Property Market Studies Summary Paper

Property Market Studies Summary Paper

For the Renaissance: CMK Project

savills.co.uk

ANNEX A

Property Market Studies – Summary Paper


Contents 1. Introduction 2

2. CMK in Context 4

3. Summary of Key Findings 8

Savills Report to MKDP April 2017 2



1. Introduction

1.1. Background

1.1.1. Milton Keynes Development Partnership (MKDP) has commissioned this review of the residential, retail,

leisure and office property markets in Central Milton Keynes (CMK) in order to assist in the development

of an Investment Programme for Renaissance:CMK, one of the six big projects identified by the MK

Futures 2050 Commission.

1.1.2. The purpose of this project is to report on the potential demand for these property assets in CMK, to

inform a strategy for revitalising the city centre. For each sector (residential, retail, leisure and office) the

research will provide a description of:

1. History of each sector's performance in CMK

2. Current trends in the sector

3. The context of Milton Keynes

4. Issues facing the sector including viability and other local constraints to future growth

5. Potential future changes, including an analysis of the appetite for change in the CMK market

6. Suggested ongoing approach to enable support of each sector

7. Potential impact on other property sectors.

1.1.3. This report provides an overview of the key findings of the study into each sector against these key

research questions. We also provide recommendations for MKDP’s ongoing approach to support the

renaissance of the property market in CMK.

1.2. Structure

1.2.1. This study is divided into five reports, including this summary report and four individual reports for each of

the property market sectors. The reports include:

Executive Summary report – This report

Residential Property Market Study

Office Property Market Study

Retail Property Market Study

Leisure Property Market Study.

1.3. Our Approach

1.3.1. The overall approach for analysis of each sector is broadly similar:

An overview of historic and future market trends

Review of conditions in CMK including supply of existing property in CMK and comparison of CMK

to the wider area

Benchmark CMK with other comparable UK cities

Assessment of the future needs for each property market

A series of recommendations to support future investment decisions.

1.3.2. The following table presents an overview of the steps of the methodology and key tasks for this project.




Phase 1: Inception and Mobilisation

Inception meeting Site visit Literature review Review of land ownership, planned development, and future development opportunities Stakeholder consultation.

Phase 2: Supply and Demand Assessments

For each sector: o Commercial office o Residential o Retail o Leisure The following key tasks were undertaken: o Review of property supply o Review of property demand o Assessment of supply vs demand balance to 2050 o Comparable and aspiration benchmarking o Assessment of sector trends o Implications for CMK.

Phase 3: Development strategy development

Project workshop Cross sector analysis Implications for development across CMK Development opportunities Priorities for investment Draft and Final Reports.




2. CMK in Context

2.1. Study Area

2.1.1. This research is focused on Central Milton Keynes (CMK) as defined by the redline boundary in Figure 1.

This includes both CMK as defined by MK9 postal area and Campbell Park.

2.1.2. The Study Area reaches from the Milton Keynes Central Station in the west, to Campbell Park and Grand

Union Canal in the east, and is bordered by Portway Road (A509) to the north and Childs Way to the

south. Figure 1 identifies the standard grid labels used to identify each urban block within CMK (A-H, and

1-4). Research for all sectors focuses on this area hereafter refereed to as CMK.

Figure 1 CMK Study Area

Source: Savills, Ordinance Survey 2017.

CMK Redline Study Area including

MK9 and Campbell Park




2.2. Growth Context

2.2.1. Milton Keynes is one of the fastest growing regions in the UK and, as the centre of the region, CMK has

observed rapid growth over the last 10 years. Figure 2 presents population growth in CMK since 2002.

2.2.2. This indicates that since 2002 the population of CMK has increased by 79%, equivalent to 2,300

additional residents, with an annual growth rate of 4.6%. This is significantly in excess of the growth rates

achieved across wider Milton Keynes (1.5%) and the South East (0.8%). This demonstrates the changing

nature of CMK as a place to live, and the potential local markets and demand drivers for people living in

the centre.

