Final Report Economic Research - Employment Land - Adur District

Final Report

Economic Research - Employment Land Prepared on behalf of Worthing Borough Council

October 2009

Prepared by

Knight Frank

55 Baker Street

London

W1U 8AN

Final Report Economic Research - Employment Land Prepared on behalf of Worthing Borough Council October 2009

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Contents

Executive Summary 2

1.0 Introduction 12 2.0 Economic Audit 14 3.0 Planning and Economic Development Policy Review 31 4.0 Audit of Existing Employment Stock 46 5.0 Property Market Assessment 76 6.0 Forecasting Employment Demand and Floorspace 103 7.0 Appraisal of Key Sites 113 8.0 Conclusions and Policy Recommendations 137

Appendices

Appendix I Stakeholder Questionnaire Appendix II Map of Town Centre and Edge-of-Centre Offices Appendix III Forecasting Methodology Appendix IV Potential Protected Office Areas


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Executive Summary

Introduction

Knight Frank LLP was commissioned by Worthing Borough Council in July 2009 to undertake

economic research into the supply and demand of employment space within Worthing Borough as an

aid to formulating policies within the new Local Development Framework over the period up to 2026,

and devising actions and tasks within the new Economic Development Strategy.

This report presents an update to the 2005 Worthing Employment Land Review produced by Step

Ahead Research Ltd taking into account the current property market conditions prevailing in Worthing

Borough, as well as an assessment of how the local economy is set to change in future years.

Socio-Economic Profile

The economy of Worthing is diverse with a strong manufacturing base with key employers such as

GlaxoSmithKline, Eurotherm, and B&W Loudspeakers, as well as a significant service sector, led by

large public sector employers such as Inland Revenue, West Sussex County Council, Worthing

Borough Council and the Environment Agency, and financial firms such as Equiniti.

Despite major concerns expressed by the business community about the transport network, there is

unlikely to be any major investment in the strategic road network in the short / medium term. This

may impact on inward investment and future growth prospects of existing businesses.

Population change has a direct effect upon the workforce available to businesses in Worthing.

Population forecasts suggest that Worthing will experience a slight increase in population of 3,000

people between 2006-2026. The growing resident population and rising prices have contributed to

increasing competition in the borough for land between different uses. In addition, while the town still

has a high proportion of elderly residents, this has been reduced over the last 30 years by some

15%.

The major increase in jobs has been in the service sector, which has increased from 32,760 (83.3%)

in 1995 to 39,200 (88%) in 2007; the main increase has been in public administration, education and

health. The continuing growth of service sector employment is likely to increase demand for office

space, specifically modern office accommodation in more accessible locations with good parking.


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Employment forecasts suggest that services are projected to be a key foundation for economic

growth, with prospects of growth appearing to be strong after the recession. Growth of business

services will require the provision of high quality office space.

Worthing has above average employment in lower-value employment sectors, specifically

elementary occupations. Attracting inward investment projects will be important to provide higher-

value employment opportunities.

The rate of business formation in Worthing over the period 1994-2007 (i.e. growth of VAT registered

businesses) at 21% has been lower than in West Sussex, at 26%, and in the South East and 32%.

As with the rest of the country, Worthing is experiencing a significant increase in unemployment,

specifically among those with low skills (elementary occupations) and in traditional industrial sectors.

As with the rest of the Sussex coast, Worthing has some significant pockets of economic and social

deprivation.

Planning Policy Framework

The emerging national planning policy guidance on employment uses seeks to promote sustainable

economic development through the promotion of existing and new sectors of the economy, and the

regeneration of derelict land and buildings that are well served by public transport. This is a

particular challenge in Worthing, as the Borough has major congestion issues, that makes certain

out-of-town areas more accessible by car than public transport and therefore attractive to the

developer and occupational markets.

There is also a greater emphasis placed on local planning authorities, not to carry forward historic

employment allocations, where the prospect for development is unlikely.

In addition at the national level, the reaffirming of the ‘sequential approach’ to site selection for B1

office uses within the draft PPS4 is another challenge that needs to be thoroughly considered when

spatially planning office uses. Whilst, office uses help to bring activity and expenditure to a town

centre, the respective values compared to retail and residential uses, coupled with the complexities

and significant costs associated with developing in town centres, often make new office


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developments unviable in town centres. A more pragmatic approach may therefore be needed to

ensure that local planning policies do not stymie the development of new offices in future years.

At the regional level, the Adopted South East Plan seeks to promote the development of key sectors

(which are identified in the Regional Economic Strategy), by ensuring a flexible approach to planning

for land and buildings that promote the elements of ‘Smart Growth’ through the use of ICT, whilst

helping to drive economic competitiveness. How we work is constantly changing and evolving, as

the use and power of ICT allows companies and individuals a greater freedom to work footloose, and

in some cases without a permanent work base. The challenge for Worthing is to ensure that there is

a range of workspace choices for different types and sizes of businesses within the Borough, some

with support services and the latest ICT advances to ensure that businesses can grow and stay in

Worthing.

As a linked point, the supply of employment stock also has to evolve and change as working

practices and sectors of the economy change, and in this regard, there will be certain elements of the

existing Worthing employment stock that are not ‘fit for purpose’, requiring regeneration. The South

East Plan promotes the renewal and upgrading of existing employment stock, although along the

Sussex Coast, including Worthing the values in some cases will not merit a comprehensive

refurbishment or redevelopment, and therefore the challenge will be to unlock these sites.

At the local level, the Revised Core Strategy sets out a series of policies protecting the loss of

employment uses and identifies a number of key sites that require a bespoke employment policy to

protect and promote employment uses.

Supply-Side Characteristics

The general trends in the Worthing property stock over the last ten years (1998-2008) have been a

rise in the quantum of office space, a fall in factory space, and a rise in warehouse space. This

mirrors the wider economic trend, with a decline in manufacturing, and growth in the service sector,

with demand for warehousing space driven by changes in the retail sector.

The Borough has ten key industrial estates or business parks, providing 70% of the total employment

stock. These, predominantly industrial areas, are well occupied, with an average vacancy rate of

only 8.5%, and only two estates (East Worthing and Goring Business Park) with vacancy rates over

10%.


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The quality of the key industrial estates and business parks is mixed, with the predominant type of

space classified as ‘Grade B’. ‘Grade C’ or derelict space (Grade D) accounts for 30% of the stock.

Several estates have a high proportion of Grade C and D space, including Canterbury Road, Station

Road and Ivy Arch Road, although these areas also have some of the lowest vacancy rates in the

Borough. This demonstrates that poorer quality stock appears still to be attractive to certain

occupiers. Within the other estates, there are pockets of under-utilised or vacant Grade C and D

space that require investment, including:

o The large unit fronting Southdownview Road at Broadwater Business Park;

o The cluster of vacant units at Dominion Way West within East Worthing Industrial

Estate;

o Former Whiteheads Fabric Building within East Worthing Industrial Estate; and

o The large derelict building at Woods Way, Goring Business Park.

Of all of the key employment areas, Station Road is perhaps the one area that has major locational

constraints, being situated along a narrow residential street. Whilst the eastern end of Station Road

has a cluster of modern units, the remainder of the street has pockets of predominantly car repair

garages. There have also been some recent changes of use to residential.

The office stock is located across the Borough, although the majority of space can be found at out-of-

town locations, due to the presence of some major occupiers, such as Inland Revenue and West

Sussex Primary Care Trust at Goring, Southern Water, Equiniti and West Sussex County Council at

Durrington, and EDF Energy at East Worthing. The most recent office development within the

Borough can also be found out-of-town at Yeoman Gate. This demonstrates that out-of-town

locations remain attractive to occupiers, especially those requiring large floorplates that are difficult to

secure within the town centre.

There are some important office areas in edge-of-centre locations, especially around Worthing

Station, Little High Street/High Street (north), Farncombe Road, and Grafton Road and Crescent

Road. In these locations, there is mixture of Regency, 1960s/70s and more modern buildings. The

most recent stock has been developed in the Little High Street/High Street (north) area. There are

generally more opportunities within edge-of-centre locations, compared to the town centre, to create

stand-alone office buildings with larger floorplates. The majority of the stock is classified ‘Grade B’,

although there is also a considerable amount of ‘Grade C’ stock. Key occupiers include MGM


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Advantage at Heene Road, Inland Revenue at Railway Approach and Parexel MMS Europe at High

Street (north).

Within the town centre, there are several large occupiers, such as Worthing Borough Council at

Richmond Road, Environment Agency at Chatsworth House, and Department of Work and Pensions

at High Street, although the majority of businesses occupy offices of up to 5,000 square feet. There

are some key office areas within the town centre including Liverpool Terrace/Liverpool Gardens,

Chatsworth Road, Chapel Road, and North Street/High Street. The majority of space tends to be

‘Grade B’, although there are pockets of ‘Grade C’ space, along Chapel Road and Warwick Street in

the form of 1960s buildings and low grade suites above shop units.

The cost of car parking has been highlighted as a key issue for office occupiers within the town

centre, and can be viewed as a key ‘push’ factor. This issue requires a collaborative response from

the Council, landlords and occupiers to find an appropriately satisfactory solution.

The provision of serviced or managed workspace within the town is limited, especially as Worthing

has a good base of small businesses, with the opportunity to develop more business start-ups in

future years. A business incubator or innovation centre is lacking within the Borough, and the

presence of such a facility would help to develop the business base of the town, especially in key

sectors such as pharmaceuticals, advanced engineering and creative industries.

Demand Dynamics

The UK commercial property market has been severely impacted by the economic downturn.

Investment and development activity and, more recently, levels of occupational demand have

reduced substantially amid the recession. Worthing has not been immune to these developments

and it therefore is important that local policy aspirations takes into account the weaknesses in the

commercial property market over the short to medium term and their impact on occupational and

development activity.

Worthing is not a key employment location within the South East, with Brighton, Crawley/Gatwick and

Southampton/Portsmouth the more attractive destinations for office and industrial/warehousing

occupiers. Reflecting this, the level of inward investment into Worthing has been extremely limited for

the past 20 years, and agents do not view Worthing as a key employment location to cater for major

requirements within the wider national and regional market.


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In the Worthing office market, demand is characterised by churn from either long-established or

indigenous firms seeking better quality space or space for expansion. Large requirements are rare,

with the focus of the demand comprising sub 5,000 square feet units, especially within the 500-2,000

square feet range.

Close to 50% of the office take-up has occurred out-of-town, due to a combination of two large

transactions occurring in this area and the recent development of Yeoman Gate. Yeoman Gate was

taken-up aggressively, offering high quality space with good accessibility and car parking which is

lacking in the town centre and relieving pent-up demand for new freehold units.

This outward movement westwards by office occupiers reflects both the issues of the town centre

stock, in terms of quality, size and car parking, the congestion issues in the town, as well as the fact

that development tends to be more viable in out-of-town locations. Lack of supply of Grade A stock

in the town centre, rather than lack of demand, is key to explaining the apparent westward movement

by occupiers in recent years. Potential exists for high quality multi-let office buildings within the town

centre, similar to Chatsworth House, which has proved popular. However, the quality of town centre

supply will be difficult to address given the lack of sites and the costs of development. There is likely

to be continued demand for space in out-of-town locations, especially if new development is not

forthcoming in town centre or edge-of-town locations, and if the issues of town centre car parking

persist.

Our analysis has revealed that the amount of available office space on the market in Worthing is not

considerable, equating to 14% of total stock, or just 8% where The Warren at Hill Barn Lane (a large

single occupier building) is excluded. This equates to a supply of between 3-5 years based on

historic take-up levels.

In terms of the current mismatch between supply and demand, the office market is generally in

balance, although there is an apparent under-supply of available units of 5,000-10,000 square feet,

and a couple of requirements for circa 15,000 square feet. The former Lloyds Building at The

Causeway and The Warren, Hill Barn Lane, if ‘broken-up’ and offered to the market for multi-

tenanted occupation could help to address this mismatch.

Grade C office stock is generally oversupplied and not attractive to the market, and within the town

centre there is cluster of poor quality suites and buildings at Chapel Road and Warwick Street, which


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needs to be reconsidered in terms of its long term role, especially with the significant costs of

refurbishment.

The industrial market is holding up well in the recession, although landlords have been under

pressure to reduce rental values to secure lettings to avoid Empty Rates. Demand is also

characterised by local and sub-regional occupiers seeking expansion space. Demand is focused at

the smaller end of the market, with units of less than 5,000 square feet in demand, followed by some

demand for units between 5,000-10,000 square feet. Transactional activity has also been focused

on Grade A stock at locations such as Downlands Business Park and Northbrook Business Park. In

the case of Northbrook Business Park, the availability of new freehold units was key to its success,

and agents consider that there is scope for additional such schemes in Worthing when the market

returns.

Our analysis has revealed that the amount of industrial stock on the market in Worthing is not large

at 8% of the total stock. This equates to a supply of 2.5 years based on historic take-up level, which

is considered low in a stable market.

In terms of the current mismatch between industrial supply and demand, there seems to be a general

undersupply of Grade A stock, with historic take-up significantly above the current available stock,

with Grade B more or less in balance, and an over-provision of Grade C stock. There also appears

to be a dearth of units to cater for demand between 5,000-10,000 square feet and to a less extent

between 20,000-50,000 square feet.

Due to the general low industrial vacancy rate, and lack of Grade A stock, there should be scope for

renewed development activity for new space when the market returns.

Economic Forecasting

The use of economic forecasting and other indicators of future employment floorspace requirements

always need to be treated with caution, due to the timing and nature of the forecasts. They should

be used as a guide, requiring regular updating.

The Experian employment forecasts applied for Worthing indicate that growth in the service sector of

circa 4,900 jobs should result in an increased need for additional office stock up to 2026. In addition,


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the manufacturing sector, and sectors driving demand for warehousing will experience a decline in

employment of circa 200 jobs to 2026, and at face value potentially no additional need for industrial

stock.

The amount of office floorspace required to be delivered in Worthing up to 2026 is anticipated to be

circa 240,000 square feet, with the completion of Yeoman Gate taken into account.

However, for industrial and warehousing, we also consider it important to assess other indicators of

future floorspace demand – i.e. completions. The analysis of data held by the Borough Council

indicates that where the stock of Grade C/D premises can be renewed over the period up to 2026,

there is still likely to be a shortfall of circa 180,000 square feet, which will need to be developed on

vacant land.

Key Opportunity Sites

The land at Martlets Way has some significant deliverability issues, particularly in relation to the costs

of accessibility and off-site highways works. Due to the separate ownership within the site, and the

nature demarcations, it will be difficult to bring forward the entire site for employment uses, especially

given the development issues. However, there may be an opportunity to enable the development of

new employment uses through residential development that helps to fund the necessary highways

improvements. A masterplan for the whole site is recommended.

The plans for upgrading Northbrook College are still in a state of flux, with both the Durrington and

Broadwater Road campuses being assessed in terms of capacity and value terms. Both sites would

be attractive for employment development, especially the Durrington site, which could deliver both

industrial and office floorspace, as an extension to Yeoman Gate. In addition, the concept of a

business incubator should be explored with Northbrook College as this would provide an important

base for innovation and business generation in the Borough.

The Warren, Hill Barn Lane is a large office complex, set within a mature campus, and the impending

vacancy by Aviva will release a significant amount of office stock onto the market. The site should

provide an opportunity to ‘break up’ the building to provide smaller office units for the market,

although the amount of space available on site is unlikely to make it an attractive proposition for an

investor in the current economic climate. As an alternative, a mixed-use solution for the site should


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be tested with, in the first instance, other employment-generating uses, such as hotel, educational

and where appropriate care home facilities.

Decoy Farm, East Worthing Industrial Estate has significant deliverability issues, given the site’s

previous use as a landfill site. West Sussex County Council are set to expand its household

recycling facilities on the site, and without the prospect of the East Worthing Access Road being

constructed in the foreseeable future, the site is more suited to additional ‘bad neighbour’ and open

storage uses that avoids costly building works.

The former Lloyds Building at The Causeway is a late 1960s building with dedicated car parking

spaces. The building has the potential to cater for future office requirements, where the building is

refurbished to a good specification.

Policy Recommendations

In terms of industrial and warehousing uses it is recommended that the Council implements the

following:

• Identify renewal opportunities for under-utilised and vacant premises/sites such as:

- The large unit fronting Southdownview Road at Broadwater Business Park;

- The cluster of vacant units at Dominion Way West within East Worthing Industrial Estate;

- Former Whiteheads Fabric Building within East Worthing Industrial Estate; and

- The large derelict building at Woods Way, Goring Business Park.

• Protect all key industrial estate areas within the Borough, with the exception of Station Road,

which due to its constrained setting is not considered to be a prime industrial area.

• Seek to allocate vacant land to meet the expected shortfall in industrial demand of circa

180,000 square feet up to 2026, focusing on the following key opportunity sites:

- Former sewage treatment works, Martlets Way, Goring Business Park;

- Land at Northbrook College, Durrington Campus; and

- Decoy Farm, East Worthing Industrial Estate.


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In terms of B1 office uses, it is recommended that the Council implements the following:

• Seek to deliver the future office need of circa 240,000 square feet up to 2026 through a

pragmatic approach that:

- Delivers new town centre office floorspace through major mixed-use schemes;

- Maximises the opportunities of vacant office sites in out-of-town locations such as the

former Lloyds TSB Building and The Warren for continued office use; and

- Promotes new B1 office develop at Northbrook College’s Durrington Campus.

• Protect key office locations within, and at the edge of the town centre, including:

- Liverpool Terrace/Liverpool Gardens (and parts of Grafton Road, Portland Road and

Shelley Road);

- Chatsworth Road;

- North Street/High Street (including Little High Street and High Street north);

- Railway Approach;

- Crescent Road (northern end); and

- Farncombe Road.

• Outside of these areas, the presumption should be against the loss of office space, although

a criteria- based policy should be adopted to enable the ‘worst cases’ to be brought back into

beneficial use for alternative uses.

Other recommendations for the Council to progress include:

• Investigate the opportunity for a business incubator with key partners and promote the

concept through the Core Strategy and Economic Development Strategy.

• Work effectively with regional and sub-regional bodies to ensure a co-ordinated approach to

promoting Worthing to prospective inward investors.

• Set up appropriate mechanisms and systems to effectively engage with local landowners,

agents and developers.

• Improve the monitoring of the local economy and enquiries for business premises, including

seeking to update the Industrial Estate Survey at regular intervals, say every 24 months.


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1.0 Introduction

Knight Frank LLP was commissioned by Worthing Borough Council in July 2009 to undertake

economic research into the supply and demand of employment space within Worthing Borough as an

aid to formulating policies within the new Local Development Framework, and devising actions and

tasks within the new Economic Development Strategy.

The report seeks to assess both the existing industrial estate areas within the Borough, plus key

office locations, including the town centre, edge-of-centre office areas, and out-of-town clusters. This

has been achieved through primary research in the form of an update of the 2005 Coastal Industrial

Estate Survey undertaken by Coastal West Sussex Area Investment Framework Partnership, an

evaluation of the office stock through external surveys, and discussions with local agents, economic

development agencies and some landowners and occupiers.

The report provides an update to the 2005 Worthing Employment Land Review produced by Step

Ahead Research Ltd.

The findings of our research are set out in the following order:

• Chapter Two: Economic Audit – sets out an overview of the Worthing economy with

analysis of various economic indicators, as well as qualitative evidence from key economic

development agencies;

• Chapter Three: Planning and Economic Development Policy Review – summarises the

key spatial planning and economic development targets, objectives and policies at the

national, regional and local level;

• Chapter Four: Audit of Existing Employment Stock – describes the current supply of

industrial and office space within the Borough, focusing on the industrial estate areas, and

the key office locations, especially the town centre;

• Chapter Five: Property Market Assessment – evaluates indicators of market demand in

Worthing, such as take-up, availability and prevailing rents for both the office and

industrial/warehousing markets.


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• Chapter Six: Forecasting Employment Demand and Floorspace – presents the longer

term economic demand for employment floorspace within Worthing Borough, based on

employment forecasts to 2026.

• Chapter Seven: Appraisal of Key Sites – assesses key employment sites that are either

undeveloped, vacant or in need of regeneration in terms of their future role within the

Borough from an employment perspective;

• Chapter Eight: Conclusions and Policy Recommendations – presents our opinion on the

balance of supply and demand, including the provision of start-up units, future site

allocations and the policy response to offices and industrial uses; our findings on the

organisation of economic development activities at the local/sub-regional level, and guidance

on the on-going monitoring required to regularly update the report.

Additional information is provided in a series of appendices.


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2.0 Economic Audit

2.1 Background

It is important to understand the nature of the economy in the study area in order to provide suitable

employment opportunities to allow sustainable growth. The following sets out key socio economic

trends and indicators that influence demand for employment space. The profile is a result of analysis

of national / regional statistics and secondary research, drawing together a number of existing

studies and background documents.

Worthing is one of the largest towns in West Sussex and is located within an environmentally

sensitive setting with the sea to the south and South Downs National Park to the north. The

economy is Worthing is dominated by a small number of larger companies that help to support a

range of local businesses. Like the rest of West Sussex, Worthing has a high percentage of small

firms (83.5% of firms employ up to ten employees).

2.2 Communications

Worthing is served by the A27 trunk road passing through the northern edge of the town.

Considerable congestion and delay occurs where the A27 shares a section of route with the

strategically important A24 London-Worthing road, the main route into the town centre and at the two

level crossings in Central Worthing.

The A259 seafront road also runs east-west and carries predominantly local traffic, but also acts as

an overspill route for the A27, which can also cause congestion.

The south coast railway line provides good connections east (Brighton) and west (Chichester and

Portsmouth) and a reasonably good service to London.

The major concerns expressed by the business community relate to congestion on the strategic road

network, specifically the A27, which affects the reliability of local businesses to deliver their goods

and services on time. An added concern expressed by consultees and the business community is


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congestion within the town centre, particularly at peak hours. This impacts on the movement of

people, goods and services and is perceived as having a detrimental effect on the local economy.

Sufficient and affordable parking provision, particularly in the town centre, is also identified as a

particular concern. A high proportion of businesses in Coastal West Sussex (52%)1 say the road

network falls short of business needs.

There is unlikely to be any major investment in the strategic road network in the short / medium term.

The planned East Worthing Access Road (EWAR), which would have improved access from the A27

to the East Worthing industrial area, is now unlikely to go ahead and has not been included within the

Core Strategy.

