations / actions required.

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STRUCTURE OF REPORT

1.30 The remainder of this report is structured to consider the strategic context for office

development within the three sites / areas identified, and then the specific potential of each of

the three in turn (although no order of importance is implied):

Section Two: Strategic Policy Context – consideration of the policy context for office

development and investment from PPS4 (emerging) and PPS6, regional policy as outlined

within the London Plan, emerging policy context emerging from the Outer London

Commission, and local guidance within the adopted UDP, emerging LB Bromley Core

Strategy, and Area Action Plan for Bromley town centre.

Section Three: West Camp, Biggin Hill – including area context, site assessment, revealed

market demand, commercial and stakeholder observations, and recommendations / area

‘Action Plan’.

Section Four: The Cray Valley, East Bromley – including area context, site assessment,

revealed market demand, commercial and stakeholder observations, and recommendations /

area ‘Action Plan’.

Section Five: Orpington Town Centre – including area context, site assessment, revealed

market demand, commercial and stakeholder observations, and recommendations / area

‘Action Plan’.

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2. STRATEGIC POLICY CONTEXT

2.1 Any potential for office investment and development, within the three areas identified for

further investigation is set within the context of national, regional, and local existing and

emerging policy guidance.

2.2 This section provides an overview of the direction of this established and emerging policy

context, identifying in the process the key policy direction shaping office development in

Bromley.

National Planning Policy

2.3 Existing and emerging national planning policy clearly supports the need for Local Planning

Authorities (LPA’s) to support and promote economic development at the local level. Within

the emerging (Draft) Planning Policy Statement 4 Planning for Sustainable Economic

Development a “positive” approach to economic development is promoted, including the

Government’s desired objectives for:

A good range of sites identified for economic development and mixed-use development;

A good supply of land and buildings which offers a range of opportunities for creating new

jobs in large and small businesses as well as start-up firms and which is responsive to

changing needs and demands;

High quality development and inclusive design for all forms of economic development;

Avoiding adverse impacts on the environment, but where these are unavoidable,

providing mitigation; and

Shaping travel demand by promoting sustainable travel choices wherever possible.

2.4 Within Planning Policy Statement 6 Planning for Town Centres the Government states the

need to promote the vitality and viability of town centres through planning for the growth and

development of existing centres; and promoting and enhancing existing centres, by focusing

development in such centres and encouraging a wide range of services in a good

environment, accessible to all.

2.5 Other key objectives stated within PPS6 include the need to improve accessibility, ensuring

that existing or new development is, or will be, accessible and well-served by a choice of a

means of transport.

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2.6 PPS6 includes offices, both commercial and those of public bodies, as a main town centre

use, and there imposes sequential testing on such development uses prioritising urban centre

development above edge of centre or out of centre development. This has important

implications for office development outside of Bromley town centre in Biggin Hill, Cray Valley,

or Orpington respectively.

2.7 The Department for Communities and Local Government (DCLG) published a further draft

PPS4 Planning for Prosperous Economies. This document brings together Draft PPS4

(Sustainable Economic Development); PPG5 (Simplified Planning Zones); PPS6 (Town

Centres) and PPS7 (Sustainable Development in Rural Areas). This document is an initial

draft for comment.

2.8 Given the likely timing of any office development within West Camp, Cray Valley, and/or

Orpington this emerging policy is likely to represent key national guidance for economic

development uses to be taken into consideration. The new draft PPS4 continues in a similar

vain to the previous draft PPS4 in promoting flexibility when considering economic

development, the importance of clustering, rural economic growth, and underpinning all of this

deliverability.

Regional Policy Direction

2.9 Current regional planning policy for Greater London is established within the London Plan.

The London Plan recognises the importance of promoting sustainable (accessible, etc.)

development within its town centres, encouraging sustainable polycentric patterns of

development, and creating local sense of place, attractiveness and community alongside

other policy aspirations including vitality and vibrancy, and a mix of use.

2.10 In the context of Bromley, this promotes Bromley town centre as the main focus for town

centre activity, but recognises the importance of Orpington as a Major Centre. Bromley town

centre is identified within the London Plan as a Metropolitan Centre.

2.11 The London Plan includes a policy stance that seeks a range of premises of different types,

sizes and costs to meet the needs of different sectors of the economy and firms of different

types and sizes and to remove supply side blockages for key sectors, including the finance

and business services sector.

2.12 With regards to matching office demand and supply specifically, the London Plan seeks:

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Significant investment to current stock through change of uses and development of

vacant brownfield sites;

Renovation and renewal of existing stock to increase and enhance the quality and

flexibility of London’s office market offer, in line with policies for maximising the intensity

of development; and

The provision of a variety of type, size and cost of office promises to meet the needs of all

sectors, including small and medium sized enterprises.

2.13 The London Plan advocates that sub-regional partnerships and boroughs should:

Promote the provision of additional space and the rejuvenation of existing office space in

line with the other policies of the London Plan; and

Work with the LDA, investors, developers, land owners, and potential occupiers to bring

forwards development capacity as efficiently as possible co-ordinating their activities and

interests to avoid planning delays and facilitating site assembly, if necessary, through the

compulsory purchase process.

2.14 In the Bromley office development context this includes the promotion of town centre based

office quarters; mid-urban business parks; conventional business parks beyond the urban

area (which should become more sustainable); and more local, town centre based office

provision, which can be consolidated effectively to meet local needs, or where necessary

change to other uses.

2.15 Since publication of the London Plan there has been a change in Mayor within London,

bringing with it a change in policy focus for the Capital. The Mayor has established an Outer

London Commission (OLC) to advise how Outer London can play its full part in the City’s

wider economic success. It includes representatives of business, the boroughs, the

development industry, and the voluntary sector. It is envisaged that the OLC will report in

summer 2009 to feed into the London Plan review.

2.16 The OLC will explore how different parts of Outer London can better realise their economic

potential, especially its town centres, as well as opportunity and intensification areas and

industrial locations. The economic geography of London will be explored, including the

assessment of ‘growth hubs’ (a new type of business location being tested through the

Commission).

2.17 The future economic growth potential of LB Bromley is strongly linked to this emerging

agenda. The OLC is looking at structural weaknesses in Outer London that has seen

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employment growth (both absolute and value) lagging behind Inner and Central London and

the South East region, and what the main barriers to employment growth may be - transport

access, education, and skills.

2.18 It is also significant that nearby Croydon is being considered as a ‘super hub’ – a potential

future focus for economic growth across the Outer London area. The dynamic between

Bromley and Croydon is important within this context. Indeed it is important that Bromley

recognises its own economic drivers in this context (albeit not at the same scale in the

hierarchy as Croydon).

Local Policy Context

2.19 The Unitary Development Plan (UDP) for LB Bromley was adopted in July 2006, and under

the 2004 Planning and Compulsory Purchase Act was saved for three years, making it the

statutory planning document for development control purposes across the Borough until the

Core Strategy and other DPD’s forming the emerging Local Development Framework (LDF)

are adopted.

2.20 The UDP recognises that the Borough is an attractive location for businesses, with a pleasant

local environment, and easy access to the M25 and Central London (by road and rail). The

Council have a stated intention within the UDP to maintain a range of business

accommodation for all business types in ‘appropriate locations’ whilst encouraging the

provision of accommodation for small firms. The need to re-use existing floorspace including

redevelopment for mixed use where appropriate, alongside the promotion of a ‘business park’

environment within the Boroughs ‘Business Areas’, which include the three sites / areas

considered specifically within this study.

2.21 The development of accommodation for small firms is encouraged, as are the re-use of

existing floorspace within the respective centres, and the encouragement of travel intensive

business uses in appropriate town centre locations.

2.22 The planned investment within Bromley town centre (outlined in the Town Centre Area Action

Plan, Draft, envisaged to be formally adopted by the end of 2009) represents a key

opportunity for the Borough to enhance its profile and deliver a quality environment and

economic offer to promote sustainable growth.

2.23 The draft AAP includes policy justification for the development of identified key sites within the

town centre, with the objective, amongst others, of promoting economic growth and local

employment opportunities, increasing commercial floorspace and economic opportunities in

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2009 12

the town centre. It is envisaged that the investment outlined in the AAP, focusing primarily on

retail, leisure / culture, and residential development initially will result in an uplift in values

which should increase the viability of commercial office development in the medium to long

term.

2.24 Any office development outside of Bromley town centre will need to be considered in this

context, including the balance between sequential testing, phasing, and market demand /

appetite for development. It is important, linking into the wider economic development

agenda, that the various roles of functions of potential office locations are considered in terms

of their potential competing or complementary roles, and phasing including balancing the

protection / promotion of certain market areas alongside embracing developer and occupier

interest and delivering investment opportunities where they are recognised.

Summary of Policy Context

2.25 A number of key themes emerge from the policy context outlined previously within this

section. These include:

The importance of protecting the viability and vibrancy of town and urban centres through

the appropriate location of development, whilst recognising market opportunity in the

wider area, reflecting emerging policy guidance relating to rural economic potential

specifically;

The need to ensure that employment related (in this context office) investment is

strategically located in relation to transport infrastructure ensuring sustainability of

economic growth in the future, and also improving commercial marketability of sites and

developments in the future; and

The opportunity to recognise that there is a balance to be sought between appropriate

locations and property for small business activity / local and indigenous demand and

appropriate locations for inward investment locations and property. In this context

Bromley town centre is recognised as being a key strategic location, with potential for the

wider hierarchy of opportunity to reflect typologies of demand including small business

and non-traditional urban centre office uses (e.g. creative industries).

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3. WEST CAMP – BIGGIN HILL

3.1 This section relates specifically to the current nature of activity at West Camp, including the

site characteristics, specific commercial market (office) potential identified within the area,

business and occupier potential for future investment, and recommendations to promote

delivery of West Camp for commercial employment uses in the future.

3.2 Each of these facets of observation, analysis and advice are considered in turn in the

remainder of this section.

SITE ASSESSMENT

Current On-Site Uses / Structures

3.3 A Planning Framework for West Camp, Biggin Hill was finalised by LB Bromley in May 2007,

including a detailed consideration of specific sites (buildings) within West Camp. These are

summarised in the bullet points below.

Figure 2 – Existing Structure at Biggin Hill Airport (1)

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Figure 3 – Existing Structure at Biggin Hill Airport (2)

Figure 4 – Existing Structure at Biggin Hill Airport (3)

Sites within Conservation Area

3.4 The following sites are identified within the Planning Framework as being within a designated

Conservation Area.

Barrack Block buildings: Five Grade II listed buildings on Buildings at Risk Register – two

storey former accommodation blocks – most noted in the Planning Framework to be in a

poor state of repair, including some with water ingress through the roof. Estimated total

floorspace of 3,340 square metres.

Mortuary, Medical Centre and Decontamination Centre: Single storey linked buildings in a

good condition – not listed but considered to be of historic interest making a positive

contribution to the Conservation Area. Estimated total floorspace of 620 square metres.

Junior Ranks Mess, Candidates Club and Hawkinge Barrack: Grade II listed buildings in

generally good repair though some refurbishment required. The Hawkinge is single

storey, with the other buildings observed to be 2 storey. Estimated total floorspace of

2,210 square metres.

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Guardroom, Garage Block, Reserve Water Tank and Pump House: Modest, single storey,

altered buildings – not listed. Incorporates the current access to the site, and the existing

car parking area.

MT flight workshops and garages and supply flight workshops: Single storey workshop

buildings arranged around a courtyard which makes a positive contribution to the

Conservation Area – many buildings maintained in good condition, but with none listed.

Boiler House: Distinctive landmark building making a positive contribution to the area, but

not listed.

Officer Aircrew Selection Centre: Building of post war construction possibly in poor state

of repair – not listed and not making positive contribution to the area.

Station Headquarters: Two storey Grade II listed building in good condition – partly

refurbished. Estimated total floorspace of 620 square metres.

Hangar remains and open area: Remains of demolished wartime hangar and post war

shed – not listed and not making positive contribution although considered to be of some

historic interest. Open area to the south.

Sites Outside Conservation Area

Airside Hangar: Existing hangar in good condition with extensive apron and open areas

around.

Western Taxiway: Part of perimeter track for taxiing aircraft.

North Area: Largely open area with two buildings in fair condition (not listed), includes

small part of Conservation Area.

3.5 From site visit observation, the sites / buildings both within and outside of the Conservation

Area are not believed to be in active use currently or are not being utilised to their full

capacity/potential. The buildings are noted to be of a varied condition, and age, with some

noted to make historic and heritage contribution to West Camp, whilst others are of a modern

and less imposing / visually appealing nature.

3.6 The setting of the buildings, including simple but generally well maintained landscaped open

space and car parking areas is observed to be relatively good quality. The boundaries of West

Camp are well defined, and by-and-large intact, in the form of cast iron fencing around the

perimeter.

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Strategic and Local Access and Connectivity

3.7 Biggin Hill Airport is located off the A233 Main Road which to its further extremes links

Bromley town centre (via the B265) to the M25 motorway, running north-south through the

Borough.

3.8 The road network ensures the site is relatively accessible by car or lorry / HGV although

congestion is noted as a potential issue especially during peak hours for cars passing through

the area leaving or joining the M25 motorway.

3.9 The area is considered to be reasonably well served by public transport, although this is

limited to a bus route along the A233. The following bullet points outline the routes that pass

along this road or serve the local area:

Route 246: Bromley North Station to Warlingham Green / Chartwell – noted to be a high

frequency route.

Route 320: Bromley North Station to Biggin Hill Valley Rose Road – bus every 20

minutes.

Route 346: New Addington Parway to Tatsfield Ship – bus every 30 minutes.

Route 664: New Addington Homestead Way to Biggin Hill Charles Darwin School –

School service, leaves New Addington at 0728 arrives Biggin Hill Charles Darwin School

at 0810, leaves Biggin Hill Charles Darwin School at 1505 arrives New Addington at

1540.