2.2.3. Milton Keynes and CMK have both observed significant economic growth over a sustained period and in

2011 Milton Keynes was ranked 4th in the UK in terms of new business start-ups. With high employment

rates (over 70%) and a highly qualified working age population, MK and CMK have significant capacity to

grow the economy further.

2.2.4. Over 30,000 people work in CMK and the area attracts approximately 30 million visitors each year. The

centre has capacity to attract major commercial occupiers as evidenced by the Network Rail building

which attracted an additional 3,000 jobs.

2.2.5. CMK benefits from strategic transport connections to London and the vast jobs market it provides, and

with plans to enhance the connectivity between Oxford, CMK and Cambridge it has the potential to

expand the market capacity for economic growth.

2.2.6. The existing largest employment sectors in MK include retail and education, with warehousing and

transport, computer programming, and consultancy also providing the majority of jobs. However

compared to other centres, including Oxford and Cambridge, MK has a relative lack of higher order

occupations capable of unlocking significant value add and wage growth. The development opportunities

in CMK should consider the capacity of the city to attract new and emerging high value occupations.

Figure 2 Population and Population Growth in CMK

Source: Savills, Nomis, 2017

-2%

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Po

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CMK Population CMK pop Growth




2.3. Existing Land Use

2.3.1. CMK covers 335ha, equivalent to over 36 million sq ft of land. There are approximately 260 buildings

across CMK, covering a total area of 46ha (5 million sq ft) equivalent to 14% of total land area. The city

centre has limited high density space and is currently classed at the same density as a business park.

2.3.2. Figure 3 presents the existing extent of development across CMK. This identifies the main building cover

located in the centre of CMK at the main shopping malls, which cover blocks D3, D2 and E2. Campbell

Park open space is flanked by residential development opportunities to the north and south, while other

major development sites include land at B4.

2.3.3. Table 1 below presents and overview of the current rateable floorspace within CMK and relevant

densities. Please note that this does not include residential, public buildings or hotel accommodation.

2.3.4. This indicates that while Sui Generis uses represent the largest proportion of total plot areas (45%), office

buildings provide over half of the rateable floorspace (56%). This also indicates that the ratio between

office floorspace and plot area is the highest of all land uses, with office floorspace equivalent to 84% of

total office land plots, compared to 57% for retail space, and 13% for leisure uses. Overall this

demonstrates the low density nature of existing development across CMK.

Table 1 Retail, Office and Leisure Land Use in CMK (sqm)

Land use Total Plot Area % of Total Total

Floorspace % of Total

Proportion of

Floorspace to

Plot Area

Sui Generis 680,316 45% 3,776 15% 1%

Retail 408,889 27% 233,206 24% 57%

Offices 391,327 26% 328,224 56% 84%

Leisure 18,952 1% 2,402 2% 13%

Total 1,511,226 100% 568,674 100%

Source: Savills, Datcha, 2017




Figure 3 Existing Development Extent In CMK

Source: Savills, Ordinance Survey 2017.




3. Summary of Key Findings

3.1. History of Each Sector's Performance in CMK

Residential

3.1.1. Milton Keynes has been a high delivery housing market, consistent with its origins as a New Town,

although more recently it has become an above average housing delivery market. Only a small

proportion of recent residential development across Milton Keynes has been in CMK, with around 5% of

the city’s new homes sales being in MK9, which includes CMK and Campbell Park. Most activity has

been in suburban locations on the edge of the city. The most recent period of high development activity in

CMK was in 2007 and 2008, when more than 20% of sales of new homes in the city were in the centre.

Employment

3.1.2. Over recent years demand for office floorspace has been strong and largely driven by knowledge

economy sectors. CMK has a particular concentration in finance/insurance and professional services

activities. As a result the sustained level of demand the vacancy rate dropped below its equilibrium level

of 8% in 2014, and rental levels began to rise moderately. Over the past 10 years there have been

modest levels of new office development of a high specification, however much of the CMK office stock is

characterised by older stock that is yet to be refurbished and is of average quality.