2.3 Population

Worthing has a total population of 98,700. Between 1993 and 2003, the resident population of the

borough rose by 2%, below both national and regional trends and significantly lower than the 7%

growth seen in West Sussex as a whole.

Table 2.1 sets out projected changes in population growth in Worthing up to 2026.The table reveals

that the Borough is set for a modest increase in population of just 3,000 people between 2006 –

2026.

Table 2.1: Total Population 2001 – 2026 Age 2001 2006 2011 2016 2021 2026

0-4 5,300 5,500 5,200 5,200 5,200 5,300

5-19 16,400 16,800 17,200 16,900 16,600 16,100

20-64 53,300 55,000 57,100 57,600 58,100 58,200

65-79 14,200 13,500 13,300 14,400 14,800 15,600

80+ 8,300 7,900 7,500 6,700 6,500 6,700

TOTAL 97,600 98,700 100,200 100,900 101,200 101,900

Notes: Populations at 2001 and 2006 are mid-year estimates made by ONS Projections to 2016 reflect policies in the approved WS Structure Plan, 2001-2016 Projections for 2021 and 2026 reflect housing policies in the draft S E Plan as submitted to Government, March 2006 1 Voice of Business 2009 Survey, Sussex Enterprise


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Despite experiencing population growth, Worthing remains the third least populated district / borough

in West Sussex.

The percentage of working age population (includes males aged 16-64 and females 16-59) is lower

than both the regional and national average, indicating the elderly profile of the population.

Table 2.2: Working age population (2007) Worthing Worthing % South East % GB % All people – working age

57,500 57.7% 61.3% 62.2%

Males – working age

30,000 63% 65.4% 66.2%

Females – working age

27,500 52.9% 57.4% 58.3%

Source: ONS mid-year population estimates

While the town still has a high proportion of elderly residents, this has been reduced significantly over

the last 30 years. In 1971, over 40% of the population were over retirement age; by 2001, this has

fallen to just over 25%. A fall in over 65s is projected in the next 5 years but there will be an increase

again after this date (the ‘baby boom’ of the 1960s).

2.4 Employment Structure

The table below outlines the employment structure for Worthing Borough. Table 2.3: Employee jobs (2007) Sector Worthing SE Agriculture and fishing 0.0% 0.4%Energy and water 2.3% 0.5%Manufacturing 8.0% 8.8%Construction 2.3% 4.4%Distribution, retail, hotels and restaurants 23.6% 25.8%Transport and communications 3.5% 6.1%Finance & commercial business services 22.2% 23.9%Public administration, education and health 33.8% 24.8%Other services 4.4% 5.3%Total 45,200 Source: ABI


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Further analysis of employment structure indicates that there has been a reduction in manufacturing

employee jobs in Worthing (12.5% in 1995 to 8% in 2007). This mirrors the national long term decline

of the manufacturing sector, although it is important to stress that decline in Worthing has been at a

slower rate than the national average. In addition, firm level data (ABI) shows that the number of

manufacturing firms in the UK fell by 13% between 1998 and 2007, which was a faster rate of decline

than that seen in Worthing (7%). Although declining, manufacturing continues to be an important

sector for the local economy.

The major increase in employee jobs has been in the service sector, which has increased from

32,760 (83.3% in 1995) to 39,200 (88%) in 2007. The main increase has been in public

administration, education and health, supported by Distribution, retail, hotels and restaurants and

Finance & commercial business services.

The table below lists companies in Worthing with over 100+ employees.

Table 2.4: Large Firms of Worthing – 100+ employees (non-retail) Name Business Allergy Therapeutics plc Treatment and prevention of allergy B&W Loudspeakers Ltd Hi-fidelity equip manufacturers Bond International Software Software compilers Electronics Temperature Instruments Digital thermometers Environment Agency Government Agency Equiniti Financial Services Eurotherm Controls Ltd Data recording and process control manufacturers Eurotherm Ltd Design of data acquisition & industrial process GlaxoSmithKline Manufacturer of pharmaceuticals Littlehampton Book Services Book publishers distribution service Marine & General Mutual Life Assurance Life assurance Aviva Insurance company Southern Water plc Water supply Stagecoach South Ltd Public transport operator Ultra Motive Test & lab for automotive industry Worthing Borough Council Local authority Source: WSCC Annual Survey of industrial estates, Feb 2009

In terms of employment by occupation, Worthing has an above average proportion of Professional

occupations and an above average proportion of employment in lower-value employment sectors,

specifically elementary occupations. This demonstrates the diversity of jobs within the Borough.


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Table 2.5: Employment by occupation (Jan 2008 – Dec 2008) Occupational Groups Worthing

(numbers)Worthing

(%) South East

(%) Great Britain

(%) Soc 2000 major group 1-3 21,000 45.5 47.7 43.41 Managers and senior officials 7,400 16.0 17.5 15.72 Professional occupations 8,000 17.4 14.5 13.03 Associate professional & technical 5,600 12.2 15.6 14.5Soc 2000 major group 4-5 8,800 19.1 21.2 22.34 Administrative & secretarial 6,000 12.9 11.2 11.45 Skilled trades occupations # # 10.0 10.8Soc 2000 major group 6-7 7,200 15.5 15.1 15.86 Personal service occupations 4,400 9.5 7.7 8.27 Sales and customer service occs # # 7.4 7.6Soc 2000 major group 8-9 9,200 19.9 15.9 18.58 Process plant & machine operatives # # 5.4 7.19 Elementary occupations 6,200 13.4 10.5 11.4Source: ONS annual population survey

In 2001 less people worked in Worthing than there were workers living in the borough, making it a

net out-commuting area. However, with a relatively large local economy providing employment

opportunities, levels of commuting are not significantly high. The majority of those leaving the

borough to work travelled no further than Brighton and Hove, Adur or Arun, with only 3% of residents

working in Greater London (compared with 6% on average in Sussex).

2.5 Sector review: future prospects

Various research reports are available at both a regional and sub regional level to review future

growth prospects amongst key sectors, particularly reports to support regeneration plans at

Shoreham Harbour. We have reviewed this information to assess future growth prospects for key

sectors in Worthing. Further information on employment demand forecasts is set out in Chapter 6.

The business services sector includes a diverse range of activities and is a significant sector in the

sub region2, accounting for over 34,400 jobs. The three largest business services sub-sectors in the

sub-region are labour recruitment, legal, accounting and auditing activities and consultancy and

computer and related activities. Worthing specialises in software consultancy and supply and

advertising. The sector currently provides around 6,600 jobs in Worthing, but the sector has

2 Adur, Brighton & Hove and Worthing


19

experienced a 4% decline in employment between 1998-2007 (unlike Adur which has experienced

growth rate of 102%).

In the short term, the sector (specifically the financial services sector) is being hit hard by the

recession. However, employment forecasts expect that business services will be one of the key

growth sectors for the sub region, with growth forecast for Worthing.

There are a number of high technology manufacturing companies which make this sector

particularly important for Worthing, specifically pharmaceuticals, aerospace and electronics. In the

sub region, approximately one-third (32%) of manufacturing employment can be considered high-

tech, which is considerably above the national average (12%).

Worthing has by far the largest proportion of high-tech manufacturing (60% of manufacturing

employment), reflecting the presence of a number of firms in the pharmaceuticals sector and in the

manufacturing of medical, precision and optical instruments.

The national picture has seen a significant decline in employment in the manufacturing sector (-30%

fall in employment); Worthing has seen a slower rate of decline (-9%). However, there has been a

significant decline in high-tech manufacturing employment in Worthing.

Forecasts suggest a continued decline in the manufacturing sector as a whole to 2026. It is difficult to

assess the future prospects of the high-tech sector, particularly because of the sectors reliance on

the fate of a few large employers. For example, the on-going restructuring of GSK could have

significant implications for the Worthing plant (which employs over 1,000 people). The plant has a

specialism in manufacturing penicillin based products, which has seen declining demand world-wide.

The creative industries sector is relatively strong in Worthing and has been identified as offering

future growth prospects. The sector employs over 16,000 people in the sub region, of which 3,400

are employed in the sector in Worthing (8% of total employment). Worthing has particular strengths

in architectural and engineering activities and software, computer games and electronic publishing.

There has been significant growth in creative industries in the region, but employment in the sector

has remained static.


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Given the high land prices for commercial property in the BN1 postcode (where the main regionally

creative cluster is located), there may be an opportunity for Worthing to accommodate those

companies who are finding it difficult to locate or expand within Brighton itself.

The retail sector has seen modest growth in Worthing, but the borough has a slightly greater

concentration of employment than the national average (12%).

Forecasts predict growth across the sub region as a whole, with employment growth forecast to be

strongest in Worthing. Indeed, the retail sector has seen growth over the last year, with jobs being

created at the new Morrisons store, located at the old Co-op store in Newland Road.

The tourism sector employs around 18,200 people and accounts for one in ten of all local jobs in the

sub region. In terms of the local position, some economic impact data is available from recent

research undertaken by Tourism South East (TSE) on behalf of WSCC. Key facts include:

• 287,080 staying trips were spent in the Borough;

• 1.72m tourism day trips were made to the Borough (lasting more than 3 hours);

• Total visitor spend is estimated to be in the region of £56,10m in 2007;

• Trip expenditure and additional tourism related expenditure translates to £146,52m worth of

income for local businesses through direct, indirect and induced effect;

• Declining accommodation stock: 1,200 bed spaces – around 50% reduction in hotel bed

spaces over last 10 years;

• Short break coach market (grey £) remains important: however, in decline;

• Declining business / conference market ; and

• Average levels of satisfaction are expressed by visitors in relation to the Worthing’s beach,

seafront, access and location.

The sector, which includes restaurants and bars, employs around 3,200 people, 7% of local

employment. Growth in Worthing is likely to be in line with the national average.


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2.6 Business Structure

Table 2.6 below indicates the number of VAT registered businesses in the borough. VAT registered

businesses are those which has an annual taxable turnover of £67,000, but businesses below this

threshold can also register.

Table 2.6: VAT Registered Businesses by Industry (2007) Sector Worthing W Sussex South East No. % No. % No. % Agriculture; forestry and fishing 25 0.8 1,445 4.9 136,100 6.9Mining and quarrying; Electricity, gas, and water supply

0 0 20 0.1 1,1885 0.1

Manufacturing 220 7.4 2,290 7.8 147,980 7.5Construction 405 13.7 3,745 12.7 233,415 11.9Wholesale, retail and repairs 660 22.3 5,410 18.4 388,235 19.8Hotels and restaurants 240 8.1 1,745 5.9 141,765 7.2Transport, storage and communication 105 3.6 1,145 3.9 83,150 4.2Financial intermediation 35 1.2 375 1.3 21,335 1.1Real estate, renting and business activities

965 32.7 10,220 34.8 634,315 32.3

Public administration 230 7.8 2,470 8.4 144,605 7.4Education; health and social work 60 2 500 1.7 32,130 1.6TOTAL 2,945 99.7 29,365 100 1,964,915 100Source: Nomis

As with West Sussex, the highest percentage of VAT businesses in Worthing is within the real estate,

renting and business activity sector. This is the case for Great Britain and the South East. This sector

includes a wide range of services including estate agencies, letting agents, renting of transport and

equipment, computer related activities, market research, call centres, accountancy services and

business consultancy. Worthing employment growth over the last 15 years has been dominated by

the service sector and the trend is expected to continue.

The proportion of hotels and restaurants in Worthing is higher than for West Sussex and the south

east demonstrating the continuing importance of the tourism sector to the local economy. VAT

registrations and de-registration are the best official guide to the pattern of business start-ups and

closures. They are an indicator of the level of entrepreneurship and of the health of the business

population. Table 2.7 indicates the changes in VAT registered businesses in Worthing between

1994-2007.


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Table 2.7: VAT Registered Businesses 1994-2007 (stocks at end of year) Date Worthing West Sussex South East 1994 2,435 23,355 243,1251995 2,440 23,490 244,9301996 2,485 23,895 249,3051997 2,630 24,785 257,9651998 2,720 25,570 267,2401999 2,840 26,380 274,3052000 2,890 26,935 279,9602001 2,845 27,250 284,3452002 2,780 27,495 288,7152003 2,835 27,875 294,8802004 2,815 28,035 299,9602005 2,840 28,330 305,4052006 2,895 28,765 311,0602007 2,955 29,375 319,860% change 94-07 21.4% 25.8% 31.6%Source: Nomis

The growth of VAT registered businesses in Worthing has been lower over this period than in West

Sussex and in the South East. Indeed, within West Sussex, only 3 districts (Adur, Horsham and Mid

Sussex, have seen growth above both national and regional figures).

The table below indicates enterprise births and deaths, which again demonstrates a lower birth rate

in Worthing compared to the regional and national percentage average.

Table 2.8: Enterprise Births and Deaths (2007)

Worthing South

East England

All Active Enterprises Count Enterprises May-08 3765 369240 2007180Births Count Enterprises May-08 395 44860 266165Births % Enterprises May-08 10.5 12.1 13.3Deaths Count Enterprises May-08 360 35520 203100Deaths % Enterprises May-08 9.6 9.6 10.1

Source: Nomis

2.7 Economic activity and unemployment

The economic activity rate is the proportion of the working age population that is available for

employment – essentially the activity rate is employment and unemployment expressed as a


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proportion of the working age population. The economic activity rate is important for two main

reasons – firstly unemployment in an area can be ‘masked’ by relatively high levels of economically

inactive population, these typically comprise of sick or disabled people, people who are at home

looking after family or students. The second reason to look at economic activity and inactivity is that

economic inactivity is often a greater contributor to differentials in economic output between local

economies than unemployment.

Economic activity rates in Worthing are slightly above the national average but below the regional

average.

Table 2.9: Employment and Unemployment (Jan 2008 – Dec 2008)

Worthing (numbers)

Worthing (%)

South East (%)

Great Britain (%)

All people Economically active 48,300 80.2 82.3 78.8In employment 46,200 76.5 78.5 74.2Employees 39,300 66.2 67.8 64.5Self employed 6,400 10.3 10.4 9.2Unemployed (model-based)§ 2,400 5.0 4.4 5.7Males Economically active 26,600 86.4 86.6 83.2In employment 25,600 83.0 82.7 78.0Employees 21,400 71.6 68.2 64.7Self employed 3,900 11.4 14.2 12.9Unemployed # # 4.4 6.1Females Economically active 21,700 73.5 77.6 74.0In employment 20,600 69.6 74.0 69.9Employees 17,800 60.4 67.3 64.4Self employed # # 6.4 5.1Unemployed # # 4.5 5.3Source: ONS annual population survey

As with the national picture, Worthing continues to experience falls in the employment rate and

number of people in employment. The number of unemployed people, the unemployment rate and

the claimant count have all increased.

Table 2.10 indicates the significant increases in JSA claimants in Worthing since 2001.


24

Table 2.10: JSA Claimants Total Persons Worthing South East England Aug-08 1050 75860 744980 Aug-07 760 66080 676965 Aug-06 870 79250 772275 Aug-05 745 71370 700500 Aug-04 640 66130 643120 Aug-03 680 72270 713055 Aug-02 650 71065 742590 Aug-01 590 64660 753720

Source: Nomis

Increases in unemployment have been greater among those with low skills (elementary occupations)

and in traditional industrial sectors. However, unemployment has also increased among managerial

occupations, particularly in the financial and business services sector.

2.8 Qualifications and skills

The table below sets out the level of qualifications achieved in Worthing alongside the south east and

GB.

Table 2.11: Qualifications and skills

Worthing (numbers)

Worthing (%)

South East(%)

Great Britain (%)

NVQ4 and above 16,600 29.4 31.5 29.0 NVQ3 and above 28,300 50.1 50.8 47.0 NVQ2 and above 38,100 67.6 68.9 65.2 NVQ1 and above 47,700 84.7 83.4 78.9 Other qualifications 3,900 7.0 7.7 8.7 No qualifications 4,700 8.3 8.9 12.4 Source: ONS annual population survey

The table indicates that Worthing has a lower percentage of people with NVQ4 qualifications

compared to the regional position, but also a smaller percentage of people with no qualifications.

This demonstrates a modest level of educational attainment.


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2.9 Productivity (GVA) and earnings

The economy is measured by its share of the GVA and share of national employment. In West

Sussex, Crawley has the largest economy with Adur having the smallest. (Adur GVA 0.07, Worthing

0.18. Share of total national employment Adur 0.07, Worthing 0.17).

The following table shows earnings by residents in Worthing, which indicates significant less gross

weekly pay for fulltime workers residents of Worthing compared to the regional average, reflecting a

modest economic performance.

Table 2.12: Earnings by residence (2008)

Worthing (pounds)

South East (pounds)

Great Britain (pounds)

Gross weekly pay Full-time workers 486.4 523.2 479.3Male full-time workers 513.6 584.4 525.0Female full-time workers 444.6 437.4 412.7Hourly pay Full-time workers 12.66 13.26 12.01Male full-time workers 12.72 14.37 12.72Female full-time workers 11.85 11.61 10.96Source: ONS annual survey of hours and earnings - resident analysis

2.10 Deprivation

Worthing is the 172nd (2007) most deprived Local Authority level in England (ranking out of 353

areas), and is the second most deprived area of West Sussex. At a local neighbourhood area, 7.7%

of local SOA’s in Worthing fall into the 10-20% most deprived in England. Heene, Broadwater,

Cenbral and Northbrook are within the 20% most deprived neighbourhoods in England.

Worthing has some contrasting areas, some with a high proportion of older, affluent people and other

areas are amongst the most deprived in West Sussex. Patterns of relative deprivation are reflected

particularly in housing, health and social care.


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2.11 Local consultation: qualitative review

Establishing the views of key stakeholders involved in the economic development arena has been an

important strand of activity to provide a qualitative assessment on the current and projected nature of

business activity in the town. Appendix 1 sets out the list of consultees together with the

questionnaire used to illicit views.

The findings of the consultation exercise were generally consistent across the range of key

stakeholders.

2.11.1 The Business Community

Part of the process in preparing the Economic Development Strategy for Worthing included a survey

of the local community. In total 300 businesses responded to the survey. In addition, we have

reviewed responses from the Voice of Business (2009) undertaken by Sussex Enterprise, that had a

business response rate of 671 businesses, of which 158 are located in Coastal West Sussex.

Interestingly, within the Council’s survey, 79% of respondents rated Worthing as average or above

average business location, which is a positive response from the business community as a location

for business.

In terms of other relevant responses:

• 32% of businesses rated reducing crime and anti-social behaviour as their top priority.

Clearly, crime and anti-social behaviour has a detrimental impact on the economy of

Worthing and can significantly increase business operational costs, deter inward

investment and adversely effect business retention.

• 69% of respondents rated the quality of commercial premises in Worthing as average or

below average. The town has a proportion of out-of-date employment floorspace, which

requires redevelopment to support changing market needs and population increase. In

addition, 70% of respondents rated availability of commercial premises in Worthing as

average or below average.


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Within the Sussex Enterprise survey, 25% of businesses located in Coastal West Sussex

indicated that inadequate premises and a lack of new premises has been a major

constraint on business growth over the last 12 months.

• 21% of respondents rated improving transport and infrastructure as their top priority.

Parking has also been identified as a major concern, with 40% of the comments received

from the business community relating to parking, specifically the issue of affordability.

• Again, 56% of businesses along the coastal strip identified the issue of local traffic

congestion as having a negative impact on their business. 89% of business believe that

better transport links east-west along the coast are vital for the future health of the local

economy.

• Of particular concern, 14% of businesses are considering locating outside Sussex unless

the transport infrastructure improves soon.

2.11.2 Inward investment There is a lack of information regarding inward investment projects and enquiries, including

information about growth and expansion of local firms. Some information is available from WSCC

about job losses / jobs created, which is collected from various sources, mostly local press.

At a regional level, information provided by SEEDA and UKTI about trade and investment figures

indicates:

• 17% increase in the number of companies relocating in the region;

• 90 investors, within the target industries, locating in the south east, creating or safeguarding

3,846 jobs over the next three years.

An analysis of SEEDA assisted inward investment trends in West Sussex between 2004-2009,

indicate that there have been 19 successful projects, creating 496 jobs and safeguarding 314 jobs. 5

of these projects were in Worthing, creating 76 jobs and safeguarding 184 jobs. Worthing has, with

Crawley, been the highest recipient of successful projects in West Sussex.


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Attracting inward investment projects to an area depends on being able to offer locations where all

the critical ingredients are in place (particularly location, communications, labour supply, sites and

premises, environment, suppliers, access to grants etc.).

Whilst the Worthing area would score well in many of these areas, the business community has

concerns about the availability of suitable sites and premises, access and communications problems.

The area is likely to be more competitive for smaller projects.

Discussions with local economic development agencies indicated a general consensus as to the

sectors that are likely to drive forward the local economy over the next 5 – 10 years:

• Tourism & leisure;

• Manufacturing, specifically high-tech, and

• Health and social care.

Each of the sectors is already important and offer potential for future growth. In addition, finance and

business services (although currently under intense pressure during the recession), education and

retail were also identified as offering future growth prospects.

A number of agencies highlighted the importance of the Community and Voluntary sector in

Worthing. Within the town, there are ‘almost 900 voluntary, charity and community organisations,

over 50% of which are designated as SMEs.’3

Many organisations identified the general environment, particularly the South Downs, as being a

particular assets contributing to Worthing being seen as a good place to live and work. However, all

agencies highlighted the poor quality of the property offer as an issue that deters businesses setting

up or growing in Worthing.

Business Link Sussex (BLS) is the business support organisation responsible for providing

information, advice and support for new businesses or for existing businesses that want to grow. All

business enquires received by local authorities will be forwarded to BLS for action except those

relating to specific local authority services and, in some instance, property enquiries.

3 Worthing Council for Voluntary Services


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Clearly, there are a range of organisations, notably banks and accountants, which provide business

advice. BLS categorises its support as:

• Non-intensive assistance (information provision), and

• Intensive assistance (diagnostic and brokerage services).

In total, 1,846 businesses received non-intensive information (Q1 2009/10), of which 425 were pre-

starts and 74 were start ups. These figures are comparable to other authorities in Sussex, slightly

more than Adur (7%) but slightly less than Arun (15%).

In terms of intensive assistance, 189 businesses have been supported (Q1 2009/10) of which 14 are

start ups. The majority of business supported are real estate, renting and business activity (40%

compared 36% for West Sussex), wholesale and retail trade (19%) and manufacturing (9%).