3.10 Given its location within the grounds of Biggin Hill Airport, West Camp is seen to have

strategic national and international connectivity via air travel, albeit this is restricted to

business passenger travel rather than large scale passenger flights. The Airport remains a

key strategic asset however even in this limited passenger context, being a key point of entry

for business aviation flights to the wider London area.

3.11 Direct access to West Camp from the A233 Main Road is adjacent to the Guardroom, Garage

Block, Reserve Water Tank, and Pump House, around half way along the collection of

buildings.

Surrounding Land Uses

3.12 Biggin Hill Airport occupies a large proportion of the land formally used for the RAF Biggin Hill

Aerodrome. Adjacent to West Camp is South Camp, which includes the Biggin Hill Business

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Park and Airport Industrial Estate, both of which house a variety of businesses including some

linked to the airport industry. A new hangar is being developed within this area by Rizon Jet.

The hangar will offer maintenance and ‘high-end’ handling, as well as a charter service.

3.13 The hangar is expected to accommodate and service the needs of clients from Saudi Arabia

and the Gulf region, who will expect facilities including helicopter links, prestige car rental, and

chauffeur services.

Figure 5 – New Hanger Development at Biggin Hill (under construction)

3.14 To the east of the airport runway there are a number of uses including hangers, private flying

club facilities, a helicopter joy-riding centre, and a pilot training centre.

3.15 The Biggin Hill Airport Development Strategy states that there are a total of 63 companies

located at the airport, employing circa 1,091 staff. Evidence from the 2006 Airport Surface

Access Strategy suggests that a significant proportion of those employed at the Airport live

locally; as much as 5% of the economically active population within Biggin Hill ward are

employed by companies located at the Airport, with over half of those employed resident

within the Borough. Current development at the Airport, including the new hanger at South

Camp will include circa 100 additional jobs.

3.16 To the west of West Camp, over the A233, there is a new housing development currently

under-construction, including luxury family accommodation. This is in addition to existing

housing within the wider area, and some natural open space and landscaping.

Quality of the Wider Environment

3.17 The Airport lies within Biggin Hill ward. It is located to the northern edge of Biggin Hill itself, a

relatively large settlement to the south of the Borough. The wider environment of the airport

includes rural / agricultural land holdings, and a number of smaller residential settlements.

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3.18 The general area is recognised to be of a relatively high quality in this context, including a

local village setting to the north of the Airport at Leaves Green including a village green, and

local public house.

3.19 It is noted that amenity provision in the wider is relatively poor, with limited convenience retail

noted, although the housing profile is dominated by relatively high quality family housing

including a good degree of public and private open space provision.

Planning Policy Position

3.20 The Planning Framework, finalised by LB Bromley Council in May 2007, establishes principles

(predominantly relating to land use and the desired retention of buildings on the site) to guide

development control decisions and to facilitate appropriate development at West Camp. The

framework does not rely on expansion of the Airport, or any increase in flights.

3.21 In the LB Bromley UDP, the West Camp area falls within Area 1 of the Major Development

Site (MDS) in the Green Belt. Policy BH4 applies to Area 1, restricting development to airport-

related uses. The policy requires that proposals for development at West Camp:

Form part of a comprehensively planned development for the site;

Retain the open ‘campus’ nature of the site;

Facilitate the integration of the western taxiway into the Airport’s operational control; and

Preserve or enhance the character or appearance of the RAF Biggin Hill Conservation

Area.

3.22 Proposals for other land uses at Biggin Hill will only be considered where it can be

demonstrated that there is a lack of demand for airport related uses, resulting in potential long

term vacancy of the buildings, or where the use would contribute to the conservation and

historic interest of the area.

3.23 Although the MDS lies within the Green Belt, limited infill or redevelopment may be

considered appropriate forms of development provided it accords with relevant criteria.

3.24 The Planning Framework also lists other policies within the UDP, London Plan, Conservation

Area Supplementary Planning Guidance document, and national policy guidance which are

relevant to future development at West Camp.

3.25 The Framework states that residential uses are considered to be unsuitable at West Camp as

a result of noise guidelines set out in PPG24, and ‘other factors’ indicating a ‘poor residential

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2009 19

environment’. Uses that are likely to generate a large number of visitors are also considered

to be unsuitable on traffic generation grounds.

3.26 West Camp falls within a Safeguarding Zone wherein all proposed development must be

referred to the Airport for consideration as to whether new buildings affect the Obstacle

Limitation Surface. This has not been identified through liaison with the Council as being a

significant constraint to investment in the existing buildings at West Camp.

3.27 The Framework suggests possible uses and development principles for the sites within West

Camp, including those within and outside the Conservation Area. The suggested possible

future uses are summarised in Table 4.

Table 4 – Possible Future Uses of Buildings

Building / Site Suggested Possible Use

Barrack Block buildings Business (B1) uses as part of managed business park; non residential

institutions (D1)

Mortuary, Medical Centre and

Decontamination Centre

Medical Centre: Business (B1)

Decontamination Centre: Storage (B8); non residential institutions (D1)

or use requiring enclosed space e.g. music studios, archive storage

Junior Ranks Mess, Candidates Club

and Hawkinge Barrack

Business (B1) uses and/or non residential institutions (D1)

Guardroom, Garage Block, Reserve

Water Tank and Pump House

Workshop (B1); storage (B8); and/or non residential institutions (D1)

MT flight workshops and garages and

supply flight workshops

Workshop (B1); storage (B8); and/or non residential institutions (D1)

Boiler House Possible small display space and viewing area

Officer Aircrew Selection Centre Heritage Centre

Station Headquarters Office / business use (B1); and/or non residential institutions

Hangar remains and open area Retention preferred

Airside Hangar Airport related hangar use

Western Taxiway Track for taxiing aircraft

North Area Airport related use requiring airside access (preferred) and/or office /

business use / workshop (B1) and car parking

Source: West Camp Planning Framework, October 2007

3.28 It is understood that there is also potential within the existing buildings for a café and similar

facilities, most likely as part of / in proximity to any future Heritage Centre (within the officer

Aircrew Selection Centre).

3.29 The Planning Framework advocated predominately B1 office activity in a number of the

buildings with a gross floorspace capacity of in excess of 4,800 square metres for this use.

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REVEALED MARKET DEMAND

3.30 Quantitative analysis has been carried out with regard to revealed demand for office

floorspace. Revealed demand is measured primarily by take-up activity. This looks at the rate

at which ‘completed’ property is occupied, along with the rate of occupation of available or

‘second hand’ property.

3.31 It is important to note that this analysis intrinsically reflects, and is constrained, by current

economic conditions and climate, and is therefore not fully representative of longer term

trends, requirements and opportunity. However, for the purposes of this study and the nature

of the market in this location, it is felt that this approach is sufficient to present headline levels

of revealed demand.

3.32 Given the focus of this commission on the potential for office development within West Camp

the analysis of revealed market is concentrated on the office market. To focus analysis on the

Biggin Hill area specifically a ‘market area’ has been identified, through consideration of

postcode sectors covering the area, and consultation with commercial market agents. Data

has been obtained for this Biggin Hill market area.

3.33 The Biggin Hill market area is defined by the postcode sector TN16 3, illustrated in Figure 6.

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Figure 6 – Biggin Hill Market Area: Geography of Definition

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2009 22

3.34 Table 5 illustrates the take up of B1 office floorspace within the market area since 2003. A

total of 11,875 square feet / 1,105 square metres of B1 office floorspace has been taken up

within the area over this period, with the majority focused in provision along Main Road,

including over 4,000 square feet / 400 square metres within the Concorde Business Centre.

3.35 The majority of the take-up of within the market area was focused in second hand floorspace /

premises, comprising over 60% of total take-up during the period (7,545 square feet / 702

square metres). This is reflective of the low level of development in the area over the period

skewing the available stock profile.

3.36 Data relating to the length of time the floorspace was marketed before being taken up is

presented where it is available. For premises where data is available (i.e. excluding the

second noted transaction for 216-218 Main Road), all of the floorspace was marketed for over

a quarter of the year, including in the case of the take-up at Concorde Business Centre over

200 days on the market. This is considered to be a significant period of marketing and

suggests weakness within the strength of the market (albeit linked to current stock profile as

previously noted).

Table 5 – Office Take-Up in Biggin Hill Market Area

Address

Days on

market Grade

Size

SqFt

Size

SqM

146

Main Road

Biggin Hill

TN16

3BA 105

New or

Refurbished 1,880 175

146

Main Road

Biggin Hill

TN16

3BA 105

New or

Refurbished 1,360 126

180

Main Road

Biggin Hill

TN16

3BB 197

Second

Hand 1,745 162

184

Main Road

Biggin Hill

TN16

3BB 153

New or

Refurbished 814 76

216-

218

Main Road

Westerham

TN16

3BD 91

Second

Hand 716 67

216-

218

Main Road

Westerham

TN16

3BD - Not known 276 26

Unit

500

Churchill

Way

Biggin Hill

Aerodrome Biggin Hill

TN16

3BN 197

Second

Hand 674 63

Spitfire

House

Main

Road

14 Concorde

Business Centre Biggin Hill

TN16

3YN 237

Second

Hand 2,010 187

Spitfire

House

Main

Road

14 Concorde

Business Centre Biggin Hill

TN16

3YN 221

Second

Hand 2,400 223

Source: EGi, April 2009

LB Bromley Market Demand and Feasibility Report

2009 23

3.37 The majority of office take-up within the area has been dominated by smaller premises when

measured in terms in absolute numbers of transactions recorded. Specifically of the nine

transactions recorded, a total of seven were premises sized under 185 square metres, with an

annual average take-up of 70 square metres over the period.

3.38 There was no take-up of office premises above 465 square metres recorded over the period,

although this may have been constrained by the property on offer.

Table 6 – Take-Up by Unit Size

Size Band (Square Metres) Count Average Annual Take Up

<185 7 70

185-465 2 104

465-1850 0 0

>1850 0 0

Source: EGi, April 2009, manipulated by GVA Grimley, April 2009

3.39 The average rent achieved (based on asking rent data) in office market transactions within the

market area in the nine transactions recorded since 2003 was £119 per square metre

compared to average of between £86 and £215 across Bromley as a whole as quoted in the

Economic Development and Employment Study (with the range reflecting the low and high

rental levels quoted).

3.40 Where rental levels achieved were obtainable, it is clear that asking rents were higher for

smaller premises, suggesting higher demand and/or lower quantum of supply of this type of

premises in the area.

Table 7 – Rents Quoted

Address Grade Size SqM

Asking Rent

(£ per Sq M)

146 Main Road TN16 3BA New or Refurbished 175 113.99

146 Main Road TN16 3BA New or Refurbished 126 119.49

180 Main Road TN16 3BB Second Hand 162 Not Known

184 Main Road TN16 3BB New or Refurbished 76 128.93

216-218 Main Road TN16 3BD Second Hand 67 Not Known

216-218 Main Road TN16 3BD Not known 26 Not Known

Unit 500 Churchill Way TN16 3BN Second Hand 63 162.91

Spitfire House Main Road TN16 3YN Second Hand 187 96.4

Spitfire House Main Road TN16 3YN Second Hand 223 89.67

Average 123 118.565

Source: EGi, April 2009

LB Bromley Market Demand and Feasibility Report

2009 24

3.41 Table 8 illustrates the current availability of office floorspace within the market area (at the

time of writing). There is only one premises currently being marketed within the area, Unit 10

at 160 to 166 Main Road, which is noted to be a small unit.

Table 8 – Current Availability of Office Floorspace

Address

Date First

Marketed

Asking

Rent (£) Size (sq ft) Size (sqm)

Unit 10 160 - 166 Main Road, Biggin Hill 11/03/2009 14000 pa 778 72.3

Source: EGi, April 2009

COMMERCIAL MARKET OBSERVATIONS

3.42 Consultation has been undertaken with local commercial market agents, developers, and

business stakeholders to establish qualitative perceptions of the commercial (office) market

potential at Biggin Hill Airport, and West Camp specifically. The consultation has focused on:

The qualitative nature of the commercial market in each of the identified market areas;

Recent development activity including occupation rates, rents achieved, etc;

Potential occupiers based on recent and perceived market trends (including small

business occupiers);

Enquiry levels across a range of business sizes;

Property requirements (including size, building layout / relationship with wider

environment etc, car parking, infrastructure including broadband etc) of potential

occupiers including consideration of larger and smaller business investment

opportunities; and

Perceived market capacity in the short, medium and long term.

3.43 It is important to note that the current commercial market is experiencing a general slow down

in transactional activity across all sectors, but importantly in the context of this study the office

market has been hit particularly hard. This is particularly pertinent when considering the need

to bring forward new premises for office activity whilst vacancy exists in the market including

in Central London, Canary Wharf, and other locations closer to West Camp, leading to falling

rents for this type of activity.

3.44 As a result the general tone of observations from agents and developers is relatively negative,

certainly compared to what it might have been two-years ago. This is an important phasing

consideration across all of the three areas considered within this study with opportunity for

LB Bromley Market Demand and Feasibility Report

2009 25

office development likely to be stronger in the medium to long term (i.e. in the next 10 to 20

years). Considerations such as potential catalysts that may drive the market are significant to

developing an office market in these locations.

3.45 The agents consulted as part of this study all stressed the difficulty in making a reliable

assessment at present due to the recession and the fact that the commercial property

transactional market is so inactive, with few recent deals. Where developments are coming

forward, a greater degree of certainty is sought, with design and build and owner-occupier

schemes more prevalent than speculative activity, again a trend evidenced outside of LB

Bromley as well as within.