Retail

3.1.3. The retail market in CMK has historically performed well across a number of metrics and is one of the

most successful town centre locations in the country. CMK ranks 30th in the UK for fashion goods

revenue, including regional malls and other key city centres (Geolytix, 2017) and analysis from CACI puts

Milton Keynes top of ‘The 2016 Hot 100’ for retail and leisure due to the size of the catchment area, the

population growth expected over the next 10 years, and the headroom for potential new retail and leisure

space. Retail property in CMK is dominated by the shopping malls of Centre:MK and Intu, and continued

investment has resulted in low vacancy and rents almost 2.5 times the PMA300 average.

Leisure

3.1.4. Like retail, the leisure property market in CMK is strong and dominated by large and unique operators

including the two malls, Xscape and the Theatre District. As such PMA score Milton Keynes as the 5th

best for leisure provision compared to other city centres. Supply has been driven by capturing combined

retail and leisure trips to the city, and has resulted in a dominance of branded leisure, F&B, and casual

dining with CMK currently ranked 8th in the country for branded restaurant supply, and 10

th in terms of

growth in branded restaurants. However leisure provision outside of the main core is weak where a

captive market is not present and there is poor pedestrian connectivity.




3.2. Current Trends in the Sector

Residential

3.2.1. There is proven demand for new homes in Milton Keynes. Rates of sale of new homes have been high,

house prices have increased significantly during the last year and developers are actively seeking land in

the city. This strong demand is the result of a combination of the affordability of the homes relative to

other connected markets and good access to jobs, both in the city itself and in connected markets. The

demand is not just for the purchase of new homes, there is strong demand for homes to rent. The

number of households renting privately in Milton Keynes has nearly tripled over the decade between the

2001 and 2011 censuses. The highest concentration of private sector renters is in the centre of Milton

Keynes where over half of households rent privately.

Employment

3.2.2. Rental levels in the CMK office market have increased in the past few years due to the diminishing supply

of available quality floorspace. The market is now characterised by too few options for office occupiers

and this is likely to result in some companies looking elsewhere for premises. Whilst there are several

sites with permissions for new office development and others which are being progressed there is limited

near term prospect of significant levels of new available floorspace being delivered. Rents are sufficient to

underwrite new development but only with significant occupier commitments. CMK is not on the radar for

many investors in offices and unless rents significantly strengthen to levels comparable with other growth

markets there is unlikely to be significant speculative development in the near term.

Retail

3.2.3. Retail consumer journeys are increasingly polarised between essential convenience trips and destination

and leisure trips. For everyday shopping trips, consumers are time poor, convenience and value is key,

and goods are typically essential and bought frequently. For destination trips, retail and leisure are

combined, higher-end goods are sought and the shopping experience is key. CMK currently provides a

strong destination offer, but a comparatively weak convenience offer due to the lack of a local residential

community.

3.2.4. Also, increasingly consumers have a more civic based outlook, with a general appetite to increase time

spent locally and socially. This has raised the importance of a civic core and town centre which are not

just places to shop, but also places which provide a mixed use, multi-occasion and social role to support

both destination and convenience. Placemaking is central to this theme.

Leisure

3.2.5. In the leisure sector, experience remains key, and demand is diversifying. Major shifts in demand have

seen the emergence of boutique cinemas, which are now attractive anchors for major developments,

independent bars and restaurants, budget and flexible gym memberships. The rise of e-commerce and

the sharing economy is having impacts on accommodation, take away food, casual dining, and ticket

sales. Also greater connectivity and interaction means modern leisure consumers are more aware,

quicker to react, and greater participants in a range of leisure activities. They increasingly support a range

of social and communal activities, including museums, galleries, performance, live music, and ad-hoc,

temporary offerings. These trends are particularly key for city based residents who are generally keen to

explore the urban environment and interact with city based leisure offering.




3.3. The Context of Milton Keynes

Residential

3.3.1. Given the economic strength of Milton Keynes and its connectivity to less affordable housing markets with

strong employment growth, there is market capacity for Milton Keynes to be a high housing delivery

market rather than an above average housing delivery market. In this context higher levels of

development in the city centre would not displace take-up of suburban new homes. If the intensification of

the city centre achieves its objective of increasing city centre vibrancy it would add to demand for homes

in the more suburban locations.