Discussions with BLS confirm that the most significant source of demand has been from smaller

SMEs. The majority of enquires over the last 12 months relate to support measures to address

problems caused by the current recession, specifically cash flow, finance and other grant support.

2.12 Issues and Implications

• The economy of Worthing is diverse with a strong manufacturing base with key employers

such as GlaxoSmithKline, Eurotherm, and B&W Loudspeakers, as well as a significant

service sector, led by large public sector employers such as Inland Revenue, West Sussex

County Council, Worthing Borough Council and the Environment Agency, and financial firms

such as Equiniti.

• Despite major concerns expressed by the business community about the transport network,

there is unlikely to be any major investment in the strategic road network in the short /

medium term. This may impact on inward investment and future growth prospects of existing

businesses.

• Population change has a direct effect upon the workforce available to businesses in

Worthing. Population forecasts suggest that Worthing will experience a slight increase in

population of 3,000 people between 2006-2026. The growing resident population and rising


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prices have contributed to increasing competition in the borough for land between different

uses.

• In addition, while the town still has a high proportion of elderly residents, this has been

reduced over the last 30 years by some 15%.

• The major increase in jobs has been in the service sector, which has increased from 32,760

(83.3%) in 1995 to 39,200 (88%) in 2007; the main increase has been in public

administration, education and health. The continuing growth of service sector employment is

likely to increase demand for office space, specifically modern office accommodation in more

accessible locations with good parking.

• Employment forecast suggest that services are projected to be a key foundation for

economic growth, with prospects of growth appearing to be strong after the recession.

Growth of business services will require the provision of high quality office space.

• Worthing has above average employment in lower-value employment sectors, specifically

elementary occupations. Attracting inward investment projects will be important to provide

higher-value employment opportunities.

• The rate of business formation in Worthing over the period 1994-2007 (i.e. growth of VAT

registered businesses) at 21% has been lower than in West Sussex, at 26%, and in the

South East and 32%.

• The rate of business formation (i.e. growth of VAT registered businesses) has been lower

than in West Sussex and in the South East.

• As with the rest of the country, Worthing is experiencing a significant increase in

unemployment, specifically among those with low skills (elementary occupations) and in

traditional industrial sectors.

• As with the rest of the Sussex coast, Worthing has some significant pockets of economic and

social deprivation.


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3.0 Planning and Economic Development Policy Review

This section of the report presents a brief overview of the key planning and economic development

policies that influence the development of employment uses within Worthing Borough. The review

focuses on national, regional and local policy documents and the implications for employment

planning within the Borough.

3.1 National Policies

3.1.1 DCLG – Consultation Paper on New Planning Policy Statement 4: Planning for Prosperous Economies (2009)

The Government’s consultation paper on the new PPS4, incorporates updated policies from the

existing PPG4: Industrial and Commercial Development and Small Firms; PPG5: Simplified Planning

Zones, PPS6: Planning for Town Centres, and PPS7: Sustainable Development in Rural Areas.

This ‘all encompassing’ document is designed to bring together the Government’s key planning

policies relating to the economy in one place. The uses to which the policies with the draft PPS

apply include the ‘B Use Classes’, town centre uses (retail, licensed leisure, offices, arts, culture and

tourism) and other development that provides employment opportunities, generates wealth or

produces or generates an economic output or product (excluding house building).

Once adopted the PPS will need to be taken into account in formulating policies within the Worthing

Borough Local Development Framework.

Draft Policy EC4.1 sets out a series of policy objectives for local authorities to consider in their

approach to economic development. These are summarised as follows:

1. positively and proactively encourage sustainable economic growth;

2. make full and effective use of the planning tools available (e.g. simplified planning zones);

3. Prioritise previously developed land which is suitable for re-use setting out criteria based policies;


32

4. Support existing business sectors, and make provision for the location, expansion and promotion

of clusters of knowledge driven industry;

5. Plan positively for the benefits that can accrue when certain types of businesses locate within

proximity of each other or with other compatible uses such as Universities and hospitals;

6. Facilitate new working practices such as live/work or the use of residential properties for home

working;

7. Ensure that site allocations for economic development are not carried forward from one version of

the development plan to the next without evidence of the need and reasonable prospect of their take

up during the plan period;

8. Encourage new uses for vacant or derelict buildings, including historic building; and

9. Seek to make the most efficient and effective use of land and buildings, especially vacant or

derelict buildings (including historic buildings).

From these planning objectives, draft Policy EC4.2 states that Local Development Frameworks

should contain policies which:

1. “Plan for new or emerging sectors likely to locate in the local area or which the local planning

authority wish to attract to the area, but maintain flexibility in their policies on the supply and use of

land to accommodate sectors not anticipated in the plan and allow a quick response to changes in

economic circumstances.”

2. “Make provision for a broad range of business types such as small start-up businesses, through to

small and medium sized enterprises as well as larger commercial or industrial premises.”

3. “Set our evidence based policies for the delivery of the sustainable transport and other

infrastructure needed to support their planned economic development, and, where necessary,

provide advice on phasing and programming.”

4. “Identify, protect and promote key distribution networks, and relocate or co-locate developments

which generate substantial freight movements in such a way as to minimise carbon emissions. Such


33

networks and development should be in sustainably sited locations, so as to avoid congestion and to

preserve local amenity interests as far as possible whilst ensuring accessibility.”

As offices are deemed to be a key town centre use, it is important to consider the advice within the

draft PPS4 on the approach for planning for town centres. The key policy that is relevant to the

spatial planning of new offices is the ‘sequential approach to site selection’, which is one of the

existing core tests under PPS6. The ‘town centre first’ approach aims to focus development and

investment within existing centres, before allowing edge-of-centre or out-of-centre development. The

advice is draft PPS4 is as follows:

“In applying the sequential approach to site selection local planning authorities should:

1. Indentify sites in the following order:

a) first, locations in appropriate existing centres where suitable sites or buildings for conversion are,

or are likely to become, available within the plan period;

b) edge-of-centre locations, with preference given to sites that are or will be well-connected to the

centre and then

c) Out-of-centre sites, with preference given to sites which are or will be well served by a choice of

means of transport and which are close to the centre and have a high likelihood of forming links with

the centre.

2. Give preference to those sites that best serve the needs of deprived areas when considered

against alternative sites with similar location characteristics.

3. Identify an appropriate range of sites to accommodate the identified need, ensuring that sites are

capable of accommodating a range of business models in terms of scale, format, car parking

provision and scope for disaggregation.

4. Where appropriate, include policies and proposals in development plan documents for the phasing

and release of development sites over the development plan document period to ensure that those

sites in preferred locations within centres are developed ahead of less central locations.”


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In addition, the draft PPS4 suggests that offices should be encouraged above ground floor retail,

leisure and other facilities within town centres.

There appears to be a real challenge in applying the sequential approach to offices within the context

of the existing use classes order, where offices is part of the B1 use class, together with R&D and

light industrial.

3.1.2 DCLG – Planning Policy Guidance Note 4: Industrial and Commercial Development and Small Firms (1992)

PPG4 sets out the Government’s existing approach to industrial and commercial development within

Development Plan documents, although this will be superseded by the new PPS4, once it is adopted.

The PPG states that planning authorities should ensure that their “development plans contain clear

land-use policies for different types of industrial and commercial development and positive policies to

provide for the needs of small businesses.” In addition, “policies should provide for choice, flexibility

and competition” with planning authorities “realistic in their assessment of the needs of business”.

The guidance note also recognises the importance of the locational demands of businesses, such as

links to raw materials and supply chains, access to consumer and labour markets and transport and

infrastructure requirements, and states that “development plan policies must take account of these

needs and at the same time seek to achieve wider objectives in the public interest”.

The principles of sustainable development also underpin the PPG with the re-use of brownfield land,

encouraging more energy efficient modes of transport and supporting mixed-use development.

3.2 Regional and Sub-Regional Policies

3.2.1 GOSE – Adopted South East Plan (2009) The South East Plan was adopted by the Government Office for the South East in May 2009. The

Plan provides the Regional Spatial Strategy for the period 2006-2026, which forms a core part of the

‘Development Plan’ for Worthing Borough together with the Local Development Framework.


35

The key employment policies within the South East Plan are contained within Chapter 6: Sustainable

Economic Development and Chapter 17: Sussex Coast.

The South East Plan incorporates the key objectives of the Regional Economic Strategy 2006-2016,

focusing on sectoral development, business competitiveness and ‘smart growth’.

The key general spatial planning policies that local authorities should consider as part of the

formulation of their LDFs, include:

Policy RE2: Supporting National and Regionally Important Sectors and Clusters

Local authorities, through regular employment land reviews, combined with local knowledge and

working with other partners, will identify the key sectors and clusters within their local area, and any

opportunities that exist for the development or expansion of sectors and clusters. Where

appropriate, local development documents will include policies that:

i. ensure that land and premises are available to meet the specific requirements of nationally and

regionally important sectors and clusters;

ii enhance, develop and promote local assets that can facilitate the development of sectors and

clusters;

iii promote and support non-land use initiatives that benefit and foster the growth and development of

new and existing nationally and regionally important sectors and clusters.

Policy RE3: Employment and Land Provision

In preparing local development documents (LDDs), local authorities will have regard to strategic and

local business needs and the relevant sub-regional strategy [i.e. Sussex Coast]. In planning for the

location, quantity and nature of employment land and premises, they will facilitate a flexible supply of

land to meet the varying needs of the economic sectors.

Strategic employment land should be focused at locations identified in the sub-regional strategy, or

more generally at the regional hubs or gateways, and allocated or safeguarded in the relevant LDD.


36

Based on the evidence from employment land reviews and other market intelligence, provision

should be made in each relevant LDD for a range of sites and premises to meet more general needs

in locations that:

i. are or will be accessible to the existing and proposed labour supply;

ii. make efficient use of existing and underused sites and premises, through increasing the intensity

of use on accessible sites;

iii. focus on urban areas; and

iv. promote the use of public transport.

Accessible and well-located industrial and commercial sites should be retained where there is a good

prospect of employment use.

In planning employment land, the South East Plan includes job forecasts for sub-regional areas. For

Sussex Coast, in which Worthing is located, the RSS indicates that the interim job numbers between

2006-2016 is 30,000.

Policy RE5: Smart Growth

Working with environmental partners, the achievement of smart economic growth will be encouraged

throughout the region, namely to increase the region’s prosperity while reducing its ecological

footprint. Local authorities will seek to enable businesses to work as efficiently as possible, through

considering their needs for land and premises, movement, housing and ICT as reflected in other

policies of this Plan.

Through local development documents and local transport plans, local authorities will support and

promote advances in information and communications technologies (ICT) and new ways of working

by positively promoting the development of ICT-enabled sites, premises and facilities suitable to

support changing and flexible working practices and home based businesses.

Policy RE6: Competitiveness and Addressing Structural Economic Weakness

Through joint working. National, regional and local partners will actively seek to maintain and

enhance the competitiveness of the most economically successful parts of the region and also


37

address structural economic weakness to release the economic potential of those areas which are

under performing.

In the coastal belt, defined as the sub-regions of Kent Thames Gateway, East Kent and Ashford,

Sussex Coast, South Hampshire and the Isle of Wight:

i. local development documents will:

• give priority to delivering economic development in allocating land;

• protect sites for industrial and commercial use where there is a good prospect of

employment use;

• consider whether any upgrading or improvement of existing sites is required.

In addition, as part of the Sussex Coast sub-regional strategy, the following employment-related

policies should be considered in formulating development plan documents:

Policy SCT3: Management of Existing Employment Sites and Premises

To deliver sufficient appropriate sites and premises for business and other uses that will help to

facilitate the regeneration of the local economy, local authorities should, in addition to Policy RE3:

i. develop and co-ordinate with other agencies delivery mechanisms to unlock and implement

existing allocated business parks, other important sites that have persistently remained undeveloped

and other strategic sites with economic potential. This includes:

• large-scale, mixed-use development sites at Worthing and north of Bognor Regis

• Shoreham Harbour, Airport and Cement Works

• Newhaven Eastside and Port

• Eastbourne Park and Sovereign Harbour

• Polegate

• Mixed-use development sites at North East Bexhill.

ii. In other areas be prepared to identify and bring forward mixed use sites on existing or allocated

employment sites in circumstances where this would deliver necessary employment space at the

right time on sites which would be unviable for an employment only scheme.


38

iii. seek to improve and upgrade existing industrial estates and business areas to bring them up to

modern standards required by business.

iii. in rural areas, protect existing and allocated employment land from other uses where employment

land reviews show them to be essential for the needs of small businesses.

Policy SCT4: Employment Priority in New Land Allocations

In conjunction with the priorities set out in Policies RE3 and C3, in allocating land for development,

Local Planning Authorities should give priority to delivering employment development in strategically

accessible locations, particularly by rail, to ensure an appropriate mix of readily available sites and

premises whilst also providing sufficient space to:

• retain existing firms and enable their expansion or relocation (within the sub-region)

• create attractive opportunities for inward investment and new uses

• at least match anticipated increases in the resident workforce

3.2.2 SEEDA – The Regional Economic Strategy 2006-2016 The key principles from the Regional Economic Strategy (RES) is incorporated in the South East

Plan. The RES seeks to achieve an average annual increase in GVA per capita of at least 3%;

increase productivity per worker by an average of 2.4% annually; and reduce the rate of increase in

the region’s ecological footprint (from 6.3 global hectares per capita in 2003, increasing by 1.1% per

capita per annum) through the principles of ‘global competitiveness’, ‘smart growth’ and ‘sustainable

prosperity’.

Encouraging knowledge transfer, R&D, and innovation and creativity is a major part of the strategy,

together with investment in infrastructure and physical employment site development.

The RES identifies six key sectors with the greatest capacity to deliver growth of new products and

services, which are:

• Digital media;

• Marine technologies;

• Health technologies;


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• Environmental technologies and services;

• Built environment; and

• Aerospace and defence.

Worthing has potential within the digital media, health technologies (pharmaceuticals) and aerospace

industries.

3.2.3 Coastal West Sussex Area Investment Framework Partnership: Coastal West Sussex Area Investment Framework (December 2003)

This AIF report produced by SEER Consulting and University of Brighton identifies spending and

investment gaps and opportunities across the key urban areas of the West Sussex Coast.

The AIF highlights the need for additional investment in transport infrastructure, including congestion

associated with the A27 and poor public transport links, as well as deficiencies in the range and

quality of business property and industrial estates and premises.

In terms of Worthing Borough, several physical development and regeneration opportunities were

identified, including:

• East Worthing Access Road – to divert business traffic from residential areas;

• Council Land North of Littlehampton Road – to divert business traffic and make land

available for business development (now developed as Yeoman Gate);

• Teville Gate Re-development – of a site in the heart of the town centre next to the railway

station for commercial use; and

• Bowling Competition Arena – International Competition Arena.

3.2.4 West Sussex County Council: The West Sussex Transport Plan 2006-2016 (January 2007)

The West Sussex Transport Plan sets out the vision for the County up to 2016 focusing on four main

objectives:

• Reduce congestion and pollution;


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• Improve accessibility for our residents to key services;

• Improve road and personal safety; and

• Improve overall quality of life in West Sussex.

The major schemes that the County Council is seeking an acceptable and affordable solution for

include improvements to the A27, especially the section between Lancing and Worthing, which has

significant congestion, pollution and severance issues.

3.3 Local Policies

The Local Development Framework for Worthing Borough is currently being prepared. The Council

has recently published its Revised Core Strategy for consultation in June 2009. In the absence of a

formally adopted Core Strategy, the ‘saved policies ‘ within the Adopted Worthing Local Plan

continue to be the key document for development control purposes.

3.3.1 Worthing Borough Council: Worthing Local Plan – Saved Policies

The Worthing Local Plan was adopted in September 2003, and following the Planning and

Compulsory Purchase Act 2004, a set of ‘saved policies’ were adopted in September 2007 to fill the

policy vacuum whilst the new Local Development Framework is prepared and adopted.

In terms of employment uses, none of the policies have been ‘saved’. Therefore, at present the

South East Plan is the key statutory reference for employment policies, together with the emerging

Core Strategy.

3.3.2 Worthing Borough Council: Revised Core Strategy Consultation Document (June 2009)

The Revised Core Strategy document produced for public consultation in June 2009 follows the

withdrawal of the original Core Strategy version in July 2008, due to the need to address new

changes in national planning guidance.


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The draft employment policies are designed to encourage sustainable economic growth in Worthing

with the town centre and existing employment areas playing a key role in supporting and driving

economic development.

Policy 2 and Policy 3 sets out the Council’s emerging strategy for sustainable economic growth, as

follows:

Policy 2: Providing for a Diverse and Sustainable Economy

Ensuring sustainable economic growth by ensuring that the right conditions are created. This will be

done by:

• Identifying sufficient sites to provide for a range of employment space to meet the needs of

current and future business

• Safeguarding existing employment areas and promoting them as areas for reinvestment,

intensification and redevelopment to bring about upgraded and additional floor space

• Making more efficient use of existing and underused accessible sites

• Supporting the development of tourism, leisure and creative industries with particular

emphasis on the town centre and seafront locations

• Improving the skills and educational achievement of the town’s residents by working with the

agencies responsible for their delivery.

Part of the Council’s strategy at the moment is designed to safeguard existing employment areas.

This policy stance needs to be thoroughly investigated on a site-by-site basis through this report.

Policy 3: Protecting Employment Opportunities

Changes of use or redevelopment of land and buildings currently or last in use for employment

purposes will only be permitted where it has been justified through a criteria based approach

contained within the SPD for Sustainable Economy. Where it is demonstrated that it is not viable to

maintain the existing use then alternative employment uses will need to be considered before

allowing a non-employment use.


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This policy, acknowledges that in some instances there may be a case for releasing employment

sites, due to market and viability issues. Again, we will assist the Council through this report to

formulate a suitable set of criteria to assess proposals for change of use.

In terms of site specific policies, the Council identifies four key employment areas that require a

bespoke policy approach. These sites are:

• The Warren, Hill Barn Lane (Area of Change 8);

• Land Adjacent to Martlets Way (Area of Change 9);

• Northbrook College, Durrington Campus (Area of Change 11); and

• Decoy Farm (Area of Change 12).

The key development principles for each site within the Revised Core Strategy at present are

summarised below:

Site Key Development Principles

The Warren, Hill Barn Lane

• Retention of the site for employment use

• Protection of the existing mature landscaping

• High design standards for any redevelopment scheme

• Promotion of green travel plan to address the current transport problems

and improve the sustainability of the site.

Land Adjacent to Martlets Way

• Retention of the part of the site for employment use and more specifically

B1 with some supporting B8

• Addressing the issue of access in order to facilitate development. Access

to the employment should be from Woods Way or Martlets Way with

access to residential from Barrington Road

• Potential contamination issues will require further investigation and

appropriate mitigation measures

• Promotion of green travel plan to improve the accessibility and

sustainability of the site.

Northbrook College, Durrington Campus

• A mix of high quality residential and employment generating uses

supported by any necessary community infrastructure

• Development will require sensitive and innovative design, maximising

both its gateway location and proximity to the surrounding countryside.


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Decoy Farm

• Developing opportunities on the site for mixed employment use to include

smaller, medium and large scale B1, B2 and B8 industrial units

• Site access issues must be suitably addressed

• Development should provide opportunities to develop new recreational

uses that would take advantage of the area’s open space.

These sites will be reviewed with recommendations made on the development principles for each.

3.3.3 Worthing Together (Local Strategic Partnership): The Interim Worthing Sustainable Community Strategy 2008-2009

Under the new changes to the planning systems, the Core Strategy now needs to be aligned with the

community aspirations as set out within the local ‘Sustainable Community Strategy’ (SCS) produced

by the Local Strategic Partnership. Worthing Borough Council are in the process of formulating a

joint SCS with Adur District Council, and in the meantime have produced an interim SCS to cover the

2008-2009 period.

One of the six key ‘Goals’ to improve the town, includes ‘Goal 3 – A Prosperous Town’, which

includes the key employment outcomes of:

• The right skills for local needs:

• Strong business community, with dynamic job and business creation; and

• Economically viable and attractive town centre.

3.3.4 Worthing Evolution: Worthing Town Centre and Seafront Masterplan (October 2006)

The Masterplan produced by EDAW on behalf of Worthing Evolution sets out the vision for

regenerating Worthing town centre and the seafront area.

One of the ten objectives to achieve the overall vision includes identifying “new business

opportunities” focusing on the “need for a defined business zone between the retail core and station

to promote business development in the town centre and provide a range of accommodation and

potential for business expansion”.


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The masterplan seeks to promote the retention of the office quarter around Liverpool Road/Liverpool

Gardens/Chapel Street, with the principal area of commercial office expansion identified as the

Station Gateway site, around Teville Gate.

The principles of retaining existing town centre offices and promoting the expansion of new offices

will be consider in this report.


• The emerging national planning policy guidance on employment uses seeks to promote

sustainable economic development through the promotion of existing and new sectors of the

economy, and the regeneration of derelict land and buildings that are well served by public

transport. This is a particular challenge in Worthing, as the Borough has major congestion

issues, that makes certain out-of-town areas more accessible by car than public transport

and therefore attractive to the developer and occupational markets.

• There is also a greater emphasis placed on local planning authorities, not to carry forward

historic employment allocations, where the prospect for development is unlikely. Therefore,

within this report, site allocations that have not been developed from the previous Local Plan

will require testing.

• In addition at the national level, the reaffirming of the ‘sequential approach’ to site selection

for B1 office uses within the draft PPS4 is another challenge that needs to be thoroughly

considered when spatially planning office uses. Whilst, office uses help to bring activity and

expenditure to a town centre, the respective values compared to retail and residential uses,

coupled with the complexities and significant costs associated with developing in town

centres, often make new office developments unviable in town centres. A more pragmatic

approach may therefore be needed to ensure that local planning policies do not stymie the

development of new offices in future years.

• At the regional level, the Adopted South East Plan seeks to promote the development of key

sectors (which are identified in the Regional Economic Strategy), by ensuring a flexible

approach to planning for land and buildings that promote the elements of ‘Smart Growth’

through the use of ICT, whilst helping to drive economic competitiveness. How we work is


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constantly changing and evolving, as the use and power of ICT allows companies and

individuals a greater freedom to work footloose, and in some cases without a permanent

work base. The challenge for Worthing is to ensure that there is a range of workspace

choices for different types and sizes of businesses within the Borough, some with support

services and the latest ICT advances to ensure that businesses can grow and stay in

Worthing.