3.46 Opinions amongst commercial agents consulted differed as to the potential of West Camp, but

there was consensus as to the following constraints for any office market:

The area suffers from poor public transport, with no train or satisfactory bus service, and

unremarkable road links. Any office development would therefore require significant

parking provision, and/or improvements to bus services.

There is a lack of amenities around West Camp, with Biggin Hill itself too far to walk to.

Office occupiers, including the support staff required for serviced offices, would require

more immediate amenities such as cafes, newsagents etc.

The listed buildings and location within a Conservation Area and the Green Belt places

major constraints on the freedom and scale for redevelopment. It is noted that there will

be a requirement to retain the listed buildings on the site as part of any future

development which may restrict open/general developer interest in any future investment

opportunity at West Camp..

The potential for an office development is restricted by competition from nearby office

markets, which include serviced provision. Such locations, including Bromley town centre

and other centres such as Croydon for example, and out of centre developments across

Kent and the wider South East, offer superior transport links and amenities and there is

currently noted vacancy in all locations, with correspondingly low or falling rents.

3.47 Agents consulted commented that the office product is currently poor in Biggin Hill, with no

purpose built space due to poor public transport and amenities, and the resulting low rents

(currently around £8-£10 psf) which make development unviable within West Camp.

LB Bromley Market Demand and Feasibility Report

2009 26

3.48 However, despite the negative sentiments, some agents noted that there are positive

attributes which suggest potential in the area. These were in particular championed by the

developer Capital Enterprise Centres, a company which is known to have expressed an

interest in investment in West Camp to include B1 office floorspace provision. Such attributes

included the following:

The proximity to Biggin Hill airport is a major positive factor. It was noted however that

whilst the airport might be growing, it remains restricted to private business travel rather

than general commercial flights, and therefore there are doubts as to how great an

opportunity it presents to non-airport related businesses.

In terms of airport related business, some agents, and the developer Capital Enterprise

Centres specifically, the proximity to the airport presented a good opportunity for small

offices. The provision of larger offices is perceived to be hampered by the lack of public

transport and amenities. It should be noted that one agent cautioned that there is already

surplus space at and immediately around the airport, but others explained that such space

was for workshop type uses rather than offices.

Capital Enterprise Centres, (CEC) in particular argued that there is a shortage of office

space for airport related businesses at Biggin Hill and that opportunities to expand are

restricted due to the boundary of the Green Belt. Re-use of the existing buildings of West

Camp for office uses therefore present a good opportunity to meet latent demand. CEC

identified during consultation the perceived success of its business centre development at

Kings Hill in Kent which has similarly refurbished Grade II listed buildings. It now provides

serviced small office accommodation ranging from 75 to 1400 sqft, notably advertised

“with ample free parking”. Part of the rationale for the Kings Hill centre was to assist start

up companies, and CEC explained that they envisage a similar formula also working at

Biggin Hill, pointing out that West Camp has the significant added advantage of locational-

specific demand from airport related businesses. The interest from CEC should give

confidence to the Council relating to market appetite for investment in West Camp for

business uses.

It was also noted that the attractive location and historic character might appeal to certain

small businesses choosing where to locate their offices, but that such occupiers might

prefer the offer of a freehold premises with its “own front door”. The need for sufficient

parking space was again stressed.

LB Bromley Market Demand and Feasibility Report

2009 27

RECOMMENDATIONS

3.49 From analysis of revealed office market demand the Biggin Hill market area is identified to be

largely secondary in nature, with a stock profile largely dominated by second hand premises

rather than new build, with a resulting relatively low level of transactions recorded and rents

achieved in recent years. There is a generally observed skew towards smaller premises in the

area, although commercial market consultation suggests that this is not out of line with the

nature of demand currently and potentially in the future within the area.

3.50 The identified key constraints or 'blockages' to the current office market potential of the site

include:

The perceived poor public transport links to the site (including the lack of train

connectivity, although the Airport itself is noted to give strategic connectivity to the site)

and issues with road capacity and car parking restricting any significant employment use

within West Camp;

The lack of supporting amenities in the immediate area, for example the lack of cafe for

potential future employees (albeit such a use could be promoted on the site as part of a

wider mix, including within any future visitor centre for example);

On-site planning constraints including the Conservation Area designation and potential

need to retain / restore a large number of the structures on the site, albeit the historical

nature and setting of some of the buildings could be recognised conversely to be a

distinct selling point for West Camp; and

Competition from more established office locations, including Bromley town centre and

out-of-town office developments in the wider area, with vacancy noted in the former, and

by-and-large a higher quality offer and setting in the latter.

3.51 However, despite these identified constraints there is recognised office market potential for

Biggin Hill, and West Camp in particular, albeit on a relatively small scale (including smaller

unit sizes) and as part of a wider investment in West Camp that should see buildings

converted or redeveloped (where appropriate) for uses that would complement / support office

employment. There may be a need to allow a mix of uses on the site, or small scale infill

development to enable/facilitate B1 office provision in West Camp including serviced small

business space specifically.

LB Bromley Market Demand and Feasibility Report

2009 28

Figure 7 – Example of Conversion of Barrack Buildings for Office Use (Adastral Park, Suffolk) (1)

Figure 8 - Example of Conversion of Barrack Buildings for Office Use (Adastral Park, Suffolk) (2)

3.52 Particular market opportunity is identified on the basis of:

Close proximity to Biggin Hill Airport which is considered to be a major positive driver.

Particular market interest has been identified on the basis of growth of businesses

associated with the airport, and their need for space to accommodate administrative staff

requirements, etc, as well as businesses that would choose to locate close to an airport

that provides business travel opportunities and lower cost office accommodation within an

interesting and high quality setting. There is an identified shortage of office floorspace of

a good quality around the Airport, with most existing floorspace and employment

allocations skewed towards workshop / general B2/B8 employment uses; and

The restrictive nature of the Green Belt in the area for wider development of office

provision in the market area, or in proximity to the M25 within the LB Bromley border. This

promotes the opportunity at West Camp for office activity to tap into latent potential.

3.53 A number of key recommendations for office development at West Camp, Biggin Hill, are

drawn from this analysis. These have been developed on the basis of our analysis, and

community and key business stakeholder consultation undertaken, and are summarised

below:

LB Bromley Market Demand and Feasibility Report

2009 29

The office market opportunity at West Camp, Biggin Hill is concluded to be linked

primarily to business activity at the airport, although its future potential for office

employment levels is not perceived to be dependent on the growth of the Airport. The

analysis undertaken has identified market demand for a business park at West Camp,

Biggin Hill. Whilst the financial viability of the scale and mix of development proposed

within the Planning Framework has not been tested as part of this study, the

consultations undertaken suggest that this scheme is realistic. The recognised developer

(operator) interest in the site for business park use is testament to this. The Council

should look to further explore the detailed financial viability of the scheme with interested

parties.

The maximum potential B1 office floorspace identified within the Planning Framework

(2007) should seen be seen as the maximum capacity for the site (circa 4,820 square

metres). The Council should be promoting a balance between serviced / managed office

floorspace and 'own-front-door' freehold opportunities, with an appropriate mix ensuring

choice for start ups and established businesses. This should include the retention of

listed buildings on the site, and potential development on Site L and infill on Site D (as

identified in the Framework). Any development should not impact detrimentally on the

existing buildings, and seek to improve the investment environment in West Camp.

A range of sizes of individual units should be promoted, from start-ups sub-50 square

metres to larger units of circa 500 square metres, to facilitate investment by small to

medium sized businesses currently under-provided for in the local area. Whilst specific

opportunity has been identified for investment by occupiers linked to the airport it is

unlikely that any floorspace provision would be solely taken up by this type of activity.

Whilst the floorspace should be promoted as offering this advantage to ensure maximum

potential in this context, occupiers should not be limited to these airport-related uses.

In the event that developers bring forwards more detailed proposals for West Camp that

reduce office quantums significantly or drop the use altogether, the Council should seek

detailed proof of lack of viability (development appraisals). This viability test should take

into account the potential to phase the office development after other investment on the

site.

Opportunities to 'unlock' the potential at West Camp, Biggin Hill should be sought

including future public transport provision, a positive planning position regarding an

appropriate and enabling mix of uses on the site (not including residential development)

and local area including convenience retail (within West Camp potentially as part of visitor

centre), and opportunities for road capacity and car parking enhancements. There may

be a need to allow small scale infill development to enable B1 office provision at West

LB Bromley Market Demand and Feasibility Report

2009 30

Camp with a particular focus on serviced / managed small business space. Development

should only be permitted in this context where it is proven to not have detrimental impact

on the character of West Camp including the Conservation Area and listed buildings

specifically.

Summary of Actions

3.54 The key actions for West Camp, Biggin Hill emerging from this study are summarised below.

Table 9 – Biggin Hill – Summary of Actions

Summary of Action Time Frame

Continued liaison between Council and interested parties at West Camp, Biggin Hill including the

need for potential investors to justify need for enabling development if proposing to diversify from

the Planning Framework significantly2

Immediate

The Council should seek to investigate ways to ‘unlock’ the potential at West Camp, Biggin Hill

including potential investment in public transport provision and highways access to the site,

although S106 expectations should be considered in the context of the need to maintain the

viability of private sector investment in West Camp to deliver the aspirations within West Camp.

Ongoing

The Council should seek to ensure a positive planning position within the Core Strategy relating

to West Camp including the promotion of B1(a) business park uses, investment in listed buildings

and their setting, and supporting amenity / visitor provision (but not residential development).

Short Term

2 It is recommended within this study that there is minimal need for enabling and/or infill development to make delivery of B1(a)

development in this area viable, although opportunities for supporting and visitor provision should be sought.

LB Bromley Market Demand and Feasibility Report

2009 31

4. THE CRAY VALLEY, EAST BROMLEY

4.1 This section relates to the current nature of business activity at the Cray Valley area of East

Bromley. It considers the area’s characteristics, specific commercial market (office) potential

identified within the area, business and occupier potential for future investment, and sets out

recommendations to promote the delivery of future development at Cray Valley for

commercial (office) employment uses.

SITE ASSESSMENT

Current On-Site Uses / Structures

4.2 The Cray Valley is a corridor of varied land uses, including traditional and non-traditional

employment uses (with non-traditional dominated by retail warehousing that is seen to have

eroded the established business corridor along the A224 Cray Avenue / Sevenoaks Way in

recent years). Traditional and non-traditional employment uses are mostly clustered at the

junction of the A224 with the railway running east-west through the area, with St Pauls Cray to

the north of the railway line and St Mary Cray to the south.

4.3 The employment activities within the centre of the area, clustered around the main road, are

dominated by large ‘shed’ developments, with relatively poor frontage to the road including car

parking at key junctions / sites.

4.4 The buildings are, however, observed to be of a relatively good quality (albeit detailed surveys

of condition have not been undertaken as part of this study). There are few ‘pure’ office uses

or buildings observed within the area at the current time, with office provision concentrated in

the main to stock in the northern part of the area – around Main Road and New Mill Road.

4.5 This stock is observed to have limited availability (i.e. vacancy), benefiting from on-site

landscaping / buffering and car parking at an appropriate level.

LB Bromley Market Demand and Feasibility Report

2009 32

Figure 9 – Existing Structures in Cray Valley Business Area (1)

Figure 10– Existing Structures in Cray Valley Business Area (2)

Figure 11 – Existing Structures in Cray Valley Business Area (3)

Figure 12 – Existing Structures in Cray Valley Business Area (4)

LB Bromley Market Demand and Feasibility Report

2009 33

Strategic and Local Access and Connectivity

4.6 Connectivity to Cray Valley is relatively good, including rail links via St Mary Cray Rail station

to Bickley and Bromley South (with strategic links to London Victoria) to the west and

Swanley, Farningham, Longfield, to Rochester, Chatham and beyond to the east. Trains from

St Mary Cray to Bromley South run every twenty minutes, and trains from St Mary Cray to

Chatham run every half an hour.

4.7 Bus connectivity to the Cray Valley is illustrated within Tables 6, 7, and 8 below. Bus links are

good, linking to residential areas in Bromley, but also beyond Bromley towards Central

London.

4.8 The service provision is considered to be relatively good, although it is noted that the majority

of services are ‘local’ in the Bromley context, with most linking Orpington to wider areas

passing through the Cray Valley. Links to Bromley South and areas to the west are not as

strong.

Table 10 – Daily Buses from St Mary Cray

Route Number Towards Peak Time Frequency

51 Orpington / Woolwich Roughly between 7 and 11 minutes

477 Bluewater Shopping Centre / Orpington Roughly every 30 to 50 minutes

B14 Bexley Heath Shopping Centre / Orpington Roughly every 30 minutes

R1 Green Street Green / St Pauls Cray Roughly every 15 minutes

R2 Biggin Hill Valley 4 / Petts Wood Roughly every 30 minutes

R4 Locksbottom via Orpington / Pauls Cray Hill Roughly every 20 minutes

R6 Orpington Roughly every 30 minutes

R11 Green Street Green / Sidcup Roughly between 15 and 20 minutes

Source: Tfl, 2009

Table 11 – Night Buses from St Mary Cray

Route Number Towards Peak Time Frequency

N47 Trafalgar Square Roughly every 20 minutes

Source: Tfl, 2009

Table 12 –Daily Buses from St Pauls Cray

Route Number Towards Peak Time Frequency

B14 Bexley Heath Roughly every 30 minutes

R1 Green Street Green / Grovelands Roughly every 15 minutes

R11 Green Street Green / Sidcup Not available

Source: Tfl, 2009

LB Bromley Market Demand and Feasibility Report

2009 34

4.9 Both local and strategic road connectivity to the area is good. The A224 links between the

A20 Sidcup Bypass (in the north) and the A21 Sevenoaks Road (in the south), both of which

have direct connectivity to the M25 motorway to the east. The A224 is also a feeder road for

settlements to the east and west.

