Agenda item

Presentation by Nicki Jenkins, Head of Economic Programmes and Skills

Catherine Mayhew, City Centre Coordinator, delivered a presentation which was included in the online agenda following the meeting, providing detailed information on retail unit vacancy within the City Centre.

In summary, the following points were highlighted:

(a)  the twice yearly survey is undertaken by the City Council, in consultation with partners from the Retail Growth Forum, including Intu, considering the occupancy of private and council owned ground floor units within an identified City Centre area;

(b)  the core area considered in the City Council survey varies slightly from, and is smaller than, that considered by the national Local Data Company (LDC) survey which is expected to produce its results shortly;

(c)  the City Council survey produced detailed figures providing information on vacant units as follows:

(d)  at 13.0%, Nottingham’s retail vacancy rate is similar to the LDC GB shop vacancy rate of 13.4% as with 168 vacant units, this equated to a vacancy figure of 13%.  However, once the units which are unavailable (development pending), under offer and awaiting occupancy are deducted, this produces an adjusted vacancy figure of 9.4% which is the lowest rate in the city for the past 5 years, which compares favourably with the LDC overall retail and leisure vacancy rate at 11.9%;

(e)  also considered in the survey is the vacancy duration and vacancy hotspots.

(f)  a Vacancy Action Plan will consider what internal and external mechanisms can be applied to increase City Centre occupation.

Points raised during the meeting included:

(a)  some areas attract certain types of shop i.e. part of Mansfield Road is occupied mainly by shops selling chocolate and alcohol. This attracts specific customers and also behavioural issues which could deter other types of business from locating in that area. Instances such as this need to be considered as part of the vacancy action plan, possibly involving Community Protection Officers to assist in addressing behaviour issues;

(b)  mapping should be consistent as while the survey concludes that there are less vacant shops than 2 years ago, it is a concern that the boundaries do not match those of the LDC survey, which is what most national retailers will refer to;

(c)  private owners need encouragement to maintain the premises above the shops and possibly even adapt them for separate business use;

(d)  it is concerned that the cafe areas on High Pavement are not considered as part of the survey area;

(e)  Hockley is a key independent business area in the City but controls should be considered to prevent a potential shift from retail to leisure businesses such as cafes and bars;

(f)  the new Market Square was planned to include high-quality restaurant and food areas, so a shift from clothes and retail shops to fast food outlets would not be desirable;

(g)  the continuing development of student accommodation within the city centre is a long-term concern as once the current student market is saturated, this accommodation may not be of a sufficient standard to attract high quality residential occupiers ;

(h)  providing student accommodation in vacant office buildings within the City Centre is a positive move as it releases much needed family suitable housing in the suburbs. Student housing ensures that the City Centre remains vibrant;

(i)  market forces drive business, providing what people want;

(j)   it is difficult to attract larger brands to the City Centre until the appropriate quality and quantity of retail space can be provided;

(k)  the survey will help to inform the work of the Planning Policy Team although it should be noted that planning is not able to dictate the type of retail business which can occupy a premises, as long as it is designated as retail;

(l)  while some areas may appear a little outdated, no obvious drop in footfall is identified unless a destination business withdraws or moves elsewhere;

(m)  online shopping appears not to have had as much of an impact on  City Centre retail compared to out-of-town shopping centres and grocers as people are attracted to the choice of the City Centre leisure offer.

RESOLVED

(1)  to note the City Centre Vacancy Survey results as of May 2014;

(2)  for the following to be scheduled for future meetings:

(i)  student accommodation within the City Centre;

(ii)  Broadmarsh development update;

(iii)  City Centre transport schemes.