• As a linked point, the supply of employment stock also has to evolve and change as working

practices and sectors of the economy change, and in this regard, there will be certain

elements of the existing Worthing employment stock that are not ‘fit for purpose’, requiring

regeneration. The South East Plan promotes the renewal and upgrading of existing

employment stock, although along the Sussex Coast, including Worthing the values in some

cases will not merit a comprehensive refurbishment or redevelopment, and therefore the

challenge will be to unlock these sites.

• At the local level, the Revised Core Strategy sets out a series of policies protecting the loss

of employment uses and identifies a number of key sites that require a bespoke employment

policy to protect and promote employment uses. This report needs to consider whether this

policy approach is appropriate.


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4.0 Audit of Existing Employment Stock

This section of the report presents an audit of the current employment stock in the Borough, focusing

on the key industrial estates, and offices within and at the edge of Worthing town centre. Stand-

alone employment uses outside of these areas are captured within the analysis of the overall stock

figures for the Borough.

The audit of the employment stock involved Knight Frank updating and adding to the 2005 Coastal

Industrial Estate Survey undertaken by Coastal West Sussex Area Investment Framework

Partnership, as well as carrying out a new survey of the quality of the office stock in and around

Worthing town centre. These surveys took place in July 2009.

Please note that Knight Frank has relied upon individual floorspace entries for each unit from the

2005 industrial estate survey, and has only updated the sizes of units for the town centre and edge of

centre office survey from the VOA 2005 Ratings List.

4.1 Total Stock Position

Information on total floorspace stock is derived from the administrative databases used by the

Valuation Office Agency (VOA) for assessing non-domestic property in England and Wales. Figure

4.1 shows how the supply of employment floorspace in Worthing has evolved between uses over the

last 10 years and Table 4.1 places the Borough in the context of West Sussex and the wider South

East region.

As at 2008, there was an estimated 1.89m square feet (net internal area) of office space in

Worthing, accounting for some 38% of total employment floorspace in the Borough. Such a share is

relatively high when compared with the wider region, reflecting the relative prominence of service

sector employment over industrial related activities in Worthing.


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-

0.50

1.00

1.50

2.00

2.50

3.00

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Floo

rspa

ce (m

sq

ft)

Offices Factories Warehouses

Figure 4.1: Overall Employment Stock in Worthing Borough

Source: VOA

Table 4.1: Changes in Employment Floorspace in Worthing Borough

Worthing West

Sussex South East England Offices change 1998 - 2008 21.4% 18.5% 19.6% 23.5% change 2003 - 2008 -2.8% 3.3% 1.0% 1.7%

2008 Share of total employment floorspace 38.3% 27.6% 28.6% 22.1%

Factories change 1998 - 2008 -30.7% -4.6% -6.2% -9.1% change 2003 - 2008 -29.0% -7.6% -11.6% -9.4%


Warehousing change 1998 - 2008 83.1% 34.9% 20.5% 22.1% change 2003 - 2008 14.9% 12.3% 2.7% 6.9%


Source: VOA via ONS


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Over the last 10 years, the supply of office space in Worthing has increased by 21.4%, an increase

which is broadly in line with the growth witnessed in West Sussex, South East and England. More

intriguing is the fact that, over the last five years, according to the VOA data at least, office floorspace

has actually reduced. Between 2003 and 2008, total office floorspace in Worthing reduced by -2.8%,

whereas the wider comparative regions of West Sussex, the South East and England have all

witnessed an increase in office supply.

The amount of factory floorspace in Worthing also stands at 1.89m square feet (gross internal area)

as at 2008, accounting for 38% of total employment floorspace and identical to the quantity of office

space in the Borough. The share of factory floorspace is also broadly in line with the share apparent

across West Sussex and the South East. However, whereas the amount of office space has

generally been on an upward trend, predictably, factory floorspace has declined significantly in the

Borough.

Over the last 10 years, factory floorspace has reduced by -30.7% and, given the economic

restructuring of the UK economy towards services over the last 30 years, a reduction is hardly

surprising. However, when placed into context with the wider region, the extent of this reduction is

notable; in West Sussex as a whole the decline was only -4.6%. Furthermore, it would appear that

this reduction happened suddenly and relatively recently, with the amount of factory floorspace

reducing by -21% between 2005 and 2006 alone.

As at 2008, there was an estimated 1.16m square feet (gross internal area) of warehouse floorspace

in Worthing, accounting for 23.5% of total employment floorspace in the Borough. To provide context,

this share is some way below that apparent in West Sussex and the South East region, where

warehousing accounts approximately for a third of the total employment floorspace.

Over the last 10 years, the supply of warehouse floorspace in the Borough has increased by a

significant 83%, a large proportion of which occurred between 1998 and 1999, which may be due to

the development of the Absolute Self Storage warehouse units at East Worthing Industrial Estate.

For additional context, West Sussex and the South East have also seen strong growth in warehouse

floorspace, reflecting the growth of the distribution sector in the UK economy, albeit much less

pronounced compared with Worthing over the period.


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4.2 Industrial Estates and Business Parks

4.2.1 Overall Analysis of the Estates

The Borough contains ten key industrial estates or business parks providing 70% of the total amount

of employment floorspace in Worthing.

The key locations are:

- Broadwater Business Park;

- Canterbury Road (including Garcia Trading Estate);

- Downlands Business Park;

- East Worthing Industrial Estate;

- Faraday Close;

- Goring Business Park;

- Ivy Arch Road;

- Meadow Road;

- Station Road; and

- Yeoman Way.

These ten employment areas provide a total of 3.4m square feet of industrial, warehousing and office

floorspace with 364 units on 181.5 acres of land, as set out in Table 4.1.

The largest employment areas are located at East Worthing Industrial Estate and Broadwater

Business Park on the eastern side of the Borough. These two estates account for over half of the

total employment floorspace, units, and land area within the ten employment areas.


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Table 4.1: Size of Key Employment Areas

Employment Area Land Area

(Acres) Land

(Hectares) Number of

Units Total Floorspace

(sq.ft.) Broadwater Business Park 51 21 62 875,415Canterbury Road 4 2 16 104,726Downlands Business Park 9 4 13 200,071East Worthing Industrial Estate 47 19 105 936,939Faraday Close 19 8 10 392,624Goring Business Park 13 5 53 253,375Ivy Arch Road 7 3 26 163,502Meadow Road 19 8 41 287,180Station Road 1 0.4 22 25,825Yeoman Way 11.5 5 16 143,366Total 181.5 73 364 3,383,023

Source: Knight Frank Survey 2009/Coastal Industrial Estate Survey 2005

In terms of vacancy levels, Table 4.2 shows that the proportion of vacant units is relatively low on the

majority of estates (below 10%), with only East Worthing Industrial Estate and Goring Business Park

currently having vacancy rates of above 10% of the total floorspace.

Table 4.2: Vacancy Levels within Key Employment Areas

Employment Area Total Floorspace

sq.ft. Vacant Floorspace

sq.ft. Vacancy Rate

% Broadwater Business Park 875,415 33,188 4Canterbury Road 104,726 0 0Downlands Business Park 200,071 0 0East Worthing Industrial Estate 936,939 168,114 18Faraday Close 392,624 17,728 5Goring Business Park 253,375 40,730 16Ivy Arch Road 163,502 3,254 2Meadow Road 287,180 11,216 4Station Road 25,825 2,045 8Yeoman Way 143,366 11,332 8Total 3,383,023 287,607 8.5%

Source: Knight Frank Survey 2009

The quality of the units within each of the ten key employment areas has been visually assessed by

Knight Frank based on the classification adopted for the 2005 industrial estates survey, which was as

follows:


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- “Grade A” = New, modern or recently refurbished;

- “Grade B” = Sound premises but old;

- “Grade C” = Requiring attention for more than the most basic of storage uses; and

- “Grade D” = Derelict.

Table 4.3 presents the results of the quality assessment, which reveals that the majority of units

within the key employment areas are classed as “Grade B”. There are several modern or recently

developed estates, such as Yeoman Way and Downlands Business Park with 100% “Grade A” stock.

The estates that have a significant proportion of “Grade C” stock include Canterbury Road, Ivy Arch

Road, and Station Road. These three estates are located adjacent to the railway line and contain

industrial premises of pre-1970s construction.

There was only two units identified as being derelict and unsuitable to let, and these can be found at

Woods Way at Goring Business Park.

Table 4.3: Quality of Industrial Premises within Key Employment Areas

Employment Area Number of Units Grade A % Grade B % Grade C % Grade D %

Broadwater Business Park 62 31 50 19 0Canterbury Road 16 0 13 88 0Downlands Business Park 13 100 0 0 0East Worthing Industrial Estate 105 6 81 13 0Faraday Close 10 50 50 0 0Goring Business Park 53 15 58 23 4Ivy Arch Road 26 0 12 88 0Meadow Road 41 46 34 20 0Station Road 22 36 0 64 0Yeoman Way 16 100 0 0 0Total 364 25.8 45.6 28.0 2.1

Source: Knight Frank Survey 2009

4.2.2 Description of Each Estate

We present below, a brief description of each of the key industrial estates and business parks.


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Broadwater Business Park

Northbrook Business Park GlaxoSmithKline

The Broadwater Business Park is located on the eastern side of the Borough, and comprises units

along Penfold Road, Southdownview Way and the managed estates of Downsbrook Trading Estate,

Northbrook Trading Estate and Northbrook Business Park. In addition, there is the GlaxoSmithKline

facility, which is the largest industrial occupier in the Borough, with a site of circa 14 hectares.

The estate is the second largest in the Borough providing circa 875,000 sq.ft. in 62 units on 21

hectares. The estate is located adjacent to residential streets with accessibility to the A27 is via

Sompting Road or the narrower Northbrook Road.

The quality and size of units at Broadwater is mixed, with Northbrook Business Park providing the

best quality units having been built within the last ten years. Conversely, Penfold Road and parts of

Southdownview Way provide ageing industrial units of circa 1960s/70s.

The estate is well occupied, but requires some partial redevelopment in places. Most notably, there

is one large unit of approximately 28,000 sq.ft. with surface car parking, which occupies a prominent

position fronting Southdownview Road, but appears to be under-utilised, with little employment

activity taking place. This is a potential long-term redevelopment opportunity that could provide

space for a small industrial unit scheme.

The key sectors within the estate include pharmaceuticals, with the presence of GSK, and specialist

manufacturers such as CILS International (manufacture of labels) and Seward (manufacture of

sampling instruments). There are builders merchants, such as Plumbase and Plumb Center, as well

as several car repair garages.


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Canterbury Road

Canterbury Road Garcia Trading Estate

The Canterbury Road industrial area includes Garcia Trading Estate and the adjacent industrial units,

located at Friar Walk off Canterbury Road.

The estate is relatively small, providing circa 105,000 sq.ft. within 16 units on 2 hectares of land.

The two industrial areas are accessed via South Street with Canterbury Road characterised by

residential properties. Possibly due to the residential nature of the area, Garcia Trading Estate is

restricted to opening hours of 06:00-18:00.

Although the quality of the units are predominantly “Grade C”, the estate at present is fully occupied

and provides affordable space for storage and manufacturing activities, including Aero Technics Ltd,

a company which designs and kits out the interiors of aircraft.


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Downlands Business Park

Downlands Business Park is located at Lyons Way at the rear of the retail park with immediate

accessibility to the A27. The business park was built in 1990 and provides 200,000 sq.ft. in 13 units

on 4 hectares of land.

The estate is fully let and provides “Grade A” warehouse and office accommodation to several large

occupiers, including Saywell International, a company providing parts for the aerospace industry,

Cordia Healthcare, a pharmaceutical distribution firm, and Waukesha Bearings, a manufacture of

bearings and bearing systems.

Due to the presence of the South Downs to the north, sensitive open countryside to the east, and

existing retail uses to the south and west, there is limited room to expand the business park in future

years.

East Worthing Industrial Estate

Dominion Way East Ham Bridge Trading Estate


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East Worthing Industrial Estate is the largest industrial area in the Borough providing close to

950,000 square feet in 105 units on 19 hectares of land. The estate is located adjacent to

Broadwater Business Park at the eastern fringe of the Borough.

The estate comprises units at Southdownview Road, Dominion Way East and West, Teville

Industrials, Easting Close, Hazelwood Close, Hazelwood Trading Estate, Ham Bridge Trading Estate

Timberlaine Trading Estate, and Southdownview Works. A number of the trading estates are

managed by Sussex Industrials.

Access to the A27 is predominantly via Dominion Road/Sompting Road, or Southdownview Road,

Northbrook Road, although this route is residential in character.

There is a wide range of unit sizes and ages, providing space for small, medium and large occupiers

within the estate.

The quality of the stock is predominantly 1970s/80s “Grade B”, with limited recent development.

Currently, 17% of the stock is vacant, with the most significant cluster of vacant units at Dominion

Way West, which requires some new investment. In addition, the former Whiteheads Fabric Building

at Hazelwood Close, and Unit 9 Timberlaine Trading Estate are vacant and also require new

investment.

The major occupiers on the estate include:

- EDF Energy (administrative offices);

- Eurotherm Controls Ltd (data acquisition and industrial process control equipment);

- Roscomac Ltd (precision engineers);

- L&S Printing Group (printing);

- Rug Doctor (carpet cleaning and chemicals);

- Wenban Smith (timber merchants);

- Nordell Ltd (plastic extrusions and mouldings);

- Furniture Works (furniture manufacture); and

- Cordia Healthcare: Europharm of Worthing (pharmaceuticals).


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These occupiers demonstrate the diversity of employment activity on the estate from local services,

such as car repair workshops and builders merchants to small-scale precision manufacturing. The

presence of GSK has created a cluster of pharmaceutical businesses, such as Cordia Healthcare

and Allergies Therapeutics.

The estate has the potential to be expanded in the future to the east at Decoy Farm, although this

site is formerly a landfill site, and is likely to require remediation.

Faraday Close

Eurotherm Littlehampton Book Services

Faraday Close is a small industrial estate providing close to 400,000 sq.ft. within ten units on 8

hectares of land. The estate is located on the western side of Worthing Borough, with good access

to Littlehampton Road (A2032) and the A27.

The site includes the former Nissan facility, which includes a large 270,000 sq.ft. warehouse and

office block (Columbia House). In addition, the estate has a small number of industrial buildings,

occupied mainly be Eurotherm Controls Ltd, a key employer in Worthing.

The estate was built in circa 1970s, although Cignet Trading Estate within Faraday Close has

recently been refurbished. Some of these newly refurbished units are currently vacant and on the

market to let.

Columbia House is a refurbished 1970s building providing flexible office space of circa 46,000 sq.ft.,

and is currently 70% occupied with a variety of firms in real estate, IT, marketing, and legal activities.


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Littlehampton Book Services occupies the large former Nissan warehouse on the estate for the

storage and distribution of books.

Goring Business Park

Holm Oak Business Centre Martlet’s Way

Goring Business Park comprises industrial units along Martlets Way, Woods Way and Mulberry

Lane, located south of the railway at Goring-by-Sea. The business park provides circa 250,000

square feet within 53 units on 5 hectares of land.

Access to the estate is via the A259, which links to the Littlehampton Road to the north. The estate

is set within a residential neighbourhood.

Mulberry Lane has several ageing buildings of “Grade C” quality, including the Unifax buildings,

which has several vacant units. Wood Way has a mixture of old and modern buildings, including the

recently converted former QS warehouse into 8 units at Holm Oak Business Centre and the

refurbished Aviation House. Martlets Way is characterised by small business units of less than 5,000

square feet built in the 1970s/80s.

The estate currently has a 16% vacancy rate, which includes a large derelict building of circa 20,000

square feet at Woods Way, which requires redevelopment.

There are opportunities to potentially extend the estate in future years to the east, through the

development of the former sewage treatment works and gas holder site, although these sites have

delivery issues and are in separate ownership.


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Ivy Arch Road

Powerlink Electronics 3663

Ivy Arch Road is a small estate located close to the town centre in Worthing, adjacent to the railway,

and provides 163,500 sq.ft. within 26 units on 3 hectares of land.

The site is accessed from King Edward Avenue, which links to the A24 at Broadwater Road.

The estate has a mix of industrial and office premises, (including CPL House, a serviced office

building) the majority of which appear to be of pre-1980s construction, and considered to be of

“Grade C” quality. In addition, there are non-employment uses within the estate, including a mosque

and Worthing Boys Club (Rotary and Roundtable).

Although the stock on the estate is ageing, the current low vacancy rate indicates that the estate is a

popular, and probably an affordable location for local businesses.

Business activities include, builders merchants, precision engineering, electronic manufacturing,

home removals, car repair workshops, food production and distribution, rehearsal studios, and radio

broadcasting.

Key occupiers, include 3663, the catering supplies company, which occupies a 40,000 sq.ft. facility

ay the entrance to the estate, Kuhr Engineering, Feba Radio Ltd, and Powerlink Electronics.

Some renovation/refurbishment is likely to be required in future years, especially to CPL House and

some of the industrial units.


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Meadow Road

B&W Loudspeakers Thesiger Close

Meadow Road industrial area is located at the eastern fringe of the Borough, and comprises

industrial units located at Silverdale, Thesiger Close, Dale Road and Meadow Road. The estate

provides close to 290,000 sq.ft. within 41 units on 8 hectares of land.

Meadow Road is located close to the seafront, with access via Brighton Road (A259).

The estate has a mix of small and large business units, with a high proportion of modern stock

classified as “Grade A”, including the units at Thesiger Close, and the two largest occupiers, B&W

Loudspeakers and Rossettes Commercial Vehicles.

The B&W Loudspeakers, is an indigenous Worthing company, and its modern facility dominates the

estate and provides circa 130,000 sq.ft. for manufacturing and sales.

Other business activities on the estate, include electronics, precision engineering, waste

management and plant hire, and vehicle repairs and sales.

The estate has a low vacancy rate, although one or two premises are likely to be require

refurbishment or redevelopment in future years.


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Station Road

Modern business unit scheme Sussex Ford and Vauxhall Centre

Station Road is groupings of business activities located at intervals along the narrow residential

street of Station Road, located close to Worthing Town Centre, and adjacent to the railway line. The

cluster of business premises provides close to 26,000 sq.ft. within 22 units totalling around 0.4

hectares of separate parcels of land.

Station Road has experienced some recent investment in the form of nine small business units

located at the eastern end of the Road. However, several units at the western end of the street have

been redeveloped for housing in recent years.

With the exception of the nine unit scheme, the quality of the premises is poor and classified as

“Grade C”. In addition, congestion can build up along the Road, due to its single lane width, with

residential and commercial vehicles parked either side.

Business activity along the street is dominated by car repair and bodywork garages, and the current

low level of vacant floorspace indicates that it is performing a local employment role at present.

Station Road is not considered a prime employment area, and due to its residential character, the

long term role of the street as an employment location must be questioned.


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Yeoman Way

Yeoman Gate Highdown House - Equiniti

Yeoman Way comprises the first speculative office development in Worthing for the past 10-15 years

at Yeoman Gate, together with Highdown House, occupied by Equiniti and Southern Water’s

Headquarters building, Southern House.

The business area is located adjacent to the Littlehampton Road (A2032), providing good road

accessibility to the A27. This area provides circa 145,000 sq.ft. within 16 units on 5 hectares of land.

All of the space is classified as “Grade A” stock.

The new office scheme at Yeoman Gate was completed in early 2007, and comprises 13 two storey

units with dedicated surface car parking. There are five units available to let at the current time.

In terms of business activity, Southern Water occupies the largest amount of floorspace with 61,000

sq.ft. in South House, followed by Equiniti, a shareholder services company, which occupies 50,000

sq.ft. at Highdown House. Within Yeoman Gate, there is a cluster of real estate firms (Ashton Rose,

Cluttons Tod Miller, RW Hilder, MJH Executive Homes, ) plus accountants and banking (Spofforths

and RBS), and more creative firms (Shoal Creative, Mosaic On-line Systems).

The scheme has provided opportunities for local firms to purchase their own offices freehold, as well

as providing better quality space with dedicated car parking.

There is an opportunity to extend Yeoman Gate to the west, utilising under-used land within the

ownership of Northbrook College.


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4.3 Offices

Worthing has significant areas of office accommodation across the Borough, in town centre, edge-of-

centre and out-of-town locations. Some of the out-of-town office stock has already been covered by

our analysis of the key employment areas.

Our analysis of the 2005 Ratings List indicates that out of the total office floorspace of 1.89m square

feet (net internal area), approximately 25% can be found within the existing town centre boundary (as

set out in the Local Plan) 15% can be found in edge-of-centre locations, and the remaining 60% can

be found in out-of-town locations.

Appendix 2 sets out our mapping of the town centre and edge-of-centre office areas, based on the

existing Local Plan town centre boundary, and our interpretation of what can be considered edge-of-

centre.

4.3.1 Out-of-Town Offices

West Sussex PCT, The Causeway Inland Revenue, Barrington Road

Worthing has some key out-of-town office occupiers, including:

- Inland Revenue offices at Barrington Road, Goring – circa 250,000 sq.ft.;

- Southern Water Services at Yeoman Way – circa 60,000 sq.ft.;

- EDF Energy, East Worthing Industrial Estate – circa 53,000 sq.ft.;

- West Sussex County Council, Durrington – circa 50,000 sq.ft.;


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- Equiniti (Shareholder Services), Yeoman Way – circa 50,000 sq.ft.

- West Sussex Primary Care Trust, The Causeway – circa 42,000 sq.ft.; and

In addition, there is the multi-let office block, Columbia House at Faraday Close comprising

approximately 46,000 sq.ft. The majority of recent office development has occurred in out-of-town

locations, particularly Yeoman Gate, which offers a total of circa 32,000 sq.ft. of office

accommodation, available for sale and to let. In addition, there are one or two office occupiers at

Downlands Business Park. These two examples indicate that offices in locations close to the

A24/A27 are attractive to the local market.

The breakdown of office units, as set out in Table 4.4 shows that the majority of office suites in out-

of-town locations are below 1,000 square feet. These small units can be found at Columbia House,

above local shopping parades throughout the Borough and in other small unit schemes, such as

Oaklands Business Centre at Elm Grove.