Surrounding Land Uses

4.10 In its wider context this area is surrounded by residential development dating from the post-

war period, with open space / agricultural land holdings in the wider hinterland including the

Ruxley Park Golf Centre. The housing is noted to be of varied quality, similar to the Borough’s

stock profile of family housing. The offer is dominated by two-storey, medium density

developments.

4.11 There are large expanses of rural land (Green Belt) to the east, stretching to Crockenhill, and

the M25. This area is of a relatively high quality, including some smaller settlements. South of

the Cray Valley is Orpington town centre, and to the west Petts Wood. Both settlements are

of a significant size in terms of their population and in the case of Orpington, its service centre

role and function.

Quality of the Wider Environment

4.12 Given its proximity to a number of relatively large residential areas, and also in the wider

context Green Belt surroundings, the quality of the environment in which the Cray Valley is

located is reasonable although varied.

4.13 Some of the housing areas within close proximity to the main corridor of business activity in

the Cray Valley are of mixed quality. This accommodation is largely existing or past Local

Authority housing stock, with varied levels of investment due to assumed pepper-potting of

Right to Buy activity in the past. Index of Multiple Deprivation (2007) data suggests there are

relatively high levels of deprivation in this area (particularly in the environmental domain),

relative to LB Bromley as a whole.

4.14 The rural Green Belt areas to the east are observed to be of higher quality, including smaller

residential settlements of large family housing in low density settings.

4.15 Orpington town centre to the south is of mixed quality, with some historic features to the

western end, but observed decline in the core of the high street. New development and

investment is, however, taking place within the town centre including at Orpington College, a

new Village Centre at the western end of the high street, and a new Tesco superstore, also at

LB Bromley Market Demand and Feasibility Report

2009 35

the western end which opened in May 2009. There is also a masterplan in place to guide

investment in the public realm within the town centre.

Planning Policy Position

4.16 The Adopted UDP includes a series of relevant allocations for the Cray Valley, including and

investment those summarised below. These all have a site specific bearing on the future

development potential within the area for office purposes.

4.17 The main stretch of Cray Avenue / Sevenoaks Way where business activity (including

traditional and non-traditional employment uses) is identified in the UDP to be a ‘Business

Area’. Under Policy EMP4 of the UDP, within Business Areas, only the following uses will be

permitted:

(i) Class B1, provided that the use does not impede effective operation of neighbouring

businesses and large new office meet the provisions of Policy EMP1;

(ii) Class B2; or

(iii) Class B8; large scale warehousing development over 1,000 square metres will be

permitted only in the St Mary Cray Business Area.

4.18 Within the Policy Justification, it is recognised that the St Mary Cray Business Area is

identified in the London Plan as an Industrial Business Park. Proposals detrimental to the

amenities of adjoining residential areas, however, by reason of noise, vibration, smell, fumes,

smoke, soot, ash, dust or grit, will be resisted in this area.

4.19 Although the Policy Justification suggests that proposals for retail uses within Business Areas

will normally be resisted, as a result of demand for business premises and the suitable supply

of land being limited, it is evident that retail warehousing activities have ‘crept’ into the Cray

Valley area, and the St Mary Cray Business Area particularly.

4.20 The Cray Valley business area is located adjacent to a Conservation Area (covering a portion

of Millbrook Road to the east). Under Policy BE11 the character or appearance of

Conservation Areas are preserved through the expectation of new development, engineering

works, alteration or extension to a building, or for change of use to:

(i) Respect or complement the layout, scale, form and materials of existing buildings and

spaces;

LB Bromley Market Demand and Feasibility Report

2009 36

(ii) Respect and incorporate in the design existing landscape or other features that

contribute to the character, appearance or historic value to the area; and

(iii) Ensure that the level of activity, traffic, parking services or noise generated by the

proposal will not detract from the character or appearance of the area.

4.21 The area also falls within a designated Area of Archaeological Interest, as identified on the

UDP Proposals Map.

4.22 The Business Area is adjacent to designated Green Belt. As stated in the Adopted Local Plan

Policy G1, within the Green Belt…permission will not be given for inappropriate development

unless very special circumstances can be demonstrated that clearly outweigh harm by reason

of inappropriateness or any other harm.

4.23 Within the Green Belt, the construction of new buildings or extensions to buildings on land

falling within the Green Belt will be inappropriate, unless it is for the following purposes:

(i) agriculture and forestry (unless permitted development rights have been withdrawn);

(ii) essential facilities for outdoor sport and outdoor recreation and open air facilities and

other uses of land which preserve the openness of the Green Belt and do not conflict with

the purposes of including land in it;

(iii) limited extension, alteration or replacement of existing dwellings;

(iv) limited infilling or redevelopment in accordance with the guidance in PPG2 Annex C

within the designated major development sites at Biggin Hill Airport and Cheyne Centre,

Woodland Way, West Wickham.

4.24 The policy further states that the openness and visual amenity of the Green Belt shall not be

injured by any proposals for development within or conspicuous from the Green Belt which

might be visually detrimental by reasons of scale, siting, materials, or design.

4.25 The policy within the LB Bromley Adopted Local Plan is in line with both the London Plan and

PPG2 in stating that there is a presumption against inappropriate development within the

Green Belt unless very special circumstances can be demonstrated (PPG2, para 3.2).

4.26 The Business Area is also buffered in a number of places by designated Urban Open Space.

Within Policy G8 (Urban Open Space) it is stated that proposals for built development in areas

defined on the Proposals Map as Urban Open Space (UOS), will be permitted only under the

following circumstances:

LB Bromley Market Demand and Feasibility Report

2009 37

(i) The development is related to the existing use (in this context, neither residential nor

indoor sports development will normally be regarded as being related to the existing use);

or

(ii) The development is small scale and support the outdoor recreational uses or

children’s play facilities on the site; or

(iii) Any replacement buildings do not exceed the site coverage of the existing

development on the site.

4.27 Within Urban Open Space, where built development is involved; the Council will weigh any

benefits being offered to the community, such as new recreational or employment

opportunities, against a proposed loss of open space. In all cases, the scale, siting, and size

of the proposal should not unduly impair the open nature of the site.

REVEALED MARKET DEMAND

4.28 Quantitative analysis has been carried out with regard to revealed demand for office

floorspace. Revealed demand is measured primarily by take-up activity. This looks at the rate

at which ‘completed’ property is occupied, along with the rate of occupation of available or

‘second hand’ property.

4.29 It is important to note that this analysis intrinsically reflects, and is constrained, by current

economic conditions and climate, and is therefore not fully representative of longer term

trends, requirements and opportunity. However, for the purposes of this study and the nature

of the market in this location, it is felt that this approach is sufficient to present headline levels

of revealed demand.

4.30 Given the focus of this commission on the potential for office development within the Cray

Valley the analysis of revealed market is concentrated on the office market. To focus analysis

on the Cray Valley area specifically, a ‘market area’ has been identified, through consideration

of postcode sectors covering the area, and consultation with commercial market agents. Data

has been obtained for this Cray Valley market area.

4.31 The Cray Valley market area is defined by the postcode sector BR5 3, illustrated on Figure

12.

LB Bromley Market Demand and Feasibility Report

2009 38

Figure 13 – Cray Valley Market Area: Geography of Definition

LB Bromley Market Demand and Feasibility Report

2009 39

4.32 Table 13 illustrates the take up of B1 office floorspace within the market area since 2003. A

total of 13,730 square feet / 1,274 square metres of B1 office floorspace has been taken up

within the area this period, with a split between that in Orpington and that in St Mary Cray

albeit primarily focused in the Orpington area (i.e. at New Mill Road to the north of Cray Valley

market area).

4.33 Take up in the north of the market area totalled over 80% of total take up within the whole

market area over the period.

Table 13 – Office Take-Up in Cray Valley Market Area, 2003 - 2009

Address

Days on

market Grade

Size

SqFt

Size

SqM

62a-64a Sayes Court Rd Orpington BR5 2PQ 342 Second Hand 950 88

83 High Street St Mary Cray BR5 3NH 100 Second Hand 1,121 104

53 High Street St Mary Cray BR5 3NJ 177 Second Hand 1,092 101

13-15 High Street St Mary Cray BR5 3NL 227 Second Hand 355 33

Kingfisher Hse New Mill Road Orpington BR5 3QG 1024 Second Hand 2,409 224

Kingfisher Hse New Mill Road Orpington BR5 3QG 400 Second Hand 680 63

Osprey Hse New Mill Road Orpington BR5 3QJ 133 Second Hand 5,850 543

1 Lagoon Road Orpington BR5 3QX Not known Second Hand 1,273 118

Source: EGi, April 2009

4.34 All of the take-up within the market area over the period was of second hand premises. Where

data is available, it is clear that office floorspace was marketed for significant periods of time

before being taken up. In the case of the 224 square metres taken up at Kingfisher House this

was marketed for over two and a half years before being let.

4.35 The majority of floorspace taken up was within premises sized below 185 square metres,

including six of the eight transactions recorded. There was no take up of office premises sized

above 1,850 square metres over the period, although this may have been constrained by the

property on offer within the area.

Table 14 – Take-Up by Unit Size

Size Band (Square Metres) Count Average Annual Take Up

<185 6 51

185-465 1 68

465-1850 1 116

>1850 0 0

Source: EGi, April 2009, manipulated by GVA Grimley, April 2009

LB Bromley Market Demand and Feasibility Report

2009 40

4.36 The average rent achieved (based on asking rent data) in office market transactions within the

market area in the eight transactions recorded since 2003 was £168 per square metre

compared to an average of between £86 and £215 per square metre across LB Bromley as

whole as quoted in the Economic Development and Employment Land Study (with the range

reflecting the low and high rental levels quoted).

4.37 There is very little correlation noted between the size of premises and rental levels asked for

office premises within the market area, suggesting a significant variance in the quality of stock

within Cray Valley.

Table 15 – Rents Quoted

Address Grade Size SqM

Asking Rent (£ per

Sq M)

62a-64a Sayes Court Road BR5 2PQ Second Hand 88 Not known

83 High Street BR5 3NH Second Hand 104 139.24

53 High Street BR5 3NJ Second Hand 101 142.93

13-15 High Street BR5 3NL Second Hand 33 363.86

Kingfisher House New Mill Road BR5 3QG Second Hand 224 160.81

Kingfisher House New Mill Road BR5 3QG Second Hand 63 138.52

Osprey House New Mill Road BR5 3QJ Second Hand 543 Not Known

1 Lagoon Road BR5 3QX Second Hand 118 61.73

Source: EGi, April 2009

4.38 Table 16 illustrates the current availability of office floorspace within the market area (at the

time of writing). There is a total of 98 square metres of office floorspace known to be vacant

and marketed at the time of writing, albeit a floorspace is not known for availability at Cray

Avenue. The 98 square metres is concentrated within two premises in Orpington. All of the

available floorspace has been marketed since November 2008.

Table 16 – Current Availability of Office Floorspace

Address

Date First

Marketed

Asking Rent

(£)

Average size

(sq Ft)

Average size

(sqM)

Cray Avenue, Orpington, BR5 3QF 07/11/2008 162 - 323 Not available Not available

TMS House, Cray Avenue, Orpington, BR5 3QB 20/11/2008 Not available 300 27.9

Unit 8, Metro Centre, Metro, Orpington, BR5 2BE 01/11/2008 136 756 70.2

Total 1056 98.1

Source: EGi, April 2009

LB Bromley Market Demand and Feasibility Report

2009 41

COMMERCIAL MARKET OBSERVATIONS

4.39 Consultation has been undertaken with local commercial market agents, developers, and

business stakeholders to establish qualitative perceptions of the commercial (office) market

potential within the Cray Valley area specifically. The consultation has focused on:

The qualitative nature of the commercial market in each of the identified market areas;

Recent development activity including occupation rates, rents achieved, etc;

Potential occupiers based on recent and perceived market trends (including small

business occupiers);

Enquiry levels across a range of business sizes;

Property requirements (including size, building layout / relationship with the wider

environment, etc., car parking, infrastructure including broadband, etc.) of potential

occupiers including consideration of larger and smaller business investment

opportunities; and

Perceived market capacity in the short, medium and long term.

4.40 It is important to note that the commercial market is currently experiencing an extended slow

down in transactional activity across all sectors. The office market has been particularly badly

affected. This is particularly pertinent when considering the need to bring forward new

premises for office activity whilst vacancy exists in the market including in Central London,

Canary Wharf, and other locations closer to Cray Valley or of similar profile including across

Kent and the wider South East, driving rental values down.

4.41 As a result the general tone of observations from agents and developers is relatively negative,

certainly compared to what it might have been two-years ago. This is an important phasing

consideration across all of the three areas considered within this study, with opportunity for

office development likely to be stronger in the medium to long term (i.e. in the next 10 to 20

years).

4.42 Given that an office market needs to be ‘created’ to some degree within the Cray Valley it is

likely some catalytic investment will be required to drive commercial interest and assist in

creating a viable development environment. Examples of similar developments that have

taken place, delivering a ‘step change’ in market appeal of employment areas include the

Kings Norton Business Centre in South Birmingham (site benefited from Simplified Planning

Zone status), and Milton Park in Oxfordshire, amongst others.

LB Bromley Market Demand and Feasibility Report

2009 42

4.43 The need for interventions in the future will need to be closely related to the eventual schemes

however typically these tend to include infrastructure or public realm provision upgrades or

enhancements, public sector contribution to elements of the development costs, assistance

with land assembly and the potential to act as an anchor tenant within the area to provide a

‘guaranteed’ early income stream. Essentially catalysts should seek to reduce the risks and

increase certainty associated with speculative development to encourage developer interest in

the Cray Valley. Occupier activity and interest will be driven by the quality of the premises an

offer supported by an appropriate investment environment (physical environment, access and

public transport, amenity provision, access to labour force etc).