3.3.2. We estimate that 2,500 homes or 5,980 people could be accommodated in the whole of Milton Keynes

per year based on historic high delivery rates in the city, benchmarks of high supply in other similar

markets, strong demand and scope to diversify the type of products supplied in terms of tenure, type and

location. Of this we expect that up to 20% (500 homes per year) could be accommodated in CMK.

Employment

3.3.3. The office market is situated within an area with a relatively high level of entrepreneurism (on par with

Reading). Employment growth in CMK and the wider area has been strong and there are some sources

of potential economic growth that could drive further office floorspace demand in the market. CMK’s good

transport links to Central London and strong economy provide a good foundation for the office market to

continue to expand at a moderate pace. However it is likely that a step-change in demand and significant

new supply of high specification offices will only be achieved if the development context for offices is

incorporated into a holistic approach to the regeneration of CMK. Based on historic trends the net

demand for office floorspace is anticipated to be about 6,000 square metres (64,000 square feet) per

annum. This is equivalent to about 500 new office-based employees per annum.

Retail

3.3.4. The destination retail and leisure appeal is very successful in the regional and national context, with most

key brands having requirements for the town. CMK serves a catchment of approximately 1.4 million

people within a 45 minute drive time, with 98% of consumer spend retained in the core Shopper Town

area, and a further 22% of spend coming into the catchment from outside. This demonstrates the

significant regional appeal of CMK and its capacity to support major retail and leisure uses. However,

more locally CMK faces some competition from assets within wider Milton Keynes, most notably from

MK1. While CMK remains the dominant location for retail, tight planning regulations have restricted new

development, and dominance of malls has restricted access for independents. By 2030, CMK could

increase retail and leisure floorspace by a maximum of 475,000 sqft, subject to other uses developed in

the town centre.

Leisure

3.3.5. The context for leisure is similar to retail, and the projected demand for 475,000 sqft should include an

appropriate mix of both leisure and retail uses. Leisure in CMK faces some competition from elsewhere,

including MK1 which currently supports major hoteliers, restaurants, and conference facilities. However

there are opportunities for CMK to leverage on these assets and become a location for people to base

their visits to the wider area. This creates demand for a range of accommodation offers, high quality

designed and connected public realm, unique and iconic buildings, mix of uses, cultural and social

offering, and night life.




3.4. Issues Facing the Sector Including Viability and Other Local Constraints to Future Growth

Residential

3.4.1. To test for the deliverability of higher density residential schemes in CMK we have reviewed the evidence

of higher density development in UK city centres with broadly comparable levels of house prices and

rents. Across the UK and excluding London we have seen an increase in development of flats in higher

density city centre locations over the last year. This increase is partly demonstrated by annual sales of

new flats in such locations, which have increased from around 1,000 to around 1,500.

3.4.2. We have reviewed residential and student housing development activity in the city/ town centres of

Manchester, Birmingham, Reading, Southampton, Sheffield and Slough. Most of the activity has been in

Build to Rent schemes, alongside student housing development, both of which have been forward funded

by institutional investment. In most cases there is a very substantial volume of development under

construction. Build for sale developments have become more common in Manchester and Birmingham,

including higher density schemes that have included off-plan sales to overseas investors and mid-rise

edge of city centre schemes that have been developed by house builders. In the latter case sales include

off-plan sales to domestic investors, as well as sales to owner occupiers, typically comprising first time

buyers using Help to Buy and downsizers.

Employment

3.4.3. In spite of relatively stable demand for office floorspace and the availability of good sites in reasonable

proximity to the rail station the level of new supply of high specification offices has been modest. Despite

the relatively strong rental growth in the market since 2015 rental levels remain marginally viable.

Comparable office markets which exhibit similar levels of demand such as Birmingham, Reading, Oxford,

and Cambridge exhibit prime rents that are significantly above those of CMK. This discrepancy may be in

some part due to the physical nature/layout of CMK’s office market environment which does not reflect

current trends which are characterised by a higher density and greater variety of uses in close proximity.

It is widely recognised that these characteristics are an important element for attracting and retaining

knowledge economy talent, occupiers and investors.