Table 4.4: Size Breakdown of Offices in Out-of-Town Locations Size Range sq.ft. Number of Units % of Units 0-500 63 42500-1,000 33 221,000-5,000 38 255,000-10,000 4 210,000-20,000 1 120,000 + 12 8Total 151 100

Source: VOA

A proportion of the out-of-town office stock is vacant. The most notable vacancies include the Lloyds

Bank buildings at The Causeway, which provides a total of circa 63,000 sq.ft., and the (impending

vacant) Aviva office complex at The Warren, Hill Barn Lane, which provides 125,000 sq.ft. Both of

these sites are appraised in Chapter Six.


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4.3.2 Edge-of-Centre Offices

MGM Advantage, Heene Road Parexel MMS Europe, High Street (North)

There are clusters of offices in edge-of-centre locations in streets adjacent to the town centre. The

largest concentration of offices are located at Worthing railway station (Railway Approach/Teville

Road), Little High Street/High Street (northern part) to the north of the town centre, Farncombe Road

to the east of the town centre, and Grafton Road and Crescent Road to the west of the town centre.

The key occupiers in these areas include:

- MGM Advantage, Heene Road – circa 39,000 sq.ft.

- Inland Revenue, Railway Approach – circa 29,000 sq.ft.;

- Parexel MMS Europe Ltd (Medical Communications), High Street (North) – circa 21,000

sq.ft.;

- Wilfred T Fry Ltd (Financial planning), Crescent Road, circa 20,000 sq.ft.;

- HSBC (Asset Finance Dept.), Farncombe Road, circa 12,000 sq.ft.;

- Quest Duthoit Ltd (Chartered accountants), Farncombe Road, circa 12,000 sq.ft.; and

- Marlin Financial Services Ltd (Financial recovery services), Grafton Road, circa 10,000 sq.ft.

The breakdown of offices, as set out in Table 4.5 shows that the majority of units in edge-of-centre

locations are between 1,000-5,000 sq.ft. This may reflect the presence of more stand alone office

buildings, and a lower proportion of small office suites above shop premises in these locations.


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Table 4.5: Size Breakdown of Offices in Edge-of-Centre Locations Size Range sq.ft. Number of Units % of Units 0-500 18 17500-1,000 24 221,000-5,000 56 525,000-10,000 1 110,000-20,000 4 420,000 + 4 4Total 107 100

Source: VOA

In terms of quality, Knight Frank has assessed both the edge-of-centre and town centre office stock

from an external perspective, using a broad classification that may not conform to the ‘usual’ property

market grading systems. For the stock in Worthing, we have adopted the following classifications:

- "Grade A" = New or high quality modern or second-hand refurbished;

- "Grade B" = Sound period or second-hand refurbished;

- "Grade C" = Low grade 1960s/70s stock or low grade suites above shop units.

Figure 4.2 displays the results of our quality assessment by floorspace size, revealing that the

majority of space at edge-of-centre locations is Grade B, with only a small proportion considered to

be Grade A. The dominance of Grade B accommodation reflects the presence of a good number of

regency properties in locations such as Farncombe Road, Crescent Road etc.

The buildings considered to be ‘Grade A’ are Saxon House at Little High Street, Wicker House at

High Street (north), Capella House at Railway Approach, and Amelia House at Crescent Road.


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Figure 4.2: Quality of Office Floorspace in Edge-of-Centre Locations

Source: Knight Frank

4.3.3 Town Centre Offices

Environment Agency, Guildbourne House Liverpool Terrace

The town centre has a well established office function with a number of long established businesses

in a variety of accommodation, from stand-alone office buildings of regency or 1960s/70s

construction, to small suites above shop units.

Grade A17%

Grade B63%

Grade C20%


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The key clusters of office activity are Liverpool Terrace/Liverpool Gardens, the Council Offices/Law

Courts at Richmond Road, Chatsworth Road, Chapel Road, and North Street/High Street.

The nature of the town centre stock tends to be multi-occupied office buildings with only a handful of

large single occupiers. The key office occupiers within the town centre are:

- Worthing Borough Council, Richmond Road – circa 50,000 sq.ft.;

- Environment Agency, Chatsworth Road – circa 36,000 sq.ft.;

- Department of Work and Pensions, High Street – circa 28,000 sq.ft.; and

- Thomas Eggar (lawyers), Liverpool Gardens – circa 12,000 sq.ft.

The breakdown of offices within the town centre as set out in Table 4.6 shows that the majority of

offices are between 500-1,000 and 1,000-5,000 square feet. This may reflect the presence of more

multi-occupied buildings, especially above shops.

Table 4.6: Size Breakdown of Offices in the Town Centre Size Range sq.ft. Number of Units % of Units 0-500 32 18500-1,000 62 351,000-5,000 74 415,000-10,000 7 410,000-20,000 1 120,000 + 3 2Total 179 100

Source: VOA

In terms of quality, using the same grading classification adopted for the edge-of-centre office stock,

we have assessed from an external perspective the town centre office floorspace. Figure 4.3 reveals

that the majority of office stock within the town centre is classified as Grade B. Grade C stock can

usually be found in 1960s buildings, or low grade suites above shop units. Grade A stock is

particularly low and reflects the lack of recent developments within the town centre, with most of the

newer stock built in the last ten years or so located in edge-of-centre and out-of-centre locations.

The key Grade A buildings identified in the town centre are Chatsworth House, Chatsworth Road,

Davison House, North Street (Worthing Homes Ltd), Ingram House, Liverpool Road, and Pharos

House, 67 High Street. The lack of new stock within the town centre is also a reflection of the


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complexities of developing in the town centre and the higher costs in terms of acquiring/assembling

land.

Figure 4.3: Quality of Office Floorspace in Town Centre Locations


To gauge the general issues with the town centre office stock within Worthing, we have spoken with

a ‘basket’ of town centre occupiers. Whilst, we acknowledge that their views, statistically are unlikely

to represent all of the occupiers within the town centre, there were a number of common themes to

emerge, which provides some qualitative commentary on the town centre stock.

Firstly, occupiers highlight that there are certain positive benefits from being located in the town

centre, such as the access to clients and shops and services that make its attractive. However, there

are some negative drawbacks also highlighted by town centre occupiers, with the cost of car parking

the key issue raised.

In terms of accommodation, generally most occupiers that we spoke to are satisfied with their current

offices, although when questioned about the possibility of moving outside of the town centre, a

number of these same occupiers stated that they would consider it.

Grade B75%

Grade C16%

Grade A9%


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4.4 Provision of Serviced/Managed Units

Worthing offers a limited amount of serviced / managed units of varying quality.

Significant office space is offered at the 46,000 square foot Columbia House, a successful managed

office operating out of the former Nissan UK office building by F & C Asset Management. 44 units

are available of varying sizes (ranging from 150sq ft to 3,000 sq ft), which provides accommodation

for 35 businesses from a range of sectors. Flexible terms are offered ranging from a 6 month licence

to 5 year lease. The building, which was running at full occupancy in 2006, now has an occupancy

rate of 70%. The building does not operate like a standard ‘serviced offices’ operation, as units are

offered unfurnished, although there is a service charge for the communal reception area, the meeting

rooms (x 2), 24 hour access, and security.

Discussions with F & C’s building manager confirm that the facility caters for the local / sub-regional

market; the majority of firms are from Worthing and the immediate area. There has been a significant

decline in enquiries for start up space over the last 6 months, but the building manager expects this

to change with the general up-turn the economy.

The building underwent major refurbishment in 2000. The major business advantages, identified by

occupiers, include accessibility to the A27 and the availability of car parking. Indeed, there are

examples of companies moving out of the town centre to re-locate to Columbia House due to these

factors.

No. 8 High Street, Worthing, a custom built 1970s office building on ground and four floors. The

offices available have been refurbished with new suspended ceilings and Category 2 lighting. Units

are let on a licence to occupy, with the opportunity to give three months notice to vacate, after six

months or any subsequent month.

CPL House, Ivy Arch Road is a 1960s/70s three storey office building located within an established

industrial estate with unit ranging from 90-1,100 square feet. Flexible leases are available.

Smaller serviced space is also available at Railway Approach, which is currently being refurbished

to a high standard and Oaklands Business Centre at Elm Grove, which provides lower quality

workshop and office space.


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There is no incubation space (linked to an educational or R&D facility) within the Borough, and with

the presence of Northbrook and Worthing Colleges, as well as GSK, this represents a key

opportunity, especially as the Worthing economy is predominantly based on micro and small and

medium sized enterprises.

The development and provision of business incubation to accommodate newly-formed companies in

an environment conducive to growth has been identified as crucial in facilitating knowledge

commercialisation. Business incubators help start-up businesses with high growth potential to

success by providing hands-on support in a “hot house” environment in which business innovation

and growth flourish.

It is important to understand: what is exactly meant by the term “incubation”? There are many

different titles / names used to describe the support infrastructure and the process of business

incubation. These include:

• Science Park

• Business Incubator

• Innovation Centre

• Managed Workspace.

In practical terms, a Science Park is a generic term usually defined as a cluster of knowledge-based

businesses, where support and advice are supplied to assist in the growth of companies. In most

instances, science parks are associated with a centre of technology such as a university or research

institute. The term can encompass a range of initiatives, which can vary greatly. There is thus no

question of rigid definition or of a single transferable model. The characteristics of each Park are

determined by its objectives, its location, the prevailing climate and the local expertise and resources

available.

Business Incubators provide intensive, hands-on support and services to assist specifically in the

creation and the early stages of business. At least 5 generic forms of business incubators have

emerged over the past 40 years:

• Industrial incubators. These are sometimes sponsored by quasi-government and non-profit

groups, with a primary objective to create jobs by creating employers.


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• University-related incubators. These set out to commercialise the science, technology and

intellectual property coming out of university research. Typically, the university incubator

offers new companies access to laboratories, computers, libraries and the expertise and

assistance of its faculty and students.

• For-profit property development incubators. These incubators provide shared office and

workspace / production space, together with shared services. Clearly, property developers

are primarily interested in rental income and real estate value.

• For-profit investment incubators. These are often little or more than a neat way for venture

capital firms and business angels to have firms in their portfolio in the one location.

• Corporate venture incubators. This is one of the fastest growing and most successful of the

incubator models. Large firms take in small firms and offer money, facilities and expertise

(and perhaps sales resources) for a stake in the firm.

An Innovation Centre is usually a synonym for an incubator, but sometimes it will denote a facility for

nurturing high-tech companies from start-up to well beyond the incubation phase.

Managed workspace is characterised by three factors: small units, short leases and shared central

services. It meets a real need in the economy but is essentially property led and is judged by its

success in maintaining high occupancy levels, rather than by the success of its tenant businesses.

The main features of such workspace are:

• The primary objective is to cover costs and therefore there are few if any entry conditions.

• There is usually no graduation policy – tenant businesses are encouraged to stay and more

space is provided if needed for the business to expand.

• The workspace is occupied by a wide range of businesses, attracted by the flexible rents

and space, including many of which are sole-owners or “lifestyle” firms. Within London,

Workspace Group plc is a major provider to workspace accommodation throughout the

capital.


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In essence, the difference between incubators and managed workspace is that the incubator utilises

managed workspace to encourage business growth – i.e. an incubator is more than a managed

workspace, it has the additional aim of helping client businesses to manage their growth.

In general, business incubators work through the relationships of a number of stakeholders, including

sponsors drawn from the private sector, local government and the broader community including

venture capital providers and professional incubator management. Successful incubators blend these

talents to produce sustainable graduate businesses, the benefits of increased income, employment

and economic development for the local community and, where appropriate, a return on shareholder

investment.

What is considered good / best practice will depend upon the context and purpose of each incubator.

However, we have reviewed a number of reports on successful incubators (UKBI National Incubator

Study 2000 / 2001 “UK Incubators: Identifying Good Practice”) and identified a number of “critical

elements” of a successful business incubator:

• A broad range of supporting stakeholders.

• Local demand from entrepreneurs with early stage small businesses: Incubators should

service a demand from local entrepreneurs looking to improve their survival and growth

prospects of their early stage small businesses. An effective incubator needs to maintain

adequate tenant occupancy to replace the regular graduation of existing tenants. A ready

supply of emerging local businesses is essential to the long-term sustainability of any

incubator programme.

• Provision of a range of facilities and services to tenant businesses: In all cases,

incubators should seek to nurture the survival of tenant businesses and enhance their growth

prospects, rather than passively providing shared office or workspace facilities.

• Effective incubator management: The role of incubator management is crucial including

providing clarify in terms of selection and exit procedures.

• Regular turnover of graduate businesses.


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• Economic and community impact: The incubator has to deliver results against the

outcomes that the stakeholders want, particularly in the case of public sector partners.


• The general trends in the Worthing property stock over the last ten years (1998-2008) have

been a rise in the quantum of office space, a fall in factory space, and a rise in warehouse

space. This mirrors the wider economic trend, with a decline in manufacturing, and growth in

the service sector, with demand for warehousing space driven by changes in the retail

sector.

• The Borough has ten key industrial estates or business parks, providing 70% of the total

employment stock. These, predominantly industrial areas, are well occupied, with an

average vacancy rate of only 8.5%, and only two estates (East Worthing and Goring

Business Park) with vacancy rates over 10%.

• The quality of the key industrial estates and business parks is mixed, with the predominant

type of space classified as ‘Grade B’. ‘Grade C’ or derelict space (Grade D) accounts for

30% of the stock. Several estates have a high proportion of Grade C and D space, including

Canterbury Road, Station Road and Ivy Arch Road, although these areas also have some of

the lowest vacancy rates in the Borough. This demonstrates that poorer quality stock

appears still to be attractive to certain occupiers. Within the other estates, there are pockets

of under-utilised or vacant Grade C and D space that require investment, including:

o The large unit fronting Southdownview Road at Broadwater Business Park;

o The cluster of vacant units at Dominion Way West within East Worthing Industrial

Estate;

o Former Whiteheads Fabric Building within East Worthing Industrial Estate; and

o The large derelict building at Woods Way, Goring Business Park.

• Of all of the key employment areas, Station Road is perhaps the one area that has major

locational constraints, being situated along a narrow residential street. Whilst the eastern

end of Station Road has a cluster of modern units, the remainder of the street has pockets of

predominantly car repair garages. There have also been some recent changes of use to

residential.


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• The office stock is located across the Borough, although the majority of space can be found

at out-of-town locations, due to the presence of some major occupiers, such as Inland

Revenue and West Sussex Primary Care Trust at Goring, Southern Water, Equiniti and West

Sussex County Council at Durrington, and EDF Energy at East Worthing. The most recent

office development within the Borough can also be found out-of-town at Yeoman Gate. This

demonstrates that out-of-town locations remain attractive to occupiers, especially those

requiring large floorplates that are difficult to secure within the town centre.

• There are some important office areas in edge-of-centre locations, especially around

Worthing Station, Little High Street/High Street (north), Farncombe Road, and Grafton Road

and Crescent Road. In these locations, there is mixture of Regency, 1960s/70s and more

modern buildings. The most recent stock has been developed in the Little High Street/High

Street (north) area. There are generally more opportunities within edge-of-centre locations,

compared to the town centre, to create stand-alone office buildings with larger floorplates.

The majority of the stock is classified ‘Grade B’, although there is also a considerable

amount of ‘Grade C’ stock. Key occupiers include MGM Advantage at Heene Road, Inland

Revenue at Railway Approach and Parexel MMS Europe at High Street (north).

• Within the town centre, there are several large occupiers, such as Worthing Borough Council

at Richmond Road, Environment Agency at Chatsworth House, and Department of Work and

Pensions at High Street, although the majority of businesses occupy offices of up to 5,000

square feet. There are some key office areas within the town centre including Liverpool

Terrace/Liverpool Gardens, Chatsworth Road, Chapel Road, and North Street/High Street.

The majority of space tends to be ‘Grade B’, although there are pockets of ‘Grade C’ space,

along Chapel Road and Warwick Street in the form of 1960s buildings and low grade suites

above shop units.

• The cost of car parking has been highlighted as a key issue for office occupiers within the

town centre, and can be viewed as a key ‘push’ factor. This issue requires a collaborative

response from the Council, landlords and occupiers to find an appropriately satisfactory

solution.

• The provision of serviced or managed workspace within the town is limited, especially as

Worthing has a good base of small businesses, with the opportunity to develop more

business start-ups in future years. A business incubator or innovation centre is lacking within


75

the Borough, and the presence of such a facility would help to develop the business base of

the town, especially in key sectors such as pharmaceuticals, advanced engineering and

creative industries.


76

50

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ec-86

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UK Industrial UK Offices

5.0 Property Market Assessment

To understand the demand dynamics within Worthing, an assessment of the local property market is

required. This section of the report presents our analysis of the office and industrial property markets

within Worthing, and how the Borough compares to other locations in the area and the wider M25

market.

The analysis draws upon official property databases, opinions of local agents, and a review of the

available stock.

5.1 National Investment Market Overview

It is vital to place Worthing’s land and property markets within the context of the UK, as wider

economic developments have, and will continue to have, a key role in influencing investment,

development and occupier market activity at the local level. One of the most influential factors over

the last two years has been the sustained downturn in the commercial property investment market,

with overriding National, and indeed global, factors fundamentally impacting on every local market.

Figure 5.1: Capital Value Index since December 1986

Source: IPD


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Until 2007, commercial property enjoyed a sustained period of double digit returns, fuelled by a

seemingly never-ending stream of capital chasing commercial property. The bubble burst in dramatic

fashion in the summer of 2007 as the much anticipated effects of defaults on loans in the US sub-

prime housing market rippled through the global financial markets. The banks cut back on their

everyday lending to each other, driving up the interbank lending rates and paralysing the wider debt

market. Consequently, investor activity became virtually non-existent and, in the absence of any

transactional evidence, values tumbled. In the two years since mid 2007 average office and

industrial capital values have fallen by -45% and -40% respectively, albeit average values are now at

least showing clear signs of bottoming out.

From the middle of 2008, the UK entered into one of the severest recessions in modern times. Falling

company profits and increasing unemployment have, unsurprisingly, had a significant impact on

demand for business space, leading to increased vacancy and falling rental levels. With regard to the

key employment generating sectors, average UK office rents have fallen by -14% and average

industrial rents 5% since mid 2008. More than ever, the rent achievable on new development will be

key to influencing private sector decision-making.

Significantly with regard to aspirations in planning policy, the downturn in the commercial property

occupier investment markets discussed above has a dramatic impact on speculative development,

which typically plays a key role in moving forward regional and local commercial property markets.

Falling capital values and a lack of financing, added to recent abolition of the Empty Rate relief on

empty buildings amid the recessionary environment have had a significant impact on the

development pipeline across the UK as a whole. Even if growth returns to the economy and occupier

market activity returns to more normal levels, while lenders remain extremely risk averse towards

developer funding, it is difficult to foresee a time that speculative development activity will return to

anything approaching those levels witnessed in recent years. Instead, a reasonable assumption is

that heightened demand for the development of new business space will instead manifest itself

through pre-letting activity.


78

-20

-15

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-5

0

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annu

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UK Industrial UK Offices

Figure 5.2: Average UK Rental Growth Since July 2004

Source: IPD

5.2 Office market analysis

5.2.1 Overview and Context Worthing’s office market comprises a handful of major occupiers who are key local employers

together with a raft of smaller localised businesses. A number of key private sector occupiers moved

or consolidated in the town during the 1960s/1970s including Aviva, MGM and Lloyds TSB.

Today, the majority of occupied office space is held by Worthing Borough Council, West Sussex

County Council, Southern Water, the Environment Agency and other utilities companies. Equiniti,

which was formed out of Lloyds TSB Registrars, is one of the few major private sector occupiers that

remain in the town. In the traditional town centre core, the office stock comprises generally older

properties around Liverpool Gardens and Liverpool Terrace occupied by traditional professional

practices, such as local solicitors and accountants. A small number of these occupiers have been

attracted out, primarily to Yeoman Gate.

Rental values in Worthing have experienced an adjustment since the economic downturn, although

generally these are lower than the more attractive locations of Brighton and Crawley. Table 5.1

presents the typical rents on a per sq.ft. basis for Worthing, showing that Grade A stock in out-of-


79

town locations, predominantly Yeoman Gate are achieving rents of £15.50-£16.00 psf. In

comparison, rents for Grade A or B stock within the town centre can achieve between £8.00-£14.00

psf, which reflects to some extent the lack of brand new space built in the town centre in the last few

years.

Worthing is a weaker office market compared to Crawley and Brighton. Brighton possesses a tight

office market with good educational attainment and a strong catchment of skilled and young staff

affording it a major advantage over Worthing, together with its host of amenities and fast train and

road access to London. Restrictive land availability in Brighton’s town centre has put upward

pressure on rents in recent years. Consequently, development is viable at prime rents of £19.00 psf,

albeit a key disadvantage is the severe lack of parking. Worthing's total stock is circa 1.9m sq ft,

Brighton is circa 4.3m sq ft by comparison and Crawley 3.2m sq ft.

Crawley has generated rents in the mid £24.00 psf, and has better accessibility to the M25 and

Gatwick Airport. Crawley has some large office occupiers associated with Gatwick Airport, such as

British Airways, The Civil Aviation Authority and Virgin Atlantic. In addition, there are other large

occupiers such as BT, Hogg Robison Paymaster and the Providian National Bank, as well as a

strong SME (small and medium sized business) base focused within the financial and business

services sector.

The M25 office market is viewed as the premier out-of-town office location within the UK. While

Worthing falls outside this key area, an analysis of recent performance in this market serves as a

useful barometer and background for developments in the office sector more generally across the

South East and is therefore relevant to current performance and outlook in the Borough of Worthing.

The recession has had a significant impact on occupier demand in the M25 market. Total take-up in

the M25 area fell suddenly in the third quarter of 2008, a period marked by the infamous collapse of

Lehman Brothers and associated crisis in the financial markets. Over the first two quarters of 2009,

take-up has been circa 60% below the long term quarterly average. Looking ahead our forecast is for

take-up to remain subdued and significantly below average over the remainder of 2009 to the second

half of 2010, before recovering to more ‘normal’ levels thereafter.

What demand there will be over the next 18 months will be largely driven by market churn, rather

than expansion, with some opportunistic occupiers (mainly with lease events approaching) exploiting

market condition by securing different premises available on favourable terms. Indeed, across many

of the key towns in the M25 market, net effective rents (rents taking account of rent free periods)


80

have fallen by an average -20% since Q2 2008. However, with landlords having already responded

quickly to the market, further falls will be more muted over the next 12 months, averaging circa -10%.