4.44 In this context the Council should be seeking developments of a medium density (i.e. with plot

ratios of around 0.65 to 1 and employment density for office use of around 18 to 22 square

metres per employee at most) to ensure that sufficient quantum of development takes place

but not at a density or scale that impacts upon the out-of-centre nature of the area.

4.45 The agents all stressed again the difficulty in making a reliable assessment of office potential

in Cray Valley at present due to the recession and the fact that the commercial property

transactional market is so inactive, with few recent deals. Where developments are coming

forward, a greater degree of certainty is sought, with design and build and owner-occupier

schemes more prevalent than speculative. This is noted to be a phenomenon applicable to all

locations, not just LB Bromley.

4.46 Agents and developers alike noted that Cray Valley has traditionally been recognised as an

industrial, storage and distribution area, with a recent growth in prominence of retail

warehouses. It was agreed that it is not an aesthetically attractive location for office occupiers

and it might prove difficult to change the warehouse image of the area into a recognised office

location. The successful transformation of Cray Valley as a whole should therefore be a long

term objective.

4.47 This process of transformation would involve comprehensive change supported in policy, to

move perception away from its current industrial and retail focus towards a business/office

corridor. Realistically this is likely to be achieved incrementally over the long term, with an

initial focus most appropriately to be placed on promoting and intensifying business and office

uses to the north in order to create a ‘market appeal’ and awareness by creating a critical

mass and scale of offer.

4.48 There are a number of examples where business areas or estates with similar characteristics

to Cray Valley have successfully ‘re-invented’ their offer and/or perception to diversify their

offer to support the changing business dynamics of the wider economy. These include large

LB Bromley Market Demand and Feasibility Report

2009 43

estates such as Slough Trading Estate, Winnersh Triangle (Reading), Milton Park (Abingdon)

which have all significantly shifted their offer from industrial/warehouse to more office-based

activities. More pertinent to the Cray Valley are two business areas close to Birmingham:

4.49 The Cranmore Business Park is a 16ha business area located to the south-east of

Birmingham in Shirley and benefits from similar access to major town/city centres (Solihull

and Birmingham) and transport infrastructure (M42) as Cray Valley. The site was originally an

industrial location but is gradually increasing the mix of uses to include significant high quality

office provision. In diverse ownership this has been undertaken in a piecemeal fashion, with

plots being transformed one at a time, a key catalyst for change has also been the

development of a high quality conference facility (Cranmore Park). Allied to the physical

changes a concerted re-branding exercise has been undertaken to establish the area in the

consciousness of the business community and encourage office developers/occupiers.

Cranmore now accommodates 43,000sqm of office space in 9ha of land alongside 25,000sqm

of industrial/warehouse space in 7ha.

4.50 The Kings Norton Business Centre (located 5miles south of Birmingham) was originally home

to the Kings Norton Metalworks and was acquired by SEGRO in 1931, it is now a 22ha

business area accommodating 86 companies in 75,000sqm of space across a range of uses.

Like Cranmore Kings Norton has been brought forward in stages, however in this case the

local authority (Birmingham City Council) have assisted the redevelopment through a

proactive planning policy stance. The Kings Norton Business Centre is a designated

Simplified Planning Zone for office, R&D, industrial and warehouse uses which increases

planning certainty, reduces developers costs and creates a positive environment for

improving/developing Kings Norton’s offer further.

4.51 Both Cranmore and Kings Norton support the recommended approach for the Cray Valley

insofar as they concentrated on delivering change on an incremental basis but had over-

arching branding and planning policy to establish the areas as sites came forward –

encouraging both occupier and developer confidence.

4.52 With an established ‘brand’ (in market perception terms) at Crayfields it is possible to build on

this perception and grow the offer of the Cray Valley from this foundation, reinforcing the core

offer and drawing more peripheral sites as they come forward for redevelopment. This is less

likely to threaten the successful retail elements yet maintain, protect and enhance the

‘traditional’ employment role of Cray Valley.

LB Bromley Market Demand and Feasibility Report

2009 44

4.53 No ‘golden number’ has been noted by agents relating to the quantum of development that

should be sought to create critical mass in this location. Indeed, views on the appropriate

scale of development required to achieve changes in perception differed between agents

when questioned on this matter specifically. At one extreme an agent felt the only option may

be to remove all existing uses and effectively start with a ‘blank sheet’, however they

questioned the relevance and desirability of this given the strength of the retail offer to the

south of Cray Valley.

4.54 The more moderate view was that a relatively modest scheme could have the required affect

provided it was appropriately located to reinforce the positive market perception of the

Crayfields Business Park to the north of Cray Valley. The development of courtyard style

offices was felt appropriate by one agent, although others felt any development should reflect

the current mix of office and light industrial which already exists at Crayfields.

4.55 The key message from agents was that efforts should be focussed in one area (the north

around Crayfields) to maximise impact and capitalise on the existing strengths of Cray Valley.

Future development aspirations should seek to maximise the potential of the sites identified

as having office potential in the medium term in terms of the scale of output but also quality of

output (see figure 13 and accompanying text). Developments should seek to deliver quality

‘out of centre’ style office developments in these sites. Plot ratios of circa 0.65 to 1, and

employment densities of a maximum of 18 to 20 square metres per employee for office and

small business development should be sought in this context.

4.56 Once the perception of Cray Valley as an office location has been created to the north it is

then possible that market forces will begin to bring forward further sites along the corridor.

This can be facilitated through the planning process to ensure appropriate planning

frameworks are in place to influence and encourage development and guide future

applications and protect sites to this end in the interim. It may also be possible to use other

direct public sector interventions to assist in creating a viable proposition as market

recognition increases including for example land assembly.

4.57 The traffic on Sevenoaks Way was also noted through consultation to be a significant

constraint, caused by a combination of the bus lanes, the success of the retail warehouses

(i.e. literally road and access point capacity), and the fact that Sevenoaks Way is a major

route to Bromley from the M25. The traffic was felt to discourage potential office tenants. In

addition, whilst the train service from St Mary Cray to London Victoria is a positive driver,

vandalism at the station was another source of discouragement.

LB Bromley Market Demand and Feasibility Report

2009 45

4.58 There was however agreement that more immediate potential exists in locations nearer to

junctions onto the A20 which would not require the same image change/incremental

approach. Such a location for development would avoid the traffic and image issues around

Sevenoaks Way to the south and also provide good access to the M25, attracting regional

and national occupiers, and possibly small occupiers such as sales companies requiring good

road links.

4.59 One of the developers consulted suggested that the size of offices could range from small,

medium to large, providing for the small sales agent and the national company headquarters.

It was recognised however that many small to medium businesses do not require such road

links and would prefer to travel to a town centre location, with the associated amenities, rather

than an out-of-town office park location.

4.60 A commonly cited example of what might be successful was the Crossways Business Park,

near Dartford. This is a large, mixed use business park (office and industrial) on the M25,

covering approximately 128 hectares (315 acres). It provides a range of office sizes but

notably accommodating large regional and national businesses.

4.61 Agents did however point out the risk that regional and national occupiers would have to be

enticed from other locations closer to the M25, and that they might prefer the likes of

Crossways Business Park which is more established occupier location. The developer

Capital Enterprise Centres commented that rather than trying to compete with other out-of-

town business parks for major occupiers, there is the potential (at locations near to the A20) to

cater for small start up businesses, with offices and workshops, providing a different offer in

this context.

4.62 This view reinforces one of the central themes from wider consultation undertaken as part of

this study and also a core message from the wider Economic and Employment Land Study

which recognised the importance of small and start up enterprises within the Bromley

business base. The Employment Land Study recommendations included identification of the

need to introduce small business space into the Borough’s property market, covering general

business and industrial space as well as the potential for ‘hybrid’ units.

4.63 To a degree the development of small business focussed space will create its own demand as

it draws entrepreneurs from ‘informal’ business premises (such as those currently operating

from at home) who have not previously sought business premises. Often these entrepreneurs

are attracted by more favourable and flexible lease terms than mainstream market premises,

the ability to benefit from other services such as reception facilities, meeting rooms, and the

LB Bromley Market Demand and Feasibility Report

2009 46

opportunity to present a more ‘professional’ appearance for their business. When required /

on an ‘as-required’ basis.

RECOMMENDATIONS

4.64 Whilst the Cray Valley is recognised to be an existing (and allocated) Business Area market

analysis site observations suggest its ‘core’ employment function has been eroded

incrementally over time. There are a number of examples along the linear employment

corridor where retail and retail warehousing development has taken place at the cost of

traditional employment activities. In the majority of cases these developments are noted to

have seen good take-up, and appear to be relatively active.

4.65 The result of this trend has been the emergence of an area lacking in definition and identity as

an employment location (using a ‘traditional’ definition of employment) – making it a difficult

office or industrial market prospect. This is particularly relevant when considering the

opportunity (and need) identified within the Employment Land and Economic Development

Study to establish an office market of significance in the area, with current activity and market

presence or indeed recognition fairly limited. This is certainly true of the lack of concentration

of ‘traditional’ employment activity around the Cray Avenue / railway line crossroads which

has seen the majority of retail warehouse development in the area in recent years.

4.66 The analysis of revealed demand for offices within the market area is reflective of the stock

profile in the area. Past development of offices has been limited to a small cluster at New Mill

Road (Crayfields Business Park), to the north of the Cray Valley, and High Street to the south

of the railway line. All transactions within these areas have been for second hand premises

with no new office development coming to the market in recent years. It is noted that

Crayfields Business Park is of a relatively high standard in this context, developed within the

last ten years with relatively good levels of activity observed. Rental levels have been

relatively strong within transactions in the area, in the upper range of those achieved on

average across the Borough.

4.67 The identified key constraints or ‘blockages’ to the current office market potential of the area

include:

The appearance and associated perceptions of the ‘core’ area of the Cray Valley,

traditionally an industrial, storage and distribution area, with the recent growth of retail

warehousing presence. The area suffers from a weak employment identity (with its

profile now more strongly aligned with retail activity in the area), with a number of

stakeholders and agents suggesting that it would be difficult to ‘re-brand’ the area as an

LB Bromley Market Demand and Feasibility Report

2009 47

office location as a result. This would still be true in stronger market / economic

conditions. In this instance, the potential to ‘re-brand’ relates to market recognition and

marketing collateral, rather than specific public realm or landscaping investment. The key

point is, that in its current context, it is difficult for the market to view the Cray Valley as an

office location on the basis of its appearance, predominant uses, quality and nature of

premises, and transactions taking place.

Congestion and the visual and pedestrian environment impact associated primarily with

traffic along Cray Avenue / Sevenoaks Way are all noted to the extent where they may

discourage potential office tenants. A number of stakeholders and agents consulted

noted specifically an issue with the bus corridor along the road, including its operational

time with general observations noting that it is not required throughout the day, and its

impact on the uses along the road, detracting from the quality of the environment along

the business corridor. LB Bromley Council appreciate the importance of achieving

improvements to congestion and are working with TfL to restrict bus lane operating times

to peak travel hours. Issues such as this are important business retention considerations

which should be considered and mitigated where possible by the Council and other

partners to ensure re-investment by businesses in the future.

The quality of the built environment around the ‘core’ of the Cray Valley employment area

is a potential constraint to promoting an office market in the area. For example, the

maintenance of the train station as a key strategic link has been cited as an issue within

the consultation undertaken.

The lack of quality office market stock in the market area is a key ‘blockage’ to developing

and promoting the Cray Valley as a realistic office market prospect.

4.68 However, despite these identified constraints there is a recognised potential for office market

development in the wider Cray Valley, noted specifically in commercial market consultations

and site visits undertaken. It is felt that any such offer would have to be located in close

proximity to strategic road links (including the A20 and M25 specifically) whilst still benefiting

from the rail link to London (amongst other destinations). Proximity to the M25 gives this area

distinction over other business areas within the Borough, supporting an associated

commercial market opportunity. Future development should also be prioritised in locations

that are seen to have a positive relationship with the aspiration to change perceptions of the

corridor (e.g. on key sites / sites with prominent road frontages)

4.69 It is also important that any such offer which comes forwards in the area in the future must be

branded as an office / business park in its own right, giving it coherence and market presence

and opportunity to influence market perceptions of the wider Cray Valley area. As a longer

LB Bromley Market Demand and Feasibility Report

2009 48

term strategy it is recognised that such an approach could contribute to the ‘re-branding’ (i.e.

change in market perceptions) of the Cray Valley Avenue corridor in general.

4.70 The study into the Cray Valley has included the identification of a number of sites including

those that are key sites on the basis of their prominence / potential to promote the ‘re-brand’

of the business area, sites that are suggested to be tested for potential allocation within the

LDF for B1(a, b) uses, and sites that show potential for intensification (including the promotion

of B1 (a, b) uses over time). These sites are illustrated on Figure 13. If these sites fail to come

forwards for employment use (primarily office employment) the long term sustainability of the

Cray Valley employment (NB: assuming an aspiration for the corridor to be predominantly

traditional employment) corridor is questionable.

4.71 On the basis of consultation and research undertaken as part of this study, it is concluded that

without prominent office development taking place in this area the long term sustainability of

this corridor for ‘traditional’ employment purposes will be compromised.

LB Bromley Market Demand and Feasibility Report

2009 49

Figure 14 – Cray Valley Identified Sites

LB Bromley Market Demand and Feasibility Report

2009 50

4.72 Table 13 illustrates the developable area at various identified sites within Cray Valley

including gateway sites, potential allocation sites, and an intensification site, including

potential floorspace and job creation outputs.

4.73 The table applies a plot ratio of 0.65 (assuming that for every 1 hectare of land, 65% will be

developed as employment floorspace). This plot ratio makes allowance for this site being an

out-of-centre site, but also reflects existing plot ratios in the office development to the north of

the Cray Valley which is recognised to not be of particularly high density (compared to, for

example, urban centre developments).