Retail

3.4.4. CMK has benefitted from single ownership schemes and a strong mall appeal, but high rents and limited

flexibility in unit sizes has aided an increase in competition outside of the town centre. Planning

constraints and the urban gird design, often with large car park space or roads separating different

schemes, has fragmented the offer. Future growth should seek to better integrate a range of town centre

units to help improve vitality.

Leisure

3.4.5. As with the retail sector, the success of the main retail and leisure centres has resulted in a limited

diversity of offer, with a focus on branded, family based leisure attracting visitors from the surrounding

areas. There is little capacity for innovative or independent occupiers, and limited focus on the visitor

economy or for immediate residents of the city. Growth in the residential and workforce communities in

the city will create demand for a mixed use development approach accommodating smaller floorplates. In

order to attract people to live, work and visit the city would require a transformation in the urban structure

and identity of CMK. This may include development which creates a sense of place, community identity,

promotes interaction and activity and generates footfall across the city.




3.5. Potential Future Changes Including an Analysis of the Appetite for Change in the CMK Market

Residential

3.5.1. Vibrant high density mixed use development can unlock a city centre price premium for new homes. As

an example, for the first time sales values at the top end of the central Manchester market are matching

those achieved in the prime southern suburbs, reflecting the increased attractions of living in central

Manchester, following extensive high density mixed use redevelopment.

3.5.2. The pipeline of UK schemes funded by Build to Rent (BTR) investors is growing. To date 7,800 new BTR

homes have been completed in England and Wales and another 48,000 BTR homes are currently in the

pipeline of construction and planning. The majority of BTR stock completed to date (71%) has been in

London. However there is increasing activity outside the capital – 50% of BTR homes under construction

and 40% of BTR homes in planning are in the regions.

Employment

3.5.3. There are a range of regional growth sectors that have the potential to contribute towards a step-change

in demand for office floorspace in CMK. These include manufacturing and advanced technology, digital

media, and life sciences amongst others. The prospects for these sectors at present are neutral to

positive. There is also considerable employment activity in the wider region, some of which could be

attracted to CMK under the right circumstances. CMK is well-connected to other core locations, provides

flexible space for start-ups and SMEs, is in an area with a relatively strong entrepreneurial environment,

and is competitively priced for office occupation and housing. This provides a sound basis upon which to

achieve a step-change for the office sector. However there may be a need for occupiers and investors to

see a evidence of a more concerted effort to enhance CMK’s office market environment. Our analysis of

demand scenarios looked at growth rates of between 1.5% and 4.5% of occupied floorspace. The

scenarios result in annual rates of net floorspace take-up of between 5,500 and 18,700 square metres per

annum in the near term. Take-up based on historic trends is about 2.5% per annum growth in occupied

floorspace whilst the highest growth scenario (akin to that of the Cambridge City Centre) is about 4.5%.

Retail

3.5.4. We have identified the potential for 260,000 sqft to 475,000 sqft additional retail and leisure floorspace

by 2030. This demand is closely linked to the quantum of residential and employment uses delivered

during that period. To date and subject to planning, 340,000 sqft is already in the pipeline with Intu’s

extension, Hammerson’s The Point and Hermes Food Centre redevelopments. We have undertaken

consultation with key retail landlords in CMK in order to identify the key issues, concerns and challenges

associated with improving the town centre proposition. We found that the various landlords are all

broadly on the same agenda and are keen to work together to create a stronger more cohesive centre.

Between discussions with different stakeholders the same themes tended to emerge.

Leisure

3.5.5. Retail and leisure demand are interlinked and will be driven by growth in the residential and employment

workforce in the city. New mixed-use schemes across the city will support increased demand and

diversify the offer away from the existing dominance of the shopping malls. Creating a more liveable city,

which can attract visitors, residents and workers to experience the cultural and social offering of Milton

Keynes will be important. Potential transformative changes to the city may include a policy of

densification, a university campus, or reconfigured public buildings to create a civic core.