The recession’s impact of development has been just as dramatic. At the end of the second quarter

2009, the volume of speculative construction underway in the M25 was down 60% from the its five

year high at the end of Q3 2008. This fall has resulted from the recent flurry of completions,

combined with an absence of development starts over the last three quarters. In contrast to the

previous market downturn of 2002 to 2003, when reduced demand then coincided with a flood of

speculative completions, further anticipated increases in vacancy levels will be driven by the release

of second-hand tenant committed space, as many occupiers right-size their accommodation needs.

Table 5.1: Current Office Rental Values

Location Rents (£ per sq ft pa)

Brighton – Grade A £19.00

Crawley / Gatwick – Grade A £24.00

Worthing - Grade A (out of town) £15.50 - £16.00

Worthing - Grade A Town Centre £12.00 - £14.00

Worthing– Grade B, period* £8.00 - £10.00

* rents of £13.50 being achieved in early 2008

5.2.2 Office Take-up

Figure 5.3 shows the quantum of office space recorded over the period 2004 to H1 2009. A total of

82 transactions have been recorded throughout the Borough over the period of analysis, with

average annual take-up between 2004 and 2008 of 54,446 sq ft. In the first half of 2009, however,

office market activity has fallen sharply reflecting the subdued demand for office space now evident

in Worthing, as elsewhere, due the current economic downturn. Over the three years between 2006

and 2008, while the economy was relatively buoyant, the number of transactions within Worthing was

broadly consistent ranging from 18 to 25 in each year. However, reflecting the impact that larger

transactions can have on overall take-up, the actual quantum of take-up fluctuated considerably over

the period.


81

Figure 5.3: Office take-up and transactions in Worthing


5.2.3 Size and Type of Office Occupier Demand Table 5.2 below provides details of the largest office transactions to have occurred in Worthing over

the period of analysis. Of the 82 transactions, only four were in excess of 10,000 sq.ft. The largest

transaction by a considerable margin was Equiniti’s 50,000 sq ft acquisition of Highdown House,

Yeoman Way, in 2007. The other sizeable transaction was Intercare’s acquisition of 30,000 sq ft at

Units B&C, Downlands Business Park in 2005. It is notable that both of these involved Grade A

accommodation and were located out of town. The other two transactions in excess of 10,000 sq ft

actually occurred at the same address, 16-22 Grafton Road, located in the town centre periphery.

Table 5.2: Office transactions over 10,000 sq ft (2004 – H1 2009)

Year Address Occupier Grade Type Size (sq ft)

2007 Highdown House, Yeoman Way

Equiniti A Out of town 50,000

2005 B&C Downlands Business Park

Intercare (Cordia Healthcare)

A Out of town 30,000

2008 16-22 Grafton Road Marlin Financial Services

B Edge of Centre 10,750

2005 16-22 Grafton Road Parexel International B Edge of Centre 10,750 Source: Knight Frank

Transactions above 5,000 sq ft have been rare over the period of analysis, but make up over two

thirds of the total office take-up. However, while large businesses in the town are obviously important

0

20,000

40,000

60,000

80,000

100,000

2004 2005 2006 2007 2008 H1 2009

sq ft

0

5

10

15

20

25

30

35

40

No.

of t

rans

actio

ns

Offices No. transactions


82

in maintaining Borough-wide employment, Figure 5.4 demonstrates that indigenous small and

medium-sized occupiers have arguably been much more crucial in generating consistent office

demand. Over the period of analysis, 59% of the recorded office transactions involved small units of

under 2,000 sq ft with a further 22% of transactions involving units of between 2,000 sq ft and 4,999

sq ft. This pattern supports comments made by local agents, who stated that demand is primarily

focused on this type of product.

Figure 5.4: Size Breakdown of Office Transactions


Discussions with local agents confirmed that office demand has been virtually exclusively local

‘churn’ of predominantly between 500-2,000 square feet, generated by businesses that already had a

presence in the Borough. Indeed, all the agents spoken to all struggled to think of any clear

examples of inward investment taking place over the period. In the main, therefore, demand for

offices has been driven by occupiers either seeking better quality accommodation or larger

accommodation in order to fit in with their expansion plans.

However, local agents also indicate that two established office occupiers are seeking space of

around 15,000 square feet, preferably in the town centre as part of down-sizing strategies.

0

5

10

15

20

25

30

2004 2005 2006 2007 2008 H1 2009

No. o

f tra

nsac

tions

above 10,000 sq ft

5,000 - 9,999 sq ft

2,000 - 4,999 sq ft

1,000 - 1,999 sq ft

under 1,000 sq ft


83

5.2.4 The Location of Office Demand within Worthing

An important emerging policy issue concerns the strategy for the provision of office space in

Worthing’s town centre. Table 5.3 below summarises how take-up over the period of analysis has

been apportioned between each type of location in the Borough.

Table 5.3: Location of Office Transactions


It is notable that while the town centre has accounted for just 33% of total take-up, this location

makes up a greater 40% of total transactions. The opposite is true for out-of town locations, which

account for 47% of take-up over the period but just 25% of actual transactions. Edge-of-centre

locations account for 20% of the total space taken, with much of the activity focused to the immediate

west of the town centre and the area close to Worthing Station, to the north of the town centre. Put

simply, more deals have been done in the town centre, but out of town accommodation has attracted

the larger requirements.

This result is due largely to the skewing affect that two prominent deals (Equiniti and Intercare:

Cordia Healthcare) have had on the overall levels of out of town take-up. However Yeoman Gate

has also been influential in generating the relatively strong levels of out-of town demand following its

completion in 2007. Indeed, since its completion, Yeoman Gate alone has accounted for nearly one

third of total out of town take-up.

Year Take-up (sq ft)

% in Town Centre

% Edge of Centre

% Out of Town

2004 14,238

43.0% 52.5% 4.5%

2005 64,512

32.2% 21.3% 46.5%

2006 42,110

71.1% 23.2% 5.7%

2007 89,149

16.4% 11.1% 72.5%

2008 62,221

27.0% 21.9% 51.0%

H1 2009 3,433

46.5% 28.1% 25.5%

Total 275,663

33.1% 19.9% 47.3%


84

Given the aggressive take-up of units at Yeoman Gate, agents were asked what scope they thought

existed for another similar type of development. It appears that this strong take-up was linked to very

strong pent-up demand (especially freehold demand) at the time, which has now been relieved.

While there may be scope for another such development in the future, agents stated it should be

phased, perhaps offering five units at a time.

Part of the demand analysis focused on establishing what ‘push’ and ‘pull’ factors may exist in terms

of generating a shift in demand either to or away from the town centre. Discussion with local agents

revealed that, in all cases, the shortage of good quality supply was seen as central to the constrained

pattern of take-up in the town centre.

An additional advantage afforded by edge-of-town and out-of-town locations is the greater provision

of parking typically available compared with the town centre. Indeed, lack of parking spaces and the

growing cost of parking was highlighted by agents as a key threat to future prosperity of the town

centre. Occupiers of commercial premises (both offices and retail) are apparently becoming

increasingly frustrated with what is been seen as onerous costs associated with parking following the

introduction of NCP. One agent stated that small premiums for sites with dedicated free parking

spaces are typically paid by occupiers in the town centre.

Whatever the reason, agents suggested an increased movement to the area westward of the town

centre has been evident over the last decade, and to the Durrington area in particular. The westward

area’s key advantages over the town centre are the greater provision of parking available and better

road access via the A27. For example, Columbia House, the former building occupied by Nissan,

was refurbished in 2000 to provide smaller units or ‘break-up’ space. Take-up here was aggressive

with a clear in-movement from formerly town centre occupiers. Since refurbishment, Columbia House

has been typically 90%+ let, albeit the current occupancy of 70% reflects the recent economic

downturn (it was fully let in 2006).

From a developer perspective, agents stated that the westward area is also more attractive for future

new build activity due to the relative difficulties of site assembly associated with the town centre and

its limited parking provision.


85

5.2.5 Office Take-up by Specification Using our classifications of the quality of office supply defined in Chapter Four, the majority of office

take-up over the period of analysis has been focused on Grade A office space. Overall, 55% of

space taken of the period has been classed as Grade A, 35% has comprised Grade B space and just

10% of recorded activity has involved poor quality Grade C space. Figure 5.5 shows how the quality

of take-up has been apportioned by location type over the period of analysis.

Within the town centre, Chatsworth House accounts for all Grade A take-up in the town centre and is

in fact one of the few town centre addresses defined as Grade A. Originally converted from

warehouse use a decade ago, Chatsworth house has also accounted for four of the seven town

centre transactions in excess of 5,000 sq ft over the period of analysis.

This example demonstrates that demand for small and medium-sized units does exist within the town

centre, despite the issues raised with parking, when there is space of sufficient quality made

available at affordable rental levels (circa £13.00 psf). One agent described the building as being

‘very lettable’ as it offers product of a reasonable specification with a mixture of small suites and

several large units. Flexibility and adaptability were cited as important advantages, supporting

occupier churn.

However, 64% of total town centre take-up centre has been classified as being Grade B quality.

Liverpool Terrace and Liverpool Gardens, much of it defined as Grade B, have been the focus of a

substantial proportion of town centre demand over the period. This has comprised a mixture of

refurbished 1970s purpose built offices together with small units in Regency properties where

established or ‘niche’ demand exists among small indigenous professional and business service

occupiers. Despite a reasonable amount of supply along Chapel Road, this parade has accounted for

very little of the space taken, arguably because units here are small, above shop units, and the

quality is generally poor.

The vast majority of Grade A take-up has occurred out of town and largely relates to the two sizable

deals and the completion of Yeoman Gate discussed above. This pattern has arguably been has

naturally influenced by the greater provision of Grade A space out of town, rather than indicating a

clear stronger preference for out of town locations exists over the town centre.


86

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2004 2005 2006 2007 2008 H1 2009

take

-up

sq ft

Freehold Leasehold

Figure 5.5: Take-up by Grade (2004 to H1 2009) Source: Knight Frank, Focus, EGi

5.2.6 Office Take-up by Type of Tenure

Our analysis shows that over the period of analysis, the vast majority of office transactions in

Worthing has been leasehold (see Figure 5.6), with only 12 of the 82 (15%) recorded transactions

being freehold. Historically, the preference for leasehold over freehold premises is normal in the

office sector. However, the surge in commercial property values witnessed between 2005 and 2007

did generate demand for owner-occupation in Worthing during this time.

Figure 5.6: Office Take-up of Freehold / Leasehold Premises Worthing

Source: Knight Frank, Focus, EGi

0

20,000

40,000

60,000

80,000

100,000

120,000

Town Centre Edge of Centre Out of Town

take

-up

(sq

ft)

Grade A Grade B Grade C


87

Unsurprisingly, the majority of transactions involving freehold units over the period have been for

good quality, or ‘investable’ units. According to local agents, until the completion of Yeoman Gate in

2007, Worthing’s office market was dominated by leasehold supply, with no option available to

purchase good quality freehold accommodation. Yeoman Gate relieved strong pent-up demand for

freehold premises. Indeed, Yeoman Gate alone has accounted for 50% of total space taken on a

freehold basis over the period.

Discussion with local agents confirmed that while a degree of aspirational demand still exists for

owner-occupied premises among prospective occupiers (the establishment of SIPPs has been a key

driver), the difficulties with obtaining finance following the credit crunch have made this option both

less possible and less desirable at present. One agent stated that where occupiers are seeking

freehold occupation, they are resigned to the fact that little is available so instead opt to take short

leases with break options as a temporary measure until it becomes more readily available, and

financing more attractive.

5.2.7 Availability of Office Floorspace Figure 5.7 provides an historic illustration of the supply of available office space in Worthing

according to the Worthing Commercial Property Register, carried out each Spring by the Borough’s

Economic Development team. The supply of available office space fell substantially after Spring

2004, from circa 200,000 sq ft to just circa 60,000 sq ft over the subsequent three years. However, in

2009 the amount of space available has surged back to the levels seen in the early part of the

decade, to in excess of 200,000 sq ft. However, this rise is almost exclusively accounted for by the

addition of The Warren, Hill Barn Lane (124,000 sq ft) to the 2009 figures.


88

Figure 5.7: Time series of Office Availability on the Commercial Property Register

Source: Worthing Commercial Property Register

Turning to a more detailed analysis of current availability, Figure 5.8 below shows the quantum of

built offices and space which is available and marketed for occupation in Worthing, together with how

this available space is apportioned according to its quality.

Figure 5.8: Breakdown of Office Availability by Size-band


0

50,000

100,000

150,000

200,000

250,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

avai

labi

lity

sq ft

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

under 1,000 sqft

1,000 to 1,999sq ft

2,000 to 4,999sq ft

5,000 to 9,999sq ft

above 10,000sq ft

sq ft

ava

ilabl

e



89

In recognition that the Register does not capture all space available, it is supplemented by a number

of additional sources, including Knight Frank’s own in-house resources, EGi and Focus databases.

Evidently, the present availability of The Warren has a dramatic effect on the both the availability

profile as a whole and the extent of Grade A accommodation.

The total amount of office floorspace available in Worthing as at H1 2009 stood at circa 273,000 sq ft

spread across 65 units, 45 of which are located in the town centre. Based on the stock analysis

addressed in Chapter Four, this level of availability equates to a Borough-wide office vacancy rate of

14.4%. However, if The Warren, Hill Barn Lane is excluded, the office market possesses a much

lower vacancy rate of 7.9%.

It should be noted that the analysis of office availability excludes the former Lloyds Bank Building at

the Causeway, a 1960s office block of Grade C type. Although circa 40,000 sq ft is currently being

marketed as ‘The Causeway’ by one local agent, it first requires comprehensive refurbishment and is

predicated on part of the site securing planning permission for change of use to retail uses.

Nevertheless, given that this is attracting some interest from prospective occupiers in the Borough, it

should not be entirely discounted from the discussion.

In terms of the quality of available office floorspace, Grade A space accounts for nearly 60%.

However, The Warren’s classification as Grade A again creates a slightly misleading picture. When it

is excluded, the supply of Grade A space is just 27% of the remaining available office space. Thus

high quality space is generally in short supply, with the largest Grade A unit comprising 16,000 sq ft

at Saxon House, Little High Street.

Grade C available stock can be found at locations such as CPL House, Ivy Arch Road, or Chapel

Road, where there is a cluster of poor quality buildings and suites.


90

5.3 Industrial Market Analysis

5.3.1 Overview and Context

Worthing’s industrial market is much greater in size than its office market, with its geographical reach

stretching circa 5 miles east and west into neighbouring Districts. However, Worthing’s location and

180 degree situation does not allow it have an established market for large-scale distribution

warehousing. The two such markets nearest to Worthing are Crawley to the north and Portsmouth /

Southampton to the west. Within the West Sussex, sub-region Crawley is the key distribution hub

serving freight form Gatwick Airport, with Gatwick an international Distribution Centre. Otherwise,

West Sussex is not a strategic location within the UK for distribution.

Inward investment from outside this market area into Worthing has been negligible and instead take-

up is almost exclusively churn or indigenous growth. There are several key major occupiers in the

town including Saywell International, Eurotherm, B&W Loudspeakers and GlaxoSmithKline, all of

which either originated in Borough or are long established. Nevertheless these occupiers generate

additional property demand from the clustering affect brought about by the supply-chain linkages.

The rest of the industrial market is localised, consisting of smaller businesses engaged in activities

such as small scale distribution, building materials, car repairs, tool hire, precision manufacturing etc.

Local agents indicate that the industrial market has held up much better in the downturn than offices.

However, while take-up remains relatively healthy, landlords have had to offer generous discounts on

rental values as the threat of Empty Rates makes leaving properties vacant very unappealing in the

current market. Hence, healthy levels of demand has been supported by pricing with rents for Grade

A currently around £6.50-£7.50 psf, and for good secondary industrial accommodation around £4.50-

£5.50 psf. (see Table 5.4).

In comparison, the markets in Crawley/Gatwick and Brighton are more active, with Crawley focused

on distribution activities associated with Gatwick Airport, including firms such as British Airways

World Cargo and Allport, as well as prominent manufacturers, including airline catering firms such as

Alpha Flight Services, Gate Gourmet and LSG Sky Chefs. Prime rents for industrial space are

typically around £8.00-£9.00 psf.

In Brighton, the industrial market is tighter with less room for major expansion with the industrial

stock characterised by small industrial estates. As a result, new space coming to the market is small


91

unit schemes, such as Westergate Business Centre providing units of circa 1,500-2,500 square feet.

This particular scheme is ‘award winning’ for its on-site sustainable energy, and the size of units, plus

its ‘green’ credentials reflects the rents achieved of £8.50 psf.

Table 5.4: Current Industrial Rental Values Property type Rents (£ per sq ft pa)

Brighton – Prime rents £7.50 - £8.50

Crawley / Gatwick – Prime rents £8.00 - £9.00

Worthing – Grade A £6.50 - £7.50

Worthing – Good secondary £4.50 - £5.50

5.3.2 Industrial Take-up As Figure 5.9 shows the recorded quantum of industrial space transacted in Worthing fluctuated

dramatically during the period 2004 to H1 2009. A total of 105 transactions have been recorded

throughout the Borough, with average annual take-up over the period 2004 to 2008 of 126,000 sq ft.

Compared to the subdued levels of take-up in 2004 and 2005, 2007 was clearly a boom year in

Worthing’s industrial market, with circa 323,000 sq ft of take-up and 32 transactions. In this year,

Saywell International acquired 143,000 sq ft at Downlands Business Park which, according to one

agent, was the largest single industrial transaction in the Worthing market in nearly 20 years.

In contrast with the subdued activity in the office market at present, industrial take-up has been

surprisingly robust in the first half of 2009 given the wider impact of the economic downturn on

commercial property market activity. Indeed, take-up over the first half of 2009 equates to 88% of the

annual average level over the period 2004 to 2008. The 50,929 sq ft acquisition of Aviator House,

Goring Business Park by World of Books in H1 2009 was in fact the second largest transaction to

have occurred in Worthing over the period of analysis. However, while take-up remains relatively

healthy, landlords have had to offer substantial discounts on rents due to the threat of Empty Rates.


92

Figure 5.9: Industrial Take-up and Transactions in Worthing


Table 5.5: Industrial Transactions above 20,000 sq ft (2004 – H1 2009) Year Address Occupier Grade Size (sq ft) H1 2009

Aviation House, Goring Business Park

World of Books A 50,829

2007 Units A-I, Downlands Business Park

Saywell International A 143,000

2007 Units K-L Downlands Business Park

Waukesha Bearings Ltd

A 23,300

2007 14 Hazelwood Trading Estate Whitehead Fabrics Ltd

B 20,355

2006 15-16 Hazelwood Trading Estate

Lemo (UK) Ltd B 24,010

2006 J Salbstein, Brougham Road Jewson B 29,419


Large industrial transactions have naturally been important in shaping the overall levels of take-up

over the last five years, but the majority of occupier activity in the industrial market has involved

transactions for smaller units. Over period of analysis, 63% of transactions in the industrial market

have involved units of less than 5,000 sq ft, and the majority of these in fact were for units of under

3,500 sq ft. A further 24% of transactions over the period have involved slightly larger units of 5,000

to 9,999 sq ft.

0

5

10

15

20

25

30

35

40

2004 2005 2006 2007 2008 H1 2009

take

up

(sq

ft)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

No. o

f tra

nsac

tions

Sq ft No. transactions


93

Figure 5.10: Industrial Market Transaction by Unit Size


5.3.3 Industrial Take-up by Specification

Overall, good quality Grade A space has been central to transactional activity in Worthing,

accounting for 53% of take-up over the period. However, as Figure 5.11 demonstrates, the two large

deals of over 50,000 sq ft are both classified Grade A and alone make up the bulk of Grade A take-

up in Worthing. Of these, Saywell’s 143,000 sq ft acquisition at Downlands Business Park should be

regarded as exceptional in the market. Also notable is the fact that poor quality Grade C

accommodation has been largely avoided, making up just 4% of take-up. Significantly, however

Grade C accounts for 34% of current industrial availability.

0

5

10

15

20

25

30

35

2004 2005 2006 2007 2008 H1 2009

No.

of t

rans

actio

ns

above 50,000 sq ft

20,000 - 49,999 sq ft

10,000 - 19,999 sq ft

5,000 - 9,999 sq ft

0 - 4,999 sq ft


94

Figure 5.11: Industrial Take-up by Specification and Size-band (2004 – H1 2009)


For the smaller size-bands below 50,000 sq ft the pattern of take-up has been more mixed between

Grade A and Grade B. Notable is the fact that unit sizes ranging from 5,000 to 9,999 sq ft have been

an important aspect of take-up, but dominated by Grade B accommodation (78% of take-up in the

size-band has been Grade B type). A tentative conclusion is that demand is healthy for product of

this size and the lack of supply of high quality stock in this size range is forcing prospective occupiers

to take lower quality premises. The same could also be said for unit sizes of 20,000 to 49,999 sq ft.

Special mention should be made of Northbrook Business Park, the most recent new build industrial

scheme in the Borough. The Business Park, built in 2005, has been central to transactional activity of

Grade A space in the smallest 0-5,000 sq ft size-band. Between 2005 and 2007 a total of 53,736 sq

ft of space was transacted here, the majority of which was freehold, and alone it accounted for circa

70% of Grade A take-up in this size category. Partly due to the unique freehold offering, demand at

Northbrook Business Park was very strong, with all units let within nine months of practical

completion. Agents cited Northbrook Business Park as a clear example of the strength of demand

apparent for this type of product in the Borough and saw scope for similar such development in the

future, albeit phased on a more gradual basis.

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0 - 4,999 sq ft 5,000 - 9,999 sqft

10,000 - 19,999sq ft

20,000 - 49,999sq ft

above 50,000 sqft

Take

-up

sq ft



95

5.3.4 Industrial Take-up by Type of Tenure

Over the period of analysis, the majority of industrial transactions in Worthing have been leasehold

(see Figure 5.12), with 39 of the 105 (37%) recorded transactions being freehold type. Generally,

there is a greater preference for freehold premises in the industrial sector compared with offices and

this would appear the case in Worthing. It is notable that, despite greater difficulties in obtaining

finance, take-up of freehold has continued following the downturn in commercial property in mid-

2007.