4.74 Emerging research to be published by Roger Tym & Partners3 suggests employment densities

within London suburbs for office development standing at circa 21 square metres per worker.

For consistency with the Economic Development and Employment Land Study (which applied

an employment density of 18 square metres per office worker) two models have been run to

calculate potential employment output from these identified sites reflecting the two

employment densities. The conclusions drawn regarding potential employment creation in

these sites are therefore caveated with these assumptions.

4.75 A further caveat to this analysis relates to the market reality of these calculations. Whilst the

analysis suggests in the region of 7,590 to 8,850 job creation potential on the sites identified it

is unlikely the market would support such levels of employment. This is particularly pertinent

when factoring in e.g. access / road capacity constraints etc. As a result these figures should

be treated as absolute maximums.

3 Consultation Workshop material for Planning for Employment Land Study on behalf of Yorkshire Forward (June 2009)

LB Bromley Market Demand and Feasibility Report

2009 51

Table 17 – Site Areas (lower density office employment)

Site Description

Total Area

(ha)

Net

Developable

Area (ha)

Floorspace1

(sqm) Job Creation2

Northern Gateway Site 1.26 0.82 8,199 390

Central Gateway Site 2.94 1.91 19,110 910

Southern Gateway Site 9.47 6.15 61,528 2,930

Eastern Potential Allocation Site 5.06 3.29 32,863 1,565

Western Potential Allocation Site 2.27 1.47 14,757 702

Intensification Site 3.54 2.3 23,009 1,096

TOTAL 24.54 159,448 8,858

Note 1: To calculate Floorspace a plot ratio of 0.65 has been employed

Note 2: To calculate Job Creation a standard employment density of 21sqm per employee has been used in

line with the Roger Tym & Partners Study (June 2009)

Source: GVA Grimley, 2009

Table 18 - Site Areas (higher density office employment)

Site Description

Total Area

(ha)

Net

Developable

Area (ha)

Floorspace1

(sqm) Job Creation2

Northern Gateway Site 1.26 0.82 8,199 456

Central Gateway Site 2.94 1.91 19,110 1,062

Southern Gateway Site 9.47 6.15 61,528 3,418

Eastern Potential Allocation Site 5.06 3.29 32,863 1,826

Western Potential Allocation Site 2.27 1.47 14,737 819

Intensification Site 3.54 2.3 23,009 1,278

TOTAL 24.54 159,448 7,593

Note 1: To calculate Floorspace a plot ratio of 0.65 has been employed

Note 2: To calculate Job Creation a standard employment density of 18sqm per employee has been used in

line with the Economic Development and Employment Study

Source: GVA Grimley, 2009

4.76 The key / gateway sites are identified on the basis of their prominence and the perception of

their current use (including the extent to which current employment activity is considered to be

appropriate in terms of intensity and nature of use), and also their potential to influence the

future direction of development activity (and employment) within the Cray Valley. Combined,

these sites have a total land area of 8.88 hectares, with the potential to accommodate 88,838

square metres of office floorspace (assuming a high plot ratio of 1) and between 4,230 and

4,935 jobs. It is noted that this is an aspiration that would include complete redevelopment of

the sites rather than infill development. It is further noted that part of the Central Gateway site

LB Bromley Market Demand and Feasibility Report

2009 52

is undevelopable (railway embankment) with the figure of circa 2,900 and 3,400 jobs potential

at this site relating to the whole site area.

4.77 The identified gateway sites include a site to the north, currently accommodating Homebase

and associated car parking / services, which although not an allocated employment site,

occupies a key location relative to the Crayfields Business Park and acts as a gateway to the

wider employment corridor from the A20. Long term aspirations should include for

employment uses on this site focusing on B1 (a, b) activities should be promoted in these key

opportunity sites in the future in preference to general B1 (c) or B2 employment or retail

warehousing. It is recognised that this is currently a retail site, however, the opportunity to

cluster B1 (a) office use to the northern end of the corridor should be sought, with this site

recognised to be a key gateway. It is suggested that this aspiration should be promoted if the

site becomes available in the future.

Figure 15 – Gateway Site on Cray Avenue

4.78 Given the activity noted at the current time (with all of the identified key sites in use, albeit not

intensively in most cases) the development of these sites should be considered a long term

objective. The approach should be to ensure appropriate planning policy and aspirations are

in place relating to each and the corridor in general to protect this position in the medium to

long term.

4.79 Two sites have been identified as potential sites for allocation, both adjacent to the existing

Crayfields Business Park. Both of the sites are designated Green Belt, with the site to the

west a former factory sports ground. In delivery terms the public space is considered to be a

medium to long term opportunity whilst the site to the east has shorter term potential. The site

to the east has an area of 5.06 hectares, with the potential to accommodate 32,863 square

metres of B1 (a, b) floorspace and between 1,565 and 1,826 jobs.

LB Bromley Market Demand and Feasibility Report

2009 53

Figure 16 – Crayfields Business Park (1)

Figure 17 – Crayfields Business Park (2)

Figure 18 – Land Adjacent to Crayfields Business Park

4.80 Policy guidance relating to Green Belt sites states that development will not be permitted

unless ‘special circumstances’ can be provided to justify development taking place. If the

opportunity sites are to be taken forward within the LDF and suggested for allocation for

employment purposes the ‘special circumstances’ argument should focus on the regeneration

need identified within the Cray Valley including that relating to employment and income levels,

the absence of sites available for B1 (a, b) office development across the Borough (especially

sites suitable for out-of-centre development), and the important opportunity to ensure the long

term sustainability of this employment corridor through appropriate development clustering

around a recognised office location (Crayfields Business Park). Take-up of employment land

LB Bromley Market Demand and Feasibility Report

2009 54

should be monitored and where possible used to evidence special circumstance (need) for

this land for employment purposes4.

4.81 It is further noted that these sites lie within the ‘functional floodplain’ of the River Cray. Whilst

this does not preclude office development on the site it does add a further constraint (cost) to

development in this context.

4.82 Finally, one site has been identified within the study to have specific potential for

intensification in the future on the basis of long term management of decline on the site. This

site is located in proximity to the existing Crayfields Business Park, and adjacent to the

potential allocation sites identified and highlighted above.

4.83 The development potential of the intensification site is directly related to the potential

allocation sites to the east and west being brought forward for employment development and

subsequent uplift in demand or capacity requirements as a result. It is therefore likely to be a

long term (potentially beyond the emerging LDF plan period) opportunity. However, consistent

with emerging advice in PPS4 the site should be protected in policy during this plan period for

employment uses to ensure this opportunity is retained for the future and a good supply of

sites is maintained over all time periods.

4.84 Should Green Belt release not be permitted it may be that site intensification can be

undertaken without the other sites coming forward, although this may require greater levels of

intervention to achieve in isolation to make investment viable.

Figure 19 – Business Activity Nearby Crayfields Business Park (1)

Figure 20 – Business Activity Nearby Crayfields Business Park (2)

4 NB: It is recognised that the take-up rates outlined within this Feasibility Study do not represent sufficient evidence to justify

these special circumstances in this (take-up) context.

LB Bromley Market Demand and Feasibility Report

2009 55

4.85 On a similar basis to the consideration of the other identified sites, the intensification site has

an area of 3.54 hectares, with the potential to deliver 23,009 square metres of office

floorspace and between 1,096 and1,278 jobs.

4.86 A number of key recommendations are drawn from this for the Council to consider the future

relating specifically to developing an office market product and proposition for the Cray Valley

area. These have been developed on the basis of our analysis, and community and key

business stakeholder consultation undertaken, and are summarised below:

Office occupier opportunity within the Cray Valley is identified, assuming the right product

can be brought forwards, likely to centre around local and regional scale businesses

looking for a ‘traditional’ out-of-office business park along the M25. Key sectors are likely

to mirror those identified in the Economic Development and Employment Study for the

wider LB Bromley economy including financial and professional business sectors,

including insurance. It is important that the quality of offer coming forward within the Cray

Valley is maximised but rents are competitive (given the distance of the area from the

M25 specifically) as an attractor to the site giving it distinction compared to other

business parks in the M25 corridor.

Demand for smaller businesses has also been noted within the wider Cray Valley and

Orpington area with a potential to bring forwards a mixture of larger and smaller office

provision (with the former focused within Grade A flexible floorplates) and workshop

provision. Given the setting of the Cray Valley as an out-of-town location it will be distinct

from the offer within both Bromley and Orpington town centres respectively which in turn

have distinct market appeal. Whilst such a product will, to an extent, be a competitive

pressure on both town centres it is recognised that there are distinctions within occupiers

who would have a preference for either as in-town or out-of-town location. Indeed, a

successful office market will include an urban centre and out-of-centre offer as a

complementary product reflecting this trend. Developments should be sought that are of a

medium density (e.g. plot ratios of circa 0.65 to 1 as applied within this analysis),

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ensuring employment output potential is maximised but also maintaining the out-of-centre

distinctiveness of this location compared to others within the Borough.

The Council should prepare a Development Brief including viability (financial feasibility) of

the cluster of opportunity sites to the north of Cray Valley as identified as part of this

study (with consideration of phasing of the intensification and Green Belt potential

allocation sites) to test in more detail the quantums and potential building locations /

layout of a business park (including primarily B1 uses but also potential supporting

amenity development including convenience retailing, and crèche facilities for example).

The Development Brief should focus on the identification of: quantums of B1 floorspace /

capacity for B1 floorspace taking into account building sizes and layouts, building heights,

access and movement, landscaping and car parking, and viability. Engagement should

be sought with landowners as part of this process, at the earliest stage possible.

In undertaking the Development Brief due diligence including that listed below should be

taken into account:

- Ecology / arboriculture / flora and fauna issues;

- Highways – access and traffic impact of potential scale of development;

- Measured site surveys including site boundary and grid levels;

- Limited geotechnical investigations (including circa 2 to 4 pits);

- Archaeological report (desk top); and

- Legals (titles issues that there may be).

Despite reasonable public transport access via bus services and train services from St

Mary Cray the key driver for potential occupiers within Cray Valley will be the strategic

road access facilitated by the A20. As such any new development will need to cater

appropriately for a large degree of car based commuting to work. This is a similar

situation to that found at Crossways and Kings Hill Business Parks and the existing

Crayfield Business Park, with each providing parking to a ratio of 1 space per 19-23sqm –

a level which is likely to be required by occupiers at any new development.

Given the challenges faced in repositioning Cray Valley as an office location it is unlikely

that any ‘quick wins’ could be achieved and a longer term commitment and strategy is

required. The need to reallocate sites within planning policy, or failing that undertake

intensification through demolition and redevelopment, coupled with impacts of the current

recession make it difficult to foresee significant changes being achieved in the short term

(i.e. the next 5-7 years). Indeed as outlined above it is realistic to expect the Potential

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Allocation sites to be delivered in the medium to long term (possibly 10-15 years) with the

Intensification Site following this (15 + years – potentially beyond this plan period).

In this context the Development Brief and viability assessment should be undertaken in

the immediate term (i.e. next 12 months) to fully understand the market potential of the

site and appropriate nature/scale of any future development. This will enable a fully

evidence-based policy position to ensure appropriate protection and promotion is given to

the cluster of sites to the north of Cray Valley and ensure the case can be made regarding

Green Belt release at the earliest opportunity.

Monitoring of the Cray Valley market area including employment levels, floorspace

occupied, business types (by sector) should be undertaken annually. The impact of future

development can be measured in this way, including the extent to which development is

resulting in an increase in quality of employment within the corridor (including density of

development and business activity).

Summary of Actions

4.87 The key actions for Cray Valley emerging from this study are summarised below.

Table 19 – Cray Valley – Summary of Actions

Summary of Action Time Frame

The Council should prepare a Development Brief including financial feasibility of the identified

cluster of opportunity sites to the north of the Cray Valley. The Brief should consider, amongst

other things, phasing, potential release of the Green Belt, scale, massing and potential layouts

(including access and movement, landscaping and car parking), and the need and most

appropriate location of amenity provision to support future business investment in the area.

Engagement with landowners should be sought as part of the Brief.

Immediate

The Council should monitor the take-up of land and premises within the Cray Valley including

employment levels, floorspace occupied, and business types by sector. Ongoing

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5. ORPINGTON TOWN CENTRE

5.1 This section considers the current nature of activity within Orpington Town Centre (‘the town

centre’), including the area characteristics, specific commercial market (office) potential

identified within the area, business and occupier potential for future investment, and

recommendations to promote delivery of future investment within the town centre focusing on

commercial (office) employment uses.

SITE ASSESSMENT

Current On-Site Uses / Structures

5.2 Orpington Town Centre is a designated Major Town Centre in the London Plan and is the

second largest town centre within the LB Bromley. The town centre is focused on the High

Street which extends approximately 900 metres and provides a range of retail and service

uses. There are a variety of uses in the town centre vicinity, including residential, office, retail,

food and drink and community uses.

5.3 The properties in the High Street and dwellings in surrounding streets are predominantly from

the early 20th Century, but the properties on the northern end of the High Street are more

historic. The High Street parade is generally three storeys in height, it has a tired appearance

and the upper floors look to be largely vacant. Accessible on the eastern side of the High

Street is the large Walnuts Shopping Centre and multi storey car park, beyond which are

Orpington College buildings and leisure centre, including a tower block. These buildings are

of post war construction and are generally viewed to be run down and dated.

5.4 To the west of the High Street, to its southern end, is a recently opened Tesco superstore with

residential units. This, along with improvements being made to Orpington College and a new

Village Centre represent investment in the building stock of the town centre.