3.6. Suggested Ongoing Approach to Enable Support of Each Sector

Residential

3.6.1. Built To Rent is a significant part of the market opportunity to intensify Central Milton Keynes. Student

housing would be a highly complementary market opportunity should a university campus be developed

in the centre. Both forms of accommodation see high rates of market absorption, which would boost

footfall and support the financial viability of new retail and leisure uses, as part of the overall

intensification.

3.6.2. The BTR sector is forecast to continue to expand and become more established as an asset class. There

is enough institutional capital pointing at BTR for it to reach the £60bn size of the US Multi-Family sector.

This could add 15,000 homes to housing supply nationally every year until 2030. Further ahead

improvements in infrastructure including HS2 and East-West road and rail links are anticipated to support

growth in Milton Keynes. Driverless cars are likely to become more common meaning that fewer car

parking spaces will be needed for new developments. As a result existing at grade, and any undercroft

parking built, will need to be flexible enough to be converted to other uses should demand for car parking

reduce.

Employment

3.6.3. To support the office market’s ongoing growth in the near to middle term the council and MKDP should

continue to take a flexible, proactive approach towards bringing forward sites, encouraging development,

and facilitating higher densities where appropriate. MKDP should also seek to encourage greater variety

and vibrancy in the city centre environment through the introduction of a mix of uses and public realm

improvements. Institutions such as a university which could create synergies with office occupiers are

likely to bolster the office market. Based on the CMKAP there are potential constraints on land available

for office development which suggests a need to consider how the form and location of offices new office

development in CMK could evolve.

Retail

3.6.4. The key demand for further retail (and leisure) development should be focussed in the ‘core area’ located

between the shopping centres, Theatre District and Grocery Centre. Other community town centre/civic

uses are currently disjointed from the retail and leisure area and CMK therefore lacks the feel of a town

centre and is more akin to a regional shopping mall and business park. Increased integration of different

property uses would help improve the town centre vitality. Low density car parking spaces and the grid

road infrastructure has constrained development, but increased flexibility of the urban design would

provide significant opportunity to make improvements. Increased public realm/civic uses between key

assets would encourage walking, dwell and integration of uses as a combined offer.

Leisure

3.6.5. There is a need to support land holders who are currently planning for major development in CMK to

consider the wider strategy vision for the city to support all property sectors. This requires articulation of

an overarching vision and direction for CMK to be outward looking, connected and deliver high quality,

liveable and welcoming public realm. There is also the need to provide a new civic core and target other

key gaps in leisure including high end accommodation, boutique entertainment, independent and diverse

night time economy and greater cultural offer (live music, museum etc).




3.7. Potential Impact on Other Property Sectors

Residential

3.7.1. There is an increasing body of evidence that demonstrates how a diversity of property uses, fronting on to

high quality walkable public realm that connects these uses, creates vibrant active places for which there

is high demand from both residents and workers. Precedents that have demonstrated higher property

values include Spinningfields in Manchester, as well as numerous regeneration schemes in London.

3.7.2. The optimum ongoing development of CMK will provide a mix of uses, fronting on to high quality walkable

public realm that connects those uses. Residential demand will be enhanced significantly within a

walkable distance of these new vibrant active places. Therefore a vibrant retail and leisure offer in the city

centre, connected to homes and workplaces via walkable routes, is crucial to optimising the residential

capacity of CMK.

Employment

3.7.3. Positive developments in the office market such as an increase in the level of floorspace demand and

more high specification offices will have a positive impact on all other property sectors. Office sector

workers, especially those working in fields within the knowledge economy, tend to have higher levels of

disposable income which could be spent in CMK, especially if there were more opportunities for spending

on retail, services and leisure. There would also be benefits to the residential sector for the simple reason

that more office-based workers means there would be higher demand for homes.

Retail

3.7.4. There is a strong synergy between retail and leisure property, with consumer journeys typically merged

between these uses; particularly F&B. Any retail development needs to account for the appropriate

leisure offer. The outdoor market area provides an important resource, but with improvements could drive

new demand, provide a point of difference and extend operational efficiency.