Many of the transactions involving freehold units over the period have taken place at Northbrook

Business Park. Similarly to Yeoman Gate, the availability of good quality accommodation on a

freehold basis here helped to relieve strong pent-up demand for this type of ownership. Indeed,

nearly all of the units at Northbrook Business Park were acquired on a freehold basis and, taken

alone, this development accounted for 15 of the 37 (41%) of industrial freehold transactions over the

period

Figure 5.12: Industrial Take-up by Tenure Type


0

50,000

100,000

150,000

200,000

250,000

300,000

2004 2005 2006 2007 2008 H1 2009

take

-up

(sq

ft)

Freehold Leasehold


96

5.3.5 Industrial Availability The supply of available industrial space has fluctuated significantly over the last decade. Figure 5.13

provides an historic illustration of the supply of available premises in Worthing according to the

Worthing Commercial Property Register. Figure 5.13 reveals that the supply of available of industrial

space was at its peak in 2003, at 320,000 sq ft, but has reduced substantially in the years thereafter,

to just under 150,000 sq ft.

Figure 5.13: Historic Industrial Availability in Worthing

Source: Worthing Borough Council

Figure 5.14 below shows the current quantum of built industrial space, which is available and

marketed for occupation in Worthing, together with how this available space is apportioned according

to its quality. As with the office analysis, the data is based on a combination of sources including the

Worthing Commercial Property Register, Knight Frank’s own in house resources and EGi and Focus

databases in order to build a comprehensive picture of available stock.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

avai

labi

lity

sq ft


97

0

10,000

20,000

30,000

40,000

50,000

60,000

0 - 4,999 sq ft 5,000 - 9,999 sq ft 10,000 - 19,999sq ft

20,000 sq ft -49,999 sq ft

50,000 sq ft +

sq ft

ava

ilabl

e


Figure 5.14: Current Industrial Availability as at H1 2009

Source: Knight Frank, Worthing Borough Council, EGi, Focus

The total amount of industrial floorspace available in Worthing as at H1 2009 stood at circa 240,300

sq ft spread across 46 units. Based on the stock analysis addressed in Chapter Four, this level of

availability equates to a Borough-wide industrial vacancy rate of 7.9%, which is relatively low.

Further to the pattern of constrained supply overall, in terms of the quality of available industrial

floorspace, high quality Grade A supply accounts for just 4% of the total available (or just 3 of the 46

available units), all of which is below 10,000 sq ft. Grade B clearly dominates the available supply of

industrial space in the Borough, accounting for 62% of the total available with concentrations of units

noted at Timberlaine Trading Estate, Hambridge Industrial Estate and Northbrook Trading Estate.

Given the lack of demand for Grade C accommodation referred to in the take-up analysis, it is

striking that this poor quality defined space accounts for a sizeable 34% of current availability.

5.4 Identification of Gaps in Supply and Demand

To assist with our conclusions and recommendations regarding the future policy requirements for

Worthing’s employment land market, this section brings together the key statistical findings from the

supply and demand analysis in earlier sections of this study to help to identify gaps.


98

Starting with the quantum of supply, Table 5.6 relates average annual take-up to current availability

to examine how much pressure exists, or otherwise, to promote new supply. In the offices sector, the

amount of space currently available equates to 5.0 years of average office take-up over the period

2004 to 2008, leading to an interpretation that there is sufficient available stock at present to meet

short term demand in the market.

However, the picture changes considerably if The Warren, Hill Barn Lane is excluded. Given that this

124,000 sq ft unit may struggle to attract occupation without modification for ‘break-up’ space to suit

smaller occupiers, it could be argued that it is currently ‘out of sync’ with the nature of local demand.

Furthermore, The Warren may well be deemed more appropriate for other uses. Thus, excluding The

Warren, total office availability amounts to 149,000 sq ft, which equates to just 2.8 years of office supply, which is considered to be relatively low in a stable market.

In the industrial sector, average annual demand between 2004 and 2008 equates to just 1.9 years of

average industrial take-up over the period 2004 to 2008. The indication is therefore that Worthing’s

industrial market is presently undersupplied. While Saywell’s exceptional 143,000 sq ft transaction

has obviously been influential in skewing the strong average demand, even with this transaction

excluded, availability equates to 2.5 years of industrial supply, which again is considered relatively

low in a stable market.

Table 5.6: Average take-up and year of supply

Offices (sq ft) Industrial (sq ft)

2004 take-up

14,238

39,025

2005 take-up

64,512

38,148

2006 take-up

42,110

145,093

2007 take-up

89,149

323,361

2008 take-up

62,221

84,808

H1 2009 take-up

3,433

111,589

Average (2004 to 2008)

54,446

126,087

Current availability 273,627

240,305

Years of supply

5.0

1.9 Source: Knight Frank


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In addition to the above, Table 5.7 below, summarises the breakdown of space by quality for the last

five years of take-up and present availability. In the offices sector, a notable 55% of take-up over the

period of analysis has been Grade A, indicating that there is scope for policy to assist refurbishment

and / or development of new space, given the clear preference for Grade A and lack of demand for

poor quality Grade C space. Furthermore, the growth in office employment indicated by our analysis

of the Experian forecasts implies that there is an additional pressure to modernise the existing stock

in addition to raising the total quantum of stock.

Table 5.7: Take-up of Space by Grade Offices Industrial

Grade

% Take-up 2004 – H1

2009 Availability

% Take-up 2004 – H1

2009 Availability A 55% 60%* 53% 4% B 35% 14% 43% 62% C 10% 26% 4% 34%

*Removal of The Warren changes availability of Grade A to 27% total.

The mismatch between demand and the quality of supply is stronger still in the industrial sector. With

over half of the take-up in the industrial sector comprising Grade A accommodation, and just 4% of

the available space comprising Grade A, there is clearly pressure for policy to promote modernisation

of the existing stock in order to retain local occupiers. Just as notable is the fact that poor quality

Grade C accommodation has been largely avoided, making up just 4% of take-up yet accounting for

34% of current industrial availability.

In addition to the above, relating the current availability in terms of unit sizes to take-up by size-band

can provide an additional insight into the dynamics of demand and supply. For both offices and

industrial, Table 5.8 breaks down the availability and transactions by unit size in percentage terms,

so that instances of any mismatch can be identified. For offices, the analysis suggests that the nature

of current supply is broadly synchronised with the past take-up patterns. However, in the industrial

sector, there is some evidence that demand for units ranging from 5,000 sq ft to 9,999 sq ft outstrips

current supply, having accounted for 24% of transactions but making up only 15% of units presently

available. Furthermore, it is notable that there are no units available in the 20,000 sq ft to 50,000 sq ft

size range.


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Table 5.8: Breakdown of transactions and availability by size-band

Offices

Industrial

Size-band

% Transactions 2004 – H1 09

Units available Size-band

% Transactions 2004 – H1 09

Units available

under 1,000 sq ft 35% 38% 0 - 4,999 sq ft 63% 74% 1,000 - 1,999 sq ft 25% 18% 5,000 - 9,999 sq ft 24% 15% 2,000 - 4,999 sq ft 21% 31%

10,000 - 19,999 sq ft 8% 9%

5,000 - 9,999 sq ft 14% 8%

20,000 - 49,999 sq ft 4% 0%

above 10,000 sq ft 5% 5% above 50,000 sq ft 2% 2% Total Units 100% 100% Total Units 100% 100% Source: Knight Frank


• The UK commercial property market has been severely impacted by the economic downturn.

Investment and development activity and, more recently, levels of occupational demand

have reduced substantially amid the recession. Worthing has not been immune to these

developments and it therefore is important that local policy aspirations takes into account the

weaknesses in the commercial property market over the short to medium term and their

impact on occupational and development activity.

• Worthing is not a key employment location within the South East, with Brighton,

Crawley/Gatwick and Southampton/Portsmouth the more attractive destinations for office

and industrial/warehousing occupiers. Reflecting this, the level of inward investment into

Worthing has been extremely limited for the past 20 years, and agents do not view Worthing

as a key employment location to cater for major requirements within the wider national and

regional market.

• In the Worthing office market, demand is characterised by churn from either long-established

or indigenous firms seeking better quality space or space for expansion. Large requirements


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are rare, with the focus of the demand comprising sub 5,000 square feet units, especially

within the 500-2,000 square feet range.

• Close to 50% of the office take-up has occurred out-of-town, due to a combination of two

large transactions occurring in this area and the recent development of Yeoman Gate.

Yeoman Gate was taken-up aggressively, offering high quality space with good accessibility

and car parking which is lacking in the town centre and relieving pent-up demand for new

freehold units.

• This outward movement westwards by office occupiers reflects both the issues of the town

centre stock, in terms of quality, size and car parking, the congestion issues in the town, as

well as the fact that development tends to be more viable in out-of-town locations. Lack of

supply of Grade A stock in the town centre, rather than lack of demand, is key to explaining

the apparent westward movement by occupiers in recent years.

• Potential exists for high quality multi-let office buildings within the town centre, similar to

Chatsworth House, which has proved popular. However, the quality of town centre supply

will be difficult to address given the lack of sites and the costs of development. There is likely

to be continued demand for space in out-of-town locations, especially if new development is

not forthcoming in town centre or edge-of-town locations, and if the issues of town centre car

parking persist.

• Our analysis has revealed that the amount of available office space on the market in

Worthing is not considerable, equating to 14% of total stock, or just 8% where The Warren at

Hill Barn Lane (a large single occupier building) is excluded. This equates to a supply of

between 3-5 years based on historic take-up levels.

• In terms of the current mismatch between supply and demand, the office market is generally

in balance, although there is an apparent under-supply of available units of 5,000-10,000

square feet, and a couple of requirements for circa 15,000 square feet. The former Lloyds

Building at The Causeway and The Warren, Hill Barn Lane, if ‘broken-up’ and offered to the

market for multi-tenanted occupation could help to address this mismatch.


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• Grade C office stock is generally oversupplied and not attractive to the market, and within the

town centre there is cluster of poor quality suites and buildings at Chapel Road and Warwick

Street, which needs to be reconsidered in terms of its long term role, especially with the

significant costs of refurbishment.

• The industrial market is holding up well in the recession, although landlords have been under

pressure to reduce rental values to secure lettings to avoid Empty Rates. Demand is also

characterised by local and sub-regional occupiers seeking expansion space. Demand is

focused at the smaller end of the market, with units of less than 5,000 square feet in

demand, followed by some demand for units between 5,000-10,000 square feet.

Transactional activity has also been focused on Grade A stock at locations such as

Downlands Business Park and Northbrook Business Park. In the case of Northbrook

Business Park, the availability of new freehold units was key to its success, and agents

consider that there is scope for additional such schemes in Worthing when the market

returns.

• Our analysis has revealed that the amount of industrial stock on the market in Worthing is

not large at 8% of the total stock. This equates to a supply of 2.5 years based on historic

take-up level, which is considered low in a stable market.

• In terms of the current mismatch between industrial supply and demand, there seems to be a

general undersupply of Grade A stock, with historic take-up significantly above the current

available stock, with Grade B more or less in balance, and an over-provision of Grade C

stock. There also appears to be a dearth of units to cater for demand between 5,000-10,000

square feet and to a less extent between 20,000-50,000 square feet.

• Due to the general low industrial vacancy rate, and lack of Grade A stock, there should be

scope for renewed development activity for new space when the market returns.


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6.0 Forecasting Employment Demand and Floorspace

In addition to market demand, it is important to assess the higher level, long term economic demand

for floorspace arising from the growth in the working population. Within this section of the report, an

assessment of latest employment forecasts produced by Experian has been undertaken, which

paints a more realistic picture of future floorspace demand than previous forecasts that were

prepared prior to the economic downturn.

The economic forecasts are also supplemented with an assessment of historic completions for

industrial uses only, as unlike offices, industrial demand tends to arise from increases in productivity

(through technological advances in machinery, ICT etc.), which at the same time can lead to job

losses.

6.1.1 The Use of Demand Based Modelling

There are essentially two approaches to assessing the future requirement for employment

floorspace, a supply-side approach and a demand-side approach. The most commonly employed

and arguably the most reliable approach is demand-based modelling. This type of modelling relies on

understanding of the macroeconomic context, exploring past trends and applying key economic

relationships. In following a demand-side approach based on econometric modelling, it should be

noted that there exist a number of potential issues relating to the forecasts which are not directly

addressed by that methodology. They are as follows:

• Firstly, certain sectors of the local economy may outperform the constraints of a modelling

system which is reliant on historic performance and constrained by projections at the regional

and national levels. Should the Borough undergo a structural shift – for example, if it were to

attract inward investment in sectors not previously well represented in the area – there would be

no allowance for this within the forecast.

• Secondly, and conversely, that some areas of the local economy may underperform the same

system. Thus there is the potential that there may be job losses or weaker growth in some

sectors, and business space which may become redundant as a result may not necessarily be fit

for the purpose of accommodating those areas of the local economy which are in need of


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additional space. Nonetheless, the potential for weaker performance should be borne in mind

when reviewing the quantitative outputs.

• Finally, that the figures shown relate to an increase in net employment only and do not account

for additional space which may result from employment turnover and churn during the same

period. Clearly Worthing needs to ensure it can provide and cater for this type of demand in

addition to net employment increases in order to retain existing indigenous companies with

active requirements for new or more modern space. Thus, in the reverse of the preceding point,

the potential for additional demand derived from existing employment (rather than simply net

growth) should also be borne in mind when reviewing the quantitative outputs.

It should also be noted that these projections are quantitative not qualitative and thus take no

account of market demand. It therefore does not incorporate any analysis of the current quality or

availability of existing floorspace relative to market requirements, or any potential changes in market

demand that may result from improvements in real estate provision in the area.

This latter issue is particularly relevant given the points raised in Chapter Five with regard to the

mismatch between current available space and demand trends. For example, if current commercial

property in the area was unsuitable for modern requirements and this provision was improved in the

coming years, this might attract new employers to the area and thereby generate additional demand

for floorspace in the latter part of the forecast period. This would apply equally to both the office and

industrial sectors. Local employment based forecasts are based on the macro assumptions and, in

Worthing’s case, do not make allowances for large inward investment projects in housing (e.g

Shoreham Harbour Growth Point) or demand from new and emerging industries.

6.1.2 Forecast Employment Trends Chapter Two has addressed the current structure of the economy and employment profile in

Worthing. This section assesses the outlook for employment across the Borough together with the

wider employment trends at the regional level to provide context. Given the pronounced downturn in

the UK economy, the forecasts were specially commissioned to ensure that the outlook is based on

trends which are up-to-date.

We have adopted Experian Business Strategies’ (EBS) bespoke forecasts as a baseline estimate of

projected employment changes in Worthing between 2006 and 2026, a period which coincides with


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the Regional Spatial Strategy for the South East and Worthing Borough Council’s emerging Core

Strategy. While we wish to reflect Worthing’s changing structure and a broad analysis of potential

baseline growth, it should be borne in mind that the principal objective of this study is not detailed

economic analysis and therefore the EBS figures shown in this report are indicative only.

In terms of the absolute number of jobs, total FTE employment in Worthing is projected by EBS to

increase by 3,494 over the period 2006 to 2016, and 5,679 over the total forecast timeframe of 2006

to 2026. This represents a net increase in employment and does not account for churn in

employment during the forecast period.

Figure 6.1: Historic and forecast FTE employment in Worthing Borough

For each of the broad SIC industrial classifications, Table 6.1 shows the regional context regarding

the outlook for the various sectors in Worthing set alongside that of the wider South East region, and

Table 6.2 shows the number of additional FTE jobs expected over the period 2006 to 2026 in

Worthing Borough.

30

35

40

45

50

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

FTE

empl

oym

ent 0

00s

FORECAST


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Table 6.1: Employment Growth in Worthing and the South East region

Share of Employment % growth in employment

Worthing South East Worthing South East

Forecast FTE Employment Trends 2006 2026 2006 2026

2006 - 2016

2006 - 2026

2006 - 2016

2006 - 2026

Agriculture, Forestry & Fishing 0.0 0.0 1.7 1.3 100.0 100.0 -4.7 -16.5 Mining & Utilities 1.3 0.4 0.5 0.2 -49.1 -60.4 -27.3 -50.9 - Metals, Minerals & Chemicals 3.6 3.3 2.1 1.2 3.3 3.3 -28.3 -40.0 - Engineering 2.8 2.2 3.7 2.0 5.1 -10.2 -23.5 -38.0 - Other Manufacturing 2.4 1.9 3.9 2.7 -8.8 -12.7 -16.6 -22.3 All Manufacturing 8.9 7.4 9.7 5.9 0.1 -0.3 -1.4 -1.9 Construction 6.3 5.8 8.1 6.8 12.1 4.5 -3.0 -7.2 Distribution, Hotels & Catering 18.5 18.6 20.9 22.4 11.1 14.4 7.0 19.0 Transport & Communications 3.1 3.0 6.5 6.1 6.2 7.7 -0.7 3.9 Financial & Business Services 24.8 23.8 24.6 25.4 4.9 9.8 5.7 14.9 Public Admin, Education & Health 30.7 35.9 21.2 25.2 18.9 32.9 17.6 32.2 Other Services 6.4 5.1 6.7 6.6 -13.6 -9.8 2.9 10.4 Total FTE employment growth 100.0 100.0 100 100.0 8.4 13.6 4.2 11.2 Source: Experian Business Strategies

The forecasts indicate that employment growth in Worthing will significantly outperform the South

East region between 2006 and 2016, with total FTE employment growth of 8.4% in Worthing

compared with 4.2% in the South East. Over the entire period 2006 to 2026, total employment growth

in Worthing is forecast at 13.6% compared with 11.2% in the South East. The most striking point to

note is that, despite the recessionary period and the obvious consequences this will have on short-

term employment levels, FTE employment in Worthing is expected to recover relatively strongly after

the recession.

This robust forecast will be driven by strong growth in the public sector, which already accounts for a

significant 30.7% of Worthing’s workforce, compared with 21.2% in the South East. Employment in

public administration, education and health is forecast to increase by circa 33% between 2006 and

2026 (4,200 net additional jobs). According to EBS, growth within this broad category will be largely

driven by the health sector with a substantial 49% employment growth over the period and in line

with the South East as a whole (45%).

Across the manufacturing sectors as whole, between 2006 and 2026 employment in Worthing is

forecast to reduce by only -5.1% (loss of 200 jobs). This is in clear contrast with the wider South East

region, where manufacturing employment is forecast to reduce by -32.2% over the period (Within


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manufacturing, the greatest divergence between the Worthing and the wider South East is in metals,

minerals and chemicals sector which, in Worthing, is forecast to experience positive, albeit muted

FTE employment growth over the period to 2026 of 3.3%, compared with a reduction of 40% in the

wider South East region.

Over the last few decades the UK economy has restructured away from industrial activities and

towards services. Financial and Business Services (FBS) has been a key area of UK employment

growth and has been the driving force behind the structural change in the economy away from

manufacturing to business services. Looking at the forecasts, however, a pattern of much more

muted growth is expected over the coming 20 years. FBS employment in Worthing is forecast to

increase by 9.8% between 2006 and 2026 (920 net additional jobs), which is below the South East

region’s growth of 14.9% over the period.

Table 6.2: Forecast Increase in Net Additional FTE employment by broad SIC category for Worthing Borough

Net additional FTE Employment

Broad SIC 2006 FTE

Jobs 2006 - 2016

2016 - 2026 2006 - 2026

Agriculture, Forestry & Fishing 10 10 0 10 Mining & Utilities 530 -260 -60 -320 Metals, Minerals & Chemicals 1,510 50 0 50 Engineering 1,180 60 -180 -120 Other Manufacturing 1,020 -90 -40 -130 Construction 2,640 320 -200 120 Distribution, Hotels & Catering 7,690 850 260 1,110 Transport & Communications 1,300 80 20 100 Financial & Business Services 10,320 415 505 920 Public Administration, Education & Health 12,780 2,420 1,780 4,200

Other Services 2,660 -361 100 -261

Total FTE employment 41,640 3,494 2,185 5,679 Source: Experian Business Strategies

6.1.3 Quantifying Future Employment Floorspace Requirements in Worthing

Certain assumptions have been utilised in order to convert the employment forecasts outlined above

into floorspace requirements. These assumptions are broadly based on the ODPM’s guidance which

relates particular ‘proxy’ employment sectors to key property use classes, and our precise approach

is set out in Appendix 3. It is important to stress, however, that the use of ‘proxy’ sectors to model


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floorspace requirements is at best indicative, particularly with regard to ascertaining office-based (or

B1) employment. For example, while an obvious link exists between office demand and growth in

financial and business services, there will be office occupiers who are engaged in other key sectors,

namely education and public administration.

Table 6.3 below provides the estimates in net additional floorspace over the plan period 2006 to

2026, and an interim figure for the 10 period 2006 to 2016. The conversion from net additional jobs to

net additional floorspace is derived from an assumption of typical employment densities for particular

use classes. A number of studies have examined this issue and put forward their own similar

estimates of employment densities, and this report utilises the floorspace ratios provided by English

Partnerships in their Guide to Employment Densities, 2001.

Table 6.3: Net Additional Floorspace Requirements

Use Net additional FTE

employment Floorspace

Ratio

Net additional floorspace requirement

(sq ft gross)

2006 - 2016

2006 - 2026

Gross sq ft per FTE

2006 - 2016

2006 – 2026

B1 - Offices 621 1,314 205 127,292 269,357 B2 - General Industrial 20 -200 340 6,680 -66,800 B8 - Storage & Distribution 32 -18 540 17,280 -9,720 All use classes 673 1,096 - 151,252 192,837

The forecasts suggest that future demand for net additional floorspace in Worthing will be driven by

the office-based employment sectors, with a net additional B1 floorspace requirement of circa

270,000 sq ft over the plan period 2006 to 2026. The recession’s impact on office employment, and

therefore B1 office demand, is accounted for in these forecasts with a lower level of growth expected

over the first ten years (2006 – 2016) than the latter (2016 – 2026). The forecast net growth in B1

floorspace would represent a 14% increase in the total office supply in the Borough.

Yeoman Gate is the most significant office scheme built since 2006, which comprised 32,000 square

feet in total. Therefore the current B1 office floorspace requirement is likely to be circa 240,000

square feet up to 2026.