5.5 On Knoll Rise, just off the High Street on its western side, towards the train station, are 4 and

5 storey office buildings from the 1970’s and 1980’s which appear dated but of relatively good

condition (albeit detailed surveys of condition have not been undertaken as part of the study).

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Figure 21 – Knoll Rise (1)

Figure 22 – Knoll Rise (2)

5.6 On the basis of site visits and consultation undertaken there is an identified concern that

without further, sustained investment Oprington will continue to decline. There is a clear need

for a targeted approach to reverse this trend within an important town centre both in terms of

regeneration (including local employment and service provision) and the character of the

Borough.

Figure 23 – Orpington High Street (1)

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Figure 24 – Orpington High Street (2)

Figure 25 – Orpington High Street (3)

Figure 26 – Orpington High Street (4)

Strategic and Local Access and Connectivity

5.7 Local connectivity to Orpington is relatively good, including rail links via Orpington station

approximately 600m to the west of the High Street. The station is on the central London to

south east coast line and is operated by South Eastern trains. There is regular and direct

access to stations in central London, including Cannon Street, Victoria, Charing Cross,

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Waterloo and London Bridge. Much of the South East London area is also served, as are

stations in Kent, including Sevenoaks, Tonbridge, Dover and Ashford International.

5.8 Bus connectivity is considered to be good, with services linking the town centre to much of

Orpington and the surrounding area, including Farnborough, Goddington, Derry Downs and St

Mary Cray. The main bus routes serving the town centre are Nos 51, 61, 208, 353, 358, B14,

R2 and R9.

Table 13 – Daily Buses from Orpington

Route Number Towards Peak Time Frequency

51 Orpington / Beresford Street Roughly between 7 and 10 minutes

61 Orpington / Towards Bromley North Station Roughly between 15 and 20 minutes

208 Orpington / Perry Hall Road Roughly between 10 and 14 minutes

353 Orpington / Addlington Village Interchange Roughly every 15 minutes

358 Orpington / Towards Crystal Palace Parade Roughly between 10 and 14 minutes

B14 Orpington / To Bexleyheath Clock Tower Roughly every 30 minutes

R2 Orpington / To Station square / Petts Wood Roughly every 30 minutes

R9 Orpington Station Roughly every 12 minutes

Source: Tfl, 2009

Table 14 – Night Buses from Orpington

Route Number Towards Peak Time Frequency

N47 Trafalgar Square Roughly every 20 minutes

Source: Tfl, 2009

5.9 Road connectivity to the area is good, both locally and strategically. The A224 links between

the A20 Sidcup Bypass (in the north) and the A21 Sevenoaks Road (in the south), both of

which have direct connectivity to the M25 motorway to the east. The A224 is also a feeder

road for settlements to the east and west.

Surrounding Land Uses

5.10 The town centre area is urban in character but with visible public areas. There are a variety of

uses evidenced, including residential, office, retail, food and drink and community uses.

Beyond the High Street is predominately suburban, medium density, two storey housing.

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Quality of the Wider Environment

5.11 The town centre is of mixed quality, with some historic features to the northern and western

ends, but with observed decline on the High Street. New development and investment is,

however, taking place within the town centre including at Orpington College, a new Village

Centre at the western end of the high street, and a new Tesco superstore, also at the western

end which has recently opened. There is also an Orpington Town Centre Masterplan in place

to guide investment in the public realm throughout the area.

5.12 Given its proximity to a number of relatively large residential areas, and also in the wider

context Green Belt surroundings, the quality of the environment in which the town centre is

located is mixed.

5.13 Specifically, some of the housing areas within close proximity are of varied quality. This

accommodation is largely existing or past Local Authority housing, with varied levels of

investment due to assumed pepper-potting of Right-to-Buy activity in the past. Index of

Multiple Deprivation (2007) data suggests relatively high levels of deprivation in this area,

relative to the Borough, including that within the living environment domain.

5.14 The rural Green Belt areas to the east are observed to be of higher quality, including smaller

residential settlements of large family housing in low density settings.

5.15 Orpington Town Centre is identified within the UDP as a ‘Major Town Centre’, within which

Primary and Secondary frontage distinctions apply as designated on the Proposals Map.

Orpington is noted to be predominantly a convenience centre serving the local community,

including a leisure economy.

5.16 In Primary Retail Frontages (the central core of High Street within Orpington), as defined on

the Proposals Map, the Council will only permit changes of use from retail (Class A1) to other

uses where the proposal would:

(i) Not harm the retail character of the shopping frontage;

(ii) Generate significant pedestrian visits during shopping hours;

(iii) Complement the shopping function of the Town Centre;

(iv) Not create a concentration of similar uses; and

(v) Have no adverse impact on residential amenity.

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5.17 In Secondary Retail Frontages (applies to the periphery of High Street in Orpington at the

northern and southern ends of the Primary Retail Frontages), as defined on the Proposals

Map, the Council will permit changes of use from retail (A1) to other uses provided that:

(i) the use provides a service that complements the shopping function of the town centre;

and

(ii) there is no adverse impact on the residential amenity.

5.18 Proposals for workshop or office use, on the edge of town centres will also have to comply

with Policy S10 (non-retail use).

5.19 Policy S10 Non Retail Uses in Shopping Areas states that in retail frontages the Council will

not normally permit uses that do not offer a service to visitors unless:

(i) there has been a long term vacancy and a lack of demand for a retail or service use

that can be proven; and

(ii) the proposed use is in premises where it would not undermine the retail viability of the

centre.

5.20 Areas of Orpington Town Centre are also designated as a Conservation Area. Under Policy

BE11 the character or appearance of Conservation Areas are preserved through the

expectation of new development, engineering works, alteration or extension to a building, or

for change of use to:

(i) Respect or complement the layout, scale, form and materials of existing buildings and

spaces;

(ii) Respect and incorporate in the design existing landscape or other features that

contribute to the character, appearance or historic value to the area; and

(iii) Ensure that the level of activity, traffic, parking services or noise generated by the

proposal will not detract from the character or appearance of the area.

5.21 The area also falls within a designated Area of Archaeological Interest, as identified on the

UDP Proposals Map.

5.22 It is noted that there are plans for / ongoing public sector-led investment within Orpington,

including within the central town square. This includes the re-use / redevelopment of the

Police Station to include retail provision but importantly improving frontage onto the square,

and the introduction of Orpington Library to occupy the Council Office space including an

active frontage onto the area. Aspirations also include the redevelopment of the Job Centre

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building including a mix of uses. This area will see public sector investment but also remains a

significant opportunity for private sector activity in the future.

REVEALED MARKET DEMAND

5.23 Quantitative analysis has been carried out with regard to revealed demand for office

floorspace. Revealed demand is measured primarily by take-up activity. This looks at the rate

at which ‘completed’ property is occupied, along with the rate of occupation of available or

‘second hand’ property.

5.24 It is important to note that this analysis intrinsically reflects, and is constrained, by current

economic conditions and climate, and is therefore not fully representative of longer term

trends, and requirements and opportunity. However, for the purposes of this study and the

nature of the market in this location, it is felt that this approach is sufficient to present headline

levels of revealed demand.

5.25 Given the focus of this commission on the potential for office development within Orpington

Town Centre the analysis of revealed market is concentrated on the office market. To focus

analysis on the Town Centre area specifically, a ‘market area’ has been identified, through

consideration of postcode sectors covering the area, and consultation with commercial market

agents. Data has been obtained for this Orpington town centre market area.

5.26 The Orpington Town Centre market area is defined by the postcode sector BR6 O, illustrated

on Figure 26.

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Figure 27 – Orpington Town Centre Market Area: Geography of Definition

LB Bromley Market Demand and Feasibility Report

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5.27 Table 15 below, illustrates the take up of B1 office floorspace within the market area since

2003. A total of 47,422 square feet / 4,405 square metres of B1 office floorspace has been

taken up within the area over the past six years, with the majority of transactional activity

focused on the High Street. Take-up along the High Street accounted for over 60% of this

total take up (29,729 square feet / 2,761 square metres).

Table 20 – Office Take Up in Orpington Town Centre Market Area

Street No. Street Postcode

Days on

market Grade Size SqFt Size Sqm

Central Court Knoll Rise BR6 0JA 61 Second Hand 1,881 175

Central Court Knoll Rise BR6 0JA Not known Not known 3,316 308

Central Court Knoll Rise BR6 0JA Not known Second Hand 3,316 308

73a High Street BR6 0JF 285

New or

Refurbished 519 48

178 High Street BR6 0JW 223 Second Hand 2,850 265

109a High Street BR6 0LG 830 Second Hand 390 36

Templegate House High Street BR6 0LG 223 Second Hand 4,640 431

Templegate House High Street BR6 0LG Not known Not known 6,000 557

282a High Street BR6 0ND 217 Second Hand 500 46

312b High Street BR6 0NG 252 Second Hand 428 40

279a-285a High Street BR6 0NN 157 Second Hand 1,845 171

Downe House High Street BR6 0NN 448 Second Hand 320 30

Downe House High Street BR6 0NN 191 Second Hand 911 85

350 High Street BR6 0NQ 233 Second Hand 800 74

Two Knoll Rise Knoll Rise BR6 0NX Not known Not known 2,300 214

229-231 High Street BR6 0NZ 617 Second Hand 1,916 178

203-205 High Street BR6 0PF 415 Second Hand 765 71

207-215 High Street BR6 0PF 549 Second Hand 2,455 228

203-205 High Street BR6 0PF 9 Second Hand 1,670 155

203-205 High Street BR6 0PF 1117

New or

Refurbished 765 71

203-205 High Street BR6 0PF 244

New or

Refurbished 685 64

207-215 High Street BR6 0PF Not known Second Hand 2,270 211

Valient House Knoll Rise BR6 0PG Not known Not known 4,040 375

South East House

Station

Approach BR6 0SX Not known Not known 2,292 213

44a The Walnuts BR6 0TW 136 Second Hand 548 51

Source: EGi, April 2009

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5.28 The majority of take-up over the period within the market area was concentrated within

second hand floorspace, comprising 58% of total take-up during the period (27,505 square

feet / 2,555 square metres).

5.29 Data relating to the length of time the floorspace was marketed before being taken up is

presented where it is available. The average number of days on the market for office property

taken up within the market area (where data is available) is 345 days. The longest period any

one property was marketed for was 1,117 days (203-205 High Street). The average marketing

period of almost a year for property is considered to be relatively long within an urban centre

context.

5.30 The majority of office take-up within the market area has been dominated by smaller premises

when measured in terms of absolute numbers of transactions recorded. Indeed of the twenty-

two transactions recorded, fifteen were sized below 185 square metres, with an annual

average take up of 130 square metres over the period.

5.31 There was no take-up of office premises above 1,850 square metres over the period, although

it is likely that this is constrained by the nature of the property offer in the area.

Table 21 – Take-Up By Unit Size

Size Band (Square Metres) Count Average Annual Take Up

<185 15 130

185-465 7 313

465-1850 1 337

>1850 0 0

Source: EGi, April 2009, manipulated by GVA Grimley, April 2009

5.32 The average rent achieved (based on asking rent data) in office market transactions within the

market area in the twenty-two transactions recorded since 2003 was £132.50 per square

metre compared to an average of between £86 and £215 across Bromley as a whole as

quoted in the Economic Development and Employment Study (with the range reflecting the

low and high rental levels quoted).

5.33 This ‘middle ground’ rent achieved is likely to be linked primarily to the quality of the stock. It is

however important to note that these rental levels are likely to provide an affordable option for

local (and often small) businesses. Future investment in Orpington within commercial

floorspace specifically should ensure that these affordable rental values are maintained into

the future. This will be critical in ensuring small business growth in the area in the future.

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5.34 There is very little correlation noted between the size of premises and rental levels asked for

office premises within the market area, suggesting a significant variance in the quality of stock

within the town centre market area.

Table 22 – Rent Quoted

Street No. Street Postcode Grade Size SqM

Asking Rent (£

per Sq Ft)

Central Court Knoll Rise BR6 0JA Second Hand 175 Not Known

Central Court Knoll Rise BR6 0JA Not known 308 139.93

Central Court Knoll Rise BR6 0JA Second Hand 308 139.93

73a High Street BR6 0JF New or Refurbished 48 150.37

178 High Street BR6 0JW Second Hand 265 Not Known

109a High Street BR6 0LG Second Hand 36 Not Known

Templegate House High Street BR6 0LG Second Hand 431 150.7

Templegate House High Street BR6 0LG Not known 557 Not Known

282a High Street BR6 0ND Second Hand 46 Not Known

312b High Street BR6 0NG Second Hand 40 Not Known

279a-285a High Street BR6 0NN Second Hand 171 Not Known

Downe House High Street BR6 0NN Second Hand 30 Not Known

Downe House High Street BR6 0NN Second Hand 85 Not Known

350 High Street BR6 0NQ Second Hand 74 Not Known

Two Knoll Rise Knoll Rise BR6 0NX Not known 214 Not Known

229-231 High Street BR6 0NZ Second Hand 178 Not Known

203-205 High Street BR6 0PF Second Hand 71 Not Known

207-215 High Street BR6 0PF Second Hand 228 Not Known

203-205 High Street BR6 0PF Second Hand 155 106.35

203-205 High Street BR6 0PF New or Refurbished 71 Not Known

203-205 High Street BR6 0PF New or Refurbished 64 Not Known

207-215 High Street BR6 0PF Second Hand 211 107.64

44a The Walnuts BR6 0TW Second Hand 51 Not Known

Source: EGi, April 2009

5.35 Table 18 illustrates the current availability of office floorspace within the Orpington Town

Centre market area (at the time of writing). There are only three premises currently being

marketed within the area, two on the High Street and one on Perry Hall Road, totalling 2,766

square metres. All of the premises marketed are in the medium sized range.