3.7.5. The key determiner for retail capacity in CMK is driven by growth in demand from the wider catchment,

with the actual housing delivery (rather than targets) being paramount. Further demand for convenience

and service retail in CMK would be driven by an increase in city centre living and working population.

Additional residential or office development would require a modest amount of retail to support the micro-

location need. However, a marked increase in the residential population in CMK could provide an

important catalyst for improving the offer in the ‘retail and leisure core’.

Leisure

3.7.6. As discussed, leisure property is intrinsically linked with retail, and a cross cutting theme through all

sectors is the potential for mixed use schemes to deliver a wide range of benefits. Leisure development

itself cannot unlock potential for new residential and employment opportunities, but is an important

element in making the city a liveable and attractive place.




3.8. Recommendations

Residential

3.8.1. There is significant market capacity for intensification of CMK via residential development. Demand for

residential development in CMK would not displace demand elsewhere and would support greater

diversity in retail and leisure uses in the centre

3.8.2. Priorities for the residential property market include:

Student housing linked with new campus

Build to Rent sector housing

Medium and high density build for sale schemes

Mixed use development schemes

Connectivity and transport improvements to act as a catalyst to unlock development.

Employment

3.8.3. The form and location of future office provision should be considered so that it is more supportive of a

dense and diverse environment reflective of current office market trends.

3.8.4. Priorities for the office property market include:

Mixed use development with integrated uses to create attractive, vibrant, and interesting space

Support sectors that will help retain talent and younger workers in CMK

Facilitate variable / non traditional forms of office-based work

Analyse potential spatial evolution of the office market to address supply constraints in light of

potential high demand. This needs to consider development strategies in which demand exceeds

the current supply of available / allocated office floorspace and land as per the CMK Alliance Plan.

This may require higher density development or release of additional land.

Retail

3.8.5. The retail offer in CMK performs well and while there improvements that can be made the space required

to achieve this is modest. Our conclusions therefore show that it is not specifically the retail and leisure

offer in CMK that requires a significant improvement or increase in provision, but instead other typical

town centre uses.

3.8.6. Priorities for retail property market include:

Retain the retail and leisure focus on the core (blocks D2/D3/E2/E3/E4), as the centre of consumer

activity

Additional space should focus on more socially orientated retail and leisure

Consider the approach to a market stall led scheme

Support convenience retail and leisure services as part of mixed use residential and office

development

Review urban design and planning restrictions in the central retail and leisure core to improve

pedestrian flows between different town centre uses and allow uses to merge together in a high

quality, outward looking, and welcoming public realm

Consider the realignment of the area between Centre:MK and the Food Centre along Midsummer

Boulevard with the market being rehoused in a modern purpose built scheme, with and improved

F&B offer.




Leisure

3.8.7. The leisure and retail property markets are similar in terms of ongoing demand profiles and drivers. The

key to achieving a successful leisure offer will remain the experience for the consumer and diversity of

activity which will continue to bring people back.

3.8.8. Priorities for the leisure property market include:

Support schemes which are:

o Mixed use

o Focus on quality of place and connectivity with other uses

o Deliver diverse leisure experiences

o Support a safe, well connected and well planned night time economy

There is potential for analysis of the night time economy and development of a night time economy

strategy which can support in changing the image and expectations of CMK

Focus investment in schemes which can act as a catalyst for regeneration and create a liveable

city centre which people continue to explore, including:

o A well connected and consolidated civic core

o Placemaking and social interaction facilities – including community facilities

o Development which diversity the leisure market – hotel accommodation, university campus,

new residential and employment offer.

3.9. Next Steps

3.9.1. We suggest that next steps include:

Review and finalisation of the property market studies and recommendations

Use the work to inform preparation of specific development briefs for public sector owned

development plots/land

Use the work to inform and facilitate other elements of the Plan:MK vision, for example including

the possibility of a new city centre university

Use the work and recommendations to inform a revised/refreshed development framework for

CMK.

3.9.2. We anticipate the work on a new development framework would explore appropriate ways to adjust and

develop the urban form to promote better integration of uses and a more inviting and permeable

environment.

Property Market Studies Summary Paper

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Transcript of Property Market Studies Summary Paper