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Table 23 – Current Availability of Office Floorspace

Address

Date First

Marketed Asking Rent (£)

Average size

(sqm)

First Floor Templegate House, High Street, BR6 0LG 02/08/2007 75000 (pa) 557

Kelsey House, 2 Perry Hall Road, BR6 0JJ 19/09/2008 176000 (pa) 1161

Bancroft House, 251 High Street, BR6 0NT 22/01/2009 129 (psm) 1047

Total 2,766

Source: EGi, April 2009

COMMERCIAL MARKET OBSERVATIONS

5.36 Consultation has been undertaken with local commercial market agents, developers, and

business stakeholders to establish qualitative perceptions of the commercial (office) market

potential within Orpington town centre specifically. The consultation has focused on:

The qualitative nature of the commercial market in each of the identified market areas;

Recent development activity including occupation rates, rents achieved, etc;

Potential occupiers based on recent and perceived market trends (including small

business occupiers);

Enquiry levels across a range of business sizes;

Property requirements (including size, building layout / relationship with wider

environment car parking, infrastructure including broadband etc) of potential occupiers

including consideration of larger and smaller business investment opportunities; and

Market capacity in the short, medium and long term.

5.37 It is important to note that the current commercial market is experiencing a general slow down

in transactional activity across all sectors but importantly in the context of this study the office

market has been hit particularly hard.

5.38 As a result the general tone of observations from agents and developers is relatively negative,

certainly compared to what it might have been two years ago. This is an important phasing

consideration across all of the three areas considered herein, with opportunity for office

development likely to be stronger in the medium to long term. Considerations such as

potential catalysts that may drive the market are significant to developing an office market in

these locations.

5.39 It is also important to note that there is a significant proportion of vacant office floorspace

within Bromley Borough (albeit there are questions over both the quality and the location of

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2009 70

this floorspace) and Central London (existing and coming on-stream) that must also be

considered, including falling rental values in both areas.

5.40 The agents all stressed the difficulty in making a reliable assessment at present due to the

recession and the fact that the commercial property transactional market is so inactive, with

few recent deals. Where developments are coming forward, a greater degree of certainty is

sought, with design and build and owner-occupier schemes more prevalent than speculative.

5.41 Opinions differed regarding Orpington, but there was recognition of demand for office space,

with the notable office provision on Knoll Rise behind the High Street towards the train station.

However, there were identified constraints and questions as to whether or not Orpington could

support an expansion of the existing office provision. The constraints identified included the

following:

The town has suffered as a location due to the displacement of the retail offer to retail

warehouses in Cray Valley, plus the competition from retail provision in Bromley Town

Centre and Bluewater. The loss of Marks and Spencer is also seen as presenting an

image problem. One agent commented that the town is therefore seen as a local centre

rather than a Major Town Centre.

Whilst Orpington can offer low rents as an incentive to occupiers (currently around £12 -

£13 psf), they are far too low for any development to be viable, and refurbishment of the

current stock may therefore be a preferred option. It was however noted that low rents

undermining development potential is currently a common problem across locations.

The appeal of Orpington Town Centre is hindered by the competition from other town

centre locations with good public transport links and better office provision, such as

Croydon, or locations closer to central London. Such competing locations are also

suffering from significant vacancy rates and low rents, meaning that tenants do not need

to look to outer London for affordable rents at the moment. It was suggested that this

situation is not forecast to improve in the short term, and therefore the attraction of more

affordable town centre locations in outer London is not likely to return until the medium to

long term.

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Figure 28 – Existing Office Provision on Orpington High Street

Figure 29 – Existing Office Provision on Orpington High Street

Figure 30 – Existing Office Provision on Orpington High Street

5.42 Despite the various constraints identified, agents and developers recognised that Orpington

has the fundamental attribute of good public transport, plus it is close to the M25. It was

therefore felt that if improvements were made to Orpington through investment over the long

term, it might support further office development. One agent commented that he hoped, over

the long term, that the new Tesco store might encourage more money to be held in the town

rather than being spent elsewhere, and that this might have an overall uplifting effect. It was

suggested that any future development would be located near to the train station, rather than

the high street, providing similar premises to that offered in the purpose built blocks on Knoll

Rise. However, there remained the general concern as to whether Orpington could support

any additional office space.

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RECOMMENDATIONS

5.43 The opportunity for office market investment and development within Orpington town centre is

intrinsically linked to the regeneration aspirations for the area. The need to ensure sustained

(and sustainable) economic growth within the area, including employment opportunities for

local people is of strategic importance. This local role is key; investment within Orpington

should not seek to create an offer that competes with the likes of Bromley Town Centre, but

rather recognises its local service provision and employment role in the context of its market

town character, relationship with the surrounding areas, and its scale.

5.44 Notwithstanding investment plans for the public realm, and individual developments that are

coming forward within the centre (including the College and a town hall / community centre),

the main High Street is observed to be in decline with a number of empty premises. A recent

Tesco development has come forwards at the southern end of the High Street that may serve

to better anchor the town centre’s vitality and viability.

5.45 With the current office accommodation within the centre being primarily above retail

floorspace, with some purpose built premises on Knoll Rise on the approach to the train

station, the market is limited to largely secondary quality and nature stock. However, this

could be a market driver, relating specifically to opportunities to promote small business

growth in the future through the provision of premises at lower rental values and with more

flexible lease terms. The purpose built premises appear to be quite dated but of a relatively

good quality. Demand was identified for these premises, although vacancy was noted on the

site visits, suggesting sufficient capacity to accommodate this demand.

5.46 The secondary nature of the office market within Orpington Town Centre is driven by a series

of factors, including those summarised below:

The evidenced decline of the retail market within the Town Centre, with some conflict in

opinion of the potential impact of the Tesco development on retail prospects in the future

for existing premises along the High Street. At the current time, the lack of vibrancy on

the High Street is noted to be a constraint to attracting office occupiers, albeit the Tesco

development, along with the wider investment plans throughout the centre may create

some uplift in footfall.

The potential for new development within the Town Centre is considered to be unviable

due to low rental values achieved. Whilst low rents can attract occupiers into the market,

certainly this is the case when considering local occupiers and small businesses, this is a

key detractor from investment within premises and given perceived issues with the quality

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of stock within the centre (perceived as no condition survey has been undertaken) this is

a key perpetuating issue for the market area.

Orpington is found to compete with a number of established office market centres

including Croydon, Bromley Town Centre, both with strategic links to London, and indeed

with Central London itself. In the current climate with rental levels reducing, and vacant

stock, Orpington is struggling to distinguish itself in the market place as a real office

market proposition, certainly beyond local (i.e. Bromley) business occupiers.

5.47 However, in this context Orpington remains a relatively good location for local occupier

activity, certainly given public transport connectivity and low rental values. There is arguably a

two tier market in the area, with a distinction between the nature of occupiers that are within

the purpose built office premises on Knoll Rise, and those that are located above ground floor

retail premises.

5.48 It is important to ensure that an appropriate scale and quality of office accommodation

remains within the town centre to serve these markets in the future, although for the latter it is

likely there will need to be consolidation and investment in existing stock in the short to

medium term.

5.49 Office activity (including that above retail premises) should be protected and promoted within

the ‘town centre core’ where possible / appropriate, with opportunity to diversify in the wider

town centre area, including the promotion of residential dwellings above retail premises.

5.50 Recommendations for Orpington Town Centre to promote an appropriate office market role

and function in the future have been developed on the basis of analysis undertaken, and

community and key business stakeholder consultations. These recommendations are

summarised below. In this context the role of the Town Centre Manager within Orpington is

recognised to be a key opportunity to liaise with business need and opportunity.

The Council should not seek to allocate significant new office floorspace development

within Orpington town centre within the Core Strategy. Where possible the Council should

encourage development of this type into the core of the town centre. Such a policy should

allow for planning investment in the town (including public realm works but also the

College and town / village centre) to ‘uplift’ the local commercial activity. A restrictive

development policy should also encourage investment in existing premises across the

area. Policy should seek to protect office activity in the ‘town centre core’ including

existing above retail activity and purpose built floorspace where appropriate within this

centralised area of Orpington.

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The Council should promote a positive planning approach to the conversion of office

premises in the wider town centre to residential dwellings to facilitate the protection and

consolidation of office premises within the town centre ‘core area’ (defined to be along the

High Street and Knoll Rise between the A232 Spur Road and Homefield Rise in the

main), and within the stock most suited to this use. A study into the existing stock,

including condition, should be undertaken to test residential capacity, and identify specific

areas within the Town Centre where such an approach would be appropriate.

Development opportunity (including potential redevelopment) should be promoted in the

existing purpose built office area on Knoll Rise, benefiting from adjacency to the town

centre, but also the train station as a strategic connection. Any new development in this

location should respect the scale of the town centre, and if remaining the existing office

buildings, and not seek to significantly increase floorspace capacity in the town centre.

This area should be a key focus for future public realm/place-making improvements as an

important commercial gateway. It is recognised that this is a long term aspiration given

the nature of the existing buildings (and therefore limited development or redevelopment

opportunity in this area in the short and medium term).

The longer term (15 + years) emphasis should be on retention of and improvements to

the quality of premises within the town centre core, noting the role and function of

Orpington (including its scale relative to Bromley Town Centre) with long term stock still

requiring an interface with the small and indigenous business community / market

specifically. This includes the need to ensure affordable leases / rentals into the future to

support small and local business growth.

Investment in the public realm (including for example street planting, consistent use of

pavement materials, street lighting and other furniture), the delivery of the College, and

other building works underway within the Town Centre should be prioritised in the short

term (5 to 7 years) to enhance the current appearance, feel and function of the centre,

including the promotion and enhancement of its market town profile. It is important to

note that the scale of investment in the public realm should reflect the size of the town. In

this context it is important that attention is paid to consistency and building materials

throughout the Town Centre (and certainly the ‘core’ areas and routes) rather than, for

example, individual investments including significant public art installations.

Opportunities to promote initiatives including shop frontage investment, and management

of empty retail premises within the town centre should be considered. Reference is made

here to recent guidance published by CLG Looking After Our Town Centres (April 2009)

which is of direct relevance to Orpington Town Centre. Specific opportunities identified as

appropriate for declining town centres in this document include:

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- utilisation of empty space for e.g. local community space for meetings, space for

training providers, arts organisations looking for studio / rehearsal space;

- using vacant space to post information on e.g. healthy living choices, local fitness

classes; and / or

- opportunities to involve the local community in maintenance of empty space

including, for example, murals on empty shop-fronts by school children.

The Council should seek to encourage temporary use of empty premises through the

promotion of benefits to landlords such as temporary uses are classified as occupied

resulting in removal of landlord liability for empty property business rates, opportunity to

save on security and energy bills, etc.

Potential to use vacant retail premises as B1 uses, and/or small business workshops /

managed meeting spaces should be considered. The opportunity for the Council to

provide a small business service including meeting rooms to accommodate the activity /

needs of people working from home in the local area should be tested in the area

including viability testing / establishment of likely demand, costs and funding

requirements. A good example of this includes ‘EasyOffice’ space (including Easy Offices

(UK) and EasyOffices a line of the Easy Group).

From stakeholder consultation for this Study and the original Economic and Employment

Land Study the needs of ‘home businesses’ was considered an emerging issue within

Bromley, reflective of wider national trends. Increasingly agents, business support

agencies and business groups are recognising the desire for people to work from home

but have central facilities where they hold meetings or access other facilities normally

associated with offices.5 It is suggested that such a facility would be used on a ‘pay-per-

use’ or membership basis, and be open to businesses rather than the general public.

The Council should seek to confirm and promote whether planning permission is required

for temporary use of vacant premises for other uses. Local Planning Authorities (LPAs)

can use Local Development Orders (LDOs) to allow for change of use that would

otherwise require planning permission. It is anticipated that provisions will be made in

relation to the Planning Act 2008 that will remove the requirement for LDOs to be linked

with policies within Local Development Documents.

Information should be provided to small businesses relating specifically to business rates,

including: Local Authority ability to grant rate relief of up to 100% to a wide range of non-

profit making bodies, such as charities, and local clubs or societies; Small Business Rate

5 Ref: Property Week 24.07.09 “Take remote control” pp39

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Relief (SBRR) which applies to businesses that occupy one property offering rate relief

on a sliding scale depending on rateable value; and the opportunity to defer business

rates including that relating to the Chancellors announcement in March 2009 that the

Government will bring forwards legislation to enable businesses to spread payment of the

planned increase in business rates over the three years to 2011/12.

Summary of Actions

5.51 The key actions for Orpington town centre emerging from this study are summarised below.

Table 24 – Orpington Town Centre – Summary of Actions

Summary of Action Time Frame

The Council should not seek to allocate significant new office floorspace development within

Orpington town centre within the Core Strategy. The Council should instead seek to encourage

investment in existing premises and redevelopment of existing premises within the core of the

town centre. Policy should seek to protect and encourage investment in existing office premises

in the ‘town centre core’.

Ongoing

Council should seek to promote a positive planning approach to the conversation of office

premises to residential use outside of the town centre core in Orpington. A study into the existing

stock, including condition and scope for conversion, should be undertaken to test residential

capacity and suggest areas within the town centre where such an approach would be

appropriate.

Short Term

The delivery of investment in the public realm, the College and other building works underway

within the town centre should be prioritised by the public sector. Short Term

Opportunities should be sought to promote initiatives including shop frontage investment, and in

the short term opportunities to encourage the temporary use of empty retail premises within the

town centre for other uses.

Short Term /

Medium Term

Potential for a ‘use on demand’ meeting / resource facility for small businesses / people working

from home should be considered including more detailed / targeted consultation with potential

end users.

Short Term /

Medium Term

Advice should be provided by the Council to small businesses relating specifically to business

rates through appropriate / existing mechanisms and e.g. the Federation of Small Businesses. Short Term