In contrast to the expansive trend indicated for B1 use, the forecast points to a net loss of both B2

and B8 floorspace over the period 2006 to 2026. However, despite the recession, marginal FTE

employment growth to 2016 leads to a small positive requirement of 23,690 square feet net


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additional industrial floorspace over the period. Over the longer period to 2026, a net loss of industrial

floorspace is forecast for the Borough although this is again relatively marginal, at -76,520 square

feet. Compared with the South East region as a whole, this net loss reflect expectations for relatively

robust levels of manufacturing and distribution related employment in the Borough. Again, to provide

context, the combined net loss of B2 and B8 floorspace equates to a reduction of just 3% of total

industrial stock in the Borough.

6.2 Completions

In addition to the economic forecasts, it is also important to consider the trends in the completion of

commercial property in recent years, especially for industrial floorspace. This is because, even

though the number of jobs within manufacturing and storage and distribution activities maybe

declining, advances in technology and productivity mean that companies will want to improve,

upgrade and possibly expand their premises within Worthing.

This future demand will not be apparent through an analysis of purely employment forecasts.

Therefore, we have taken the rate of industrial completions (floorspace developed and occupied,

including changes of use) over a circa 23 year period, as a proxy for the demand for new industrial

floorspace within Worthing.

Table 6.4 shows that over the period 1985 to March 2008 a total of 1.1 million square feet of

industrial (B1b/c, B2 and B8) floorspace was completed. This equates to an average of 47,601

square feet of new industrial floorspace developed per annum. In recent years, from 2004 onwards,

all of this new floorspace was developed on ‘previously developed land’, indicating that parts of the

industrial estate are being continually upgraded, with poor quality ‘Grade C’ and derelict stock

replaced.

Whilst we acknowledge that a certain proportion of the completions will be due to changes of use

from other employment use classes, we believe that the total of circa 48,000 square feet gives a

realistic maximum annual target to attempt to meet, especially as this total takes into account several

property cycles, including the last major recession of the early 1990s.

Over the lifetime of the development period, this equates to up to 780,000 square feet of new

floorspace.


110

Table 6.4 Industrial Completions (B1b/c, B2 and B8 uses)

Year Floorspace

Sq.m. Floorspace

Sq.ft. 1985 10800 116250 1986 4400 47361 1987 3000 32292 1988 5160 55542 1989 5010 53927 1990 1950 20990 1991 1190 12809 1992 3420 36813 1993 460 4951 1994 1480 15931 1995 15970 171899 1996 190 2045 1997 0 0 1998* (see notes below) (see notes below) 1999 6420 69104 2000 1209 13014 2001 12159 130878 2002 (see notes below) (see notes below) 2003** 7980 85896 2004/2005*** 4372 47060 2005/2006 723 7782 2006/2007 16092 173213 2007/2008 832 8956 Total 102,817 1,106,712 Number of Years 23.25 23.25 Average per Annum 4,422 47,601

Source: West Sussex County Council/Worthing Borough Council * 1998 completions included within 1999 total ** 2002 completions included within 2003 total *** The data for Jan.-Mar. 2004 included within 2004/2005 total

In thinking of the quantum of industrial floorspace required in future years up to 2026 (from October

2009, it is a total of 16.25 years), it is important to consider how much poor quality ‘Grade C/D’ stock

currently exists, as this should be the focus for new development before any ‘greenfield’ opportunities

are considered.

Table 6.5 reveals the potential shortfall of opportunities within the existing industrial estates to

regenerate the older Grade C/D stock to create new Grade A opportunities. This is an

approximation, as occupiers will have their own requirements for space and location, and a

proportion of Grade C stock is likely to be always available, especially as it provides an important


111

source of ‘cheap’ workspace for local firms. In addition, we have only considered Grade C/D stock,

and there is an argument that a proportion of the current ‘Grade B’ stock will naturally become Grade

C stock up to 2026.

Bearing these issues in mind, the table shows that, if the Council wishes to meet the target of

780,000 square feet from now to 2026, currently there is only 180,000 square feet of Grade C/D

vacant space, which is equivalent to 2.7 years of supply, or 600,000 square feet of Grade C/D stock

in total, which is equivalent to 8 years supply, both of which is well below the 16.25 years to 2026.

Table 6.5: Industrial Completions Vs Grade C/D Stock Floorspace sq.ft. Average Completion Rate per Annum Circa 48,000Quantum of New Space 2009-2026 Circa 780,000 Quantum of Grade C/D stock in total Circa 600,000Quantum of Grade C/D stock vacant Circa 180,000 Potential Long Term Gap 2009-20026 Circa 180,000

Source: Worthing Borough Council/Knight Frank

The table indicates that there is a need to plan for up to circa 180,000 square feet of industrial

floorspace up to 2026 through the allocation of vacant land.

The potential sites to deliver this floorspace will be assessed in the next Chapter.


• The use of economic forecasting and other indicators of future employment floorspace

requirements always need to be treated with caution, due to the timing and nature of the

forecasts. They should be used as a guide, requiring regular updating.

• The Experian employment forecasts applied for Worthing indicate that growth in the service

sector of circa 4,900 jobs should result in an increased need for additional office stock up to

2026. In addition, the manufacturing sector, and sectors driving demand for warehousing will


112

experience a decline in employment of circa 200 jobs to 2026, and at face value potentially

no additional need for industrial stock.

• The Experian employment forecasts applied for Worthing indicate that growth in the service

sector should result in an increased need for additional office stock up to 2026. In addition,

the manufacturing sector, and sectors driving demand for warehousing will experience a

decline in employment, and at face value potentially no additional need for industrial stock.

• The amount of office floorspace required to be delivered in Worthing up to 2026 is

anticipated to be circa 240,000 square feet, with the completion of Yeoman Gate taken into

account.

• However, for industrial and warehousing, we also consider it important to assess other

indicators of future floorspace demand – i.e. completions. The analysis of data held by the

Borough Council indicates that where the stock of Grade C/D premises can be renewed over

the period up to 2026, there is still likely to be a shortfall of circa 180,000 square feet, which

will need to be developed on vacant land.


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7.0 Appraisal of Key Sites

7.1 Introduction

This section of the report assesses the key employment sites that could help to deliver employment

floorspace over the next 15 or so years up to 2026. Five sites have been appraised within the

Borough, which are:

• Land adjacent to Martlets Way;

• Northbrook College, Durrington Campus;

• The Warren, Hill Barn Lane;

• Decoy Farm, East Worthing Industrial Estate; and

• The Former Lloyds TSB Building, The Causeway.

The assessment of each site provides a ‘high level’ market overview of the physical and planning

issues pertaining to that site, as well as Knight Frank’s opinion on the viability and market

attractiveness of developing employment floorspace at each location.

7.2 Site Appraisals

7.2.1 Land Adjacent to Martlets Way

Former Sewage Treatment Works Entrance to Former Sewage Treatment Works


114

Location and Description

The site is located to the east of the existing Martlets Way Industrial Estate (which forms part of the

Goring Business Park), to the west of the Inland Revenue offices at Barrington Road, to the north by

Holm Oak Business Centre and the railway line, and to the south by housing at Juno Close and

Barrington Road.

The site extends to circa 4.1 hectares and comprises three different ownerships.

We understand that B S Ventures owns the former Southern Water sewage treatment works, which

extends to 1.25 hectares, and is located immediately to the east of Martlets Way, and to the south of

Holm Oak Business Centre. The original access to the site is via Martlets Way, and the site has

been cleared of the waste water apparatus.

We understand that National Grid retain ownership of the former gas holder site, which is located to

the east of the former sewage treatment works, and abuts the railway line to the north. The site is

1.7 hectares, and the original access to the site was via Barrington Road. The former gas holder has

been demolished and removed from the site.

We understand that Mapeley Estate Ltd own the site between the former gas holder site and

Barrington Road, which appears to be open space, and was formerly in the ownership of the Inland

Revenue, with no obvious former use. The site is 1.1 hectares, and access to the site is via a

pathway from Barrington Road.

The map below in Figure 7.1 shows the extent of the three land parcels.


115

Figure 7.1: Land Adjacent to Martlets Way


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Planning Status

The former sewage treatment works and former gas holder site was originally allocated for B1

employment uses within the Worthing Borough Local Plan 2003, with the site to the south of the gas

holder site allocated for housing. Employment development was on the proviso that highway

improvements would be required at Goring Way, in the form of a dedicated right turn lane into

Mulberry Lane, to allow the free flow of traffic along this route.

Several commercial schemes have been proposed for the former sewage treatment works, following

the development of social housing at Juno Close by the previous owner Osborne. These commercial

schemes include a full planning consent granted in 2003 for B1 uses. But this was never

implemented by the then applicant Wyncon Developments (who had acquired the site from

Osborne), and subsequently the site was acquired by B S Ventures.

We understand that B S Ventures withdrew a full planning application for 4 new B1/B8 buildings,

providing circa 70,000 square feet in 28 units in 2007, due principally to not being able to secure

access rights to Woods Way, and having to implement highways improvements on other land not

within its ownership. The proposed development would have been built speculatively, which

demonstrates that at this time, there was confidence in the local market for a small unit scheme in

this location.

Within the Worthing Borough Revised Core Strategy, June 2009 reference is made to both the

former gas holder site and the parcel of open space immediately to the south as being sites where

residential use would be acceptable, following the Strategic Housing and Land Availability

Assessment (SHLAA) undertaken by the Council. Access arrangements are an issue for the former

gas holder site, although we understand that National Grid is seeking an agreement with Mapeley

Estates to potentially combine these two sites, to create one housing site. There is also the

possibility that all three landowners (B S Ventures, National Grid and Mapeley) will need to work

collaboratively to find a solution to the access issues pertaining to all three sites.

In addition, the Revised Core Strategy continues to promote employment uses at the former sewage

treatment works, although it does state that current access arrangements via either Martlets Way or

Woods Way are not ideal.


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Physical Site Issues

The former uses the sewage treatment works and gas holder sites, suggests that there could be

potentially some additional costs to developing the site, although the fact that these two sites have

been cleared indicates that this may not be a significant issue.

Access is a major issue for all three sites, as we understand that access rights or land acquisition

would be required at Woods Way and potentially Barrington Road. There are also off-site access

works at Goring Road that would need to be implemented, particularly for new industrial uses.

There is a line of mature trees that separates the former gas holder site from the former sewage

treatment works. There could be TPOs attached to these trees, as well as ecological issues to

overcome. To date, we have not had sight of any environmental report on either ecology or ground

conditions, so cannot comment further.

The neighbouring residential uses also need to be taken into consideration in the planning of the

three sites, especially the properties at Juno Close that back onto the former sewage treatment

works. This may require a suitable screening solution.

Market Attractiveness and Site Viability

Goring Business Park continues to be a popular location for business activity. This is demonstrated

by the recent conversion of Holm Oak Business Centre and refurbished Aviation House, although it is

recognised that some investment in other parts of the estate are required.

The site is unlikely to attract a major investor due to weak visibility, prominence and poor access

arrangements, but would rather appeal to local occupiers seeking small scale units of up to 5,000

square feet for B1 light industrial and B8 small storage activities. This reflects the previous scheme

proposed by B S Ventures.

Our analysis of demand, as set out in the previous chapter indicates that Worthing is undersupplied

in terms of new Grade A industrial stock to meet prevailing take-up levels, and there is also a need to

deliver in the region of 180,000 square feet of new space.


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Development at achievable rental values of £7.50 per sq.ft. in the current market is likely to be

marginal, and any ‘abnormal’ costs of development, such as acquiring land for access, or paying for

road improvements to Goring Road, is likely to impact significantly on the viability of the scheme,

potentially making it unviable.

Conclusions

Given the planning history of the site, the physical issues, the land ownership status, and the general

aspiration of all stakeholders to find a collective solution this site, it appears prudent to promote a

mixed-use development. Otherwise, there is a distinct possibility that all three sites may be stymied

from development, given the access issues.

For the former gas holder site and adjacent open space site, the rationale for residential use appears

to be stronger than employment uses, given the Council’s recognition of the potential of both sites in

the SHLAA report, and the demarcation from the former sewage treatment works with its enclosure

of mature trees. The planning history of the former sewage treatment works indicates that industrial

development should be viable in a stable market, where the access arrangements can be addressed.

It is recommended that a masterplan is drawn up for the whole site (all three land parcels) that

considers the access solutions and the position and quantum of land uses. This should be

undertaken by the landowners in association with the Borough Council and County Highways.

The introduction of residential into the mixed-use scheme, should help to fund the necessary

highways improvements for the benefit of all three sites.

Until the masterplanning work is undertaken, it is difficult to estimate what level of industrial

development will be acceptable in highways terms. However, a target of 40,000-50,000 square feet

seems realistic, given the potential need for an access route from the former sewage treatment

works site into the gas holder/open space land.


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7.2.2 Northbrook College, Durrington Campus

Northbrook College, Durrington Campus Surface Car Park at Northbrook College


Northbrook College have two campuses within Worthing, one at Broadwater Road, and the other at

Durrington, plus offices at Union Place. The Durrington campus is located adjacent to the

Littlehampton Road (A2032), with very good accessibility to the A27 going west.

The site is bounded to the west by Titnore Lane and open fields beyond, to the north by Lower

Northbrook Farm (where a new hospice is being developed on part of the site), to the south by

Littlehampton Road, and to the west by Yeoman Way, which includes the new Yeoman Gate office

park development, as well as the offices for Equiniti and Southern Water.

The campus extends to 9.9 hectares and includes the cluster of college buildings, including

Northbrook Theatre, plus large areas of surface car parking, formal playing fields, and areas of

landscaping, trees and informal open space.

Northbrook College is currently reviewing its property portfolio due to an unsuccessful bid to the LSC

for funding, with both Broadwater and Durrington campuses being re-assessed.

The extent of the Durrington campus is set out in Figure 7.2 below.


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Figure 7.2: Northbrook College, Durrington Campus


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Planning Status

The Durrington campus was not originally allocated within the Worthing Borough Local Plan 2003 for

the development of alternative uses, other than for the expansion of educational uses. Within this

policy, no development was permissible beyond the western edge of the building edge, in order to

protect the open aspect of Titnore Lane. The trees and shrubs in the north eastern corner of the site

were also protected from development.

In the current Revised Core Strategy, the Durrington campus is being promoted for a mixed use

development of housing and employment uses to help finance the development of a new campus at

Broadwater Road (which has planning consent), including the relocation of educational facilities from

Durrington campus.

The lack of LSC funding to deliver the new Broadwater campus, means that Northbrook College are

reviewing the opportunities again at both campuses.

Physical Site Issues

The Durrington campus is an out-of-town site with no obvious physical constraints from former uses.

We understand that there is a sewer pipe that runs along the edge of the eastern boundary of the site

that may restrict development in close proximity to it.

The openness of the site, and its proximity to the rural nature of the edge of the town is likely to mean

that in design terms any development would need to be of an appropriate scale and density that is

sympathetic to its surroundings.

Drainage and surface run-off would also need to be addressed, with the presence of the Ferring Rife

water course to the south of the site.


In the scenario, where land at Northbrook College is released for development, we believe that it

would be attractive to the both the office and industrial occupier market, due to its very good

accessibility to the A27, and the excellent prominence and visibility along Littlehampton Road.


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Our demand analysis has revealed that there is an undersupply of Grade A industrial stock within the

Borough to cater for expected demand, and in the case of offices, there is likely to be some

additional requirements from both town centre occupiers and out-of-town occupiers seeking to either

upgrade or acquire their own freehold offices. We envisage that a Phase II to Yeoman Gate should

be feasible in the next 10-15 years, once the market returns and available space on the market is

absorbed.

Development at this location should be viable in a stable market, given the ‘greenfield’ nature of the

majority of land, with no significant abnormal costs, as well as the opportunity to develop out the

commercial uses as part of a wider residential scheme.

Within the context of Worthing Borough as a whole, the Durrington campus probably represents the

most attractive employment opportunity.

In the scenario, where only part of the Durrington campus is released for development, there may

also be an opportunity to link new employment uses more strongly to the College, potentially through

the development of an incubator on site. This would provide space and support services to students

seeking to set up in business, as well as more conventional business space located around it. The

incubator is likely to delivered through a joint venture partnership between the College and a private

incubator operator.

In the scenario, where the Broadwater campus is released for development, and educational facilities

are relocated to Durrington campus, we believe that land fronting Broadwater Road would also be an

attractive business location.

Conclusions

There remain a number of scenarios for the two campuses owned by Northbrook College, and

therefore some flexibility is required within the LDF to enable these scenarios to be played out over

time.

In market terms, both campuses are appropriate and attractive for employment uses, especially the

Durrington campus, which provides an opportunity to extend the existing Yeoman Gate development,

as well as the scope to deliver both industrial and office floorspace.


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In a scenario, where the Durrington campus was released for development, a scheme split 50%:50%

between residential and employment uses could yield approximately 200,000 square feet of

employment space at a site coverage for the buildings of 40%.

In addition, incubation space linked to the College would enhance innovation and entrepreneurship in

the Borough, helping to develop the economy from the ‘bottom-up’.

7.2.3 The Warren, Hill Barn Lane

The Warren southern elevation The Warren eastern elevation


The Warren is a self contained office complex owned by Aviva (formerly know as Norwich Union)

located at the intersection of the A24/A27 north of the town centre.

The site is a triangular-shaped site, with residential streets to the west and to the north west, Hill

Barn golf club to the north east, Hill Barn and Rotary recreation grounds to the east, and the A24/A27

Grove Lodge roundabout to the south.

The site extends to 8.7 hectares and comprises 121,500 square feet in total, including the main three

storey office complex, training centre, ‘C Block’, print/post room, and sports pavilion, which includes a

swimming pool. There are 609 car parking spaces on site.

The property is currently on the market on both a freehold and leasehold basis, as Aviva rationalise

its operations within Worthing. The extent of The Warren is set out in Figure 7.3 below.


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Figure 7.3: The Warren, Hill Barn Lane


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Planning Status

The Worthing Borough Local Plan originally allocated two sites within The Warren site for additional

B1 office development, subject to a landscape assessment, a transport assessment and other

planning requirements.

The first site allocation was adjacent to the existing southern elevation of the main office building,

and the second allocation was located at the rear of the surface car park abutting Hill Barn golf club,

which lies within the South Downs Area of Outstanding Natural Beauty (AONB).

Outline planning consent was formerly granted on the two sites for office development in 1997 to

increase the quantum of offices at The Warren to circa 240,000 square feet with up to 1,066 car

parking spaces. This consent was never implemented.

We understand that there is a s.106 agreement on the land that limits the use of the site for offices

only, and restricts the areas that can be developed.

The mature parkland to the south of the main building is also identified as an Environmental Area of

Special Character within the Local Plan, and this area also contains several mature trees, some of

which have Tree Preservation Orders (TPOs) on them.

Physical Sites Issues

Due to the site’s sensitive location, the key physical site constraint is the high quality environmental

setting, with the protected landscaped area to the south of the site, the AONB to the north and the

two recreation grounds to the east.

In addition, the road congestion issues along the A24/A27 creates a ‘pinchpoint’ at Grove Lodge

roundabout, which makes the intensification of use on the site more difficult to justify in planning

terms today compared to when outline consent was granted in 1997. A ‘greener’ transport solution

would need to be found to maximise the potential of the site.

There may also be issues with archaeology on the site, and these would require further investigation.


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The Warren has been developed over time by a well established occupier Aviva, which has been

located in Worthing for many years.

Demand from a single occupier seeking to take the office accommodation in its present condition, is

likely to be very limited, both within Worthing and beyond. Unfortunately, Worthing is not considered

a prime location for inward investment, compared to more accessible locations such as Reading,

Heathrow, Gatwick/Crawley or North Kent.

Therefore, without a single occupier, the other potential market scenario would be for an investment

company to purchase the building, and convert it for multi occupation, providing a range of suites for

the local market. This model has been successfully achieved in Worthing at Columbia House, the

former Nissan office building, which was purchased and refurbished originally by Dawnay Day,

before it was sold on recently to F&C. However, Columbia House is only 46,000 square feet, and

The Warren is nearly three times the size.

In the current weak property market, investors may be reluctant to undertake a costly conversion

programme without the realisation of significant take-up and rental growth.

Therefore, an alternative scenario may well be to demolish the existing office building and construct a

series of stand-alone smaller office buildings, which could take a similar form to the recently

developed Yeoman Gate scheme. However, the demolition costs may make redevelopment

prohibitive, and some form of enabling development may be required to deliver new office space.

There are different forms of enabling development that could help to deliver new office floorspace

including employment generating uses, such as care home facilities, hotels and education, as well as

residential. At this stage it should be noted that no development appraisals have been undertaken to

test the viability of mixed-use schemes or 100% office schemes on the site.

In terms of care homes, the site is likely to be too large for a single operator, although there may be

interest from operators for part of the site. The care home market in Worthing is strong and is

becoming a key employer within the town. However, a new care home facility on part of the site may

not fit with other potential uses, such as offices, hotel or educational uses in terms of perception,

hours of operation, noise etc.


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In terms of hotels, the Worthing market is not considered a prime tourist or business destination, and

therefore the market for additional hotels in the town is likely to be limited to budget hotel operators

seeking, say a 60-80 bedroom hotel. These types of operators would not require the whole site, and

therefore the hotel would need to be a new build as part of a mixed-use scheme.

In terms of educational uses, the site could be a suitable alternative location for Northbrook College,

or a combined facility with Worthing College, subject to funding, or the release of other sites to raise

capital. Therefore, there is the potential for educational uses to occupy all of the site or form part of a

mixed-use solution. Educational uses appear to be an appropriate alternative use for the whole site,

given the nature of the existing buildings, the landscaped grounds, sporting facilities and car parking.

The college would also be a key employer, which relates more closely with the existing office

consent.

Residential uses would be attractive in this location, especially on land at the northern end of the site

overlooking the golf course. Residential would be a high value enabling use to help deliver the new

office floorspace within the site.

In formulating suitable mixed use options for the site, the impact of development on the road system

is likely to be a major issue that will require innovative solutions, especially given the amount of car

parking current available on site.

Conclusions

Where a comprehensive refurbishment of the existing building for B1 offices is not financially viable,

a mixed-use office-led solution should be considered with, in the first instance other employment

generated uses, such as a hotel, education and care home facilities. The mix of uses will need to be

tested in planning and financial terms. Residential uses should only be considered where there is a

significant viability gap, which acts as a long term constraint to delivering office uses on the site.


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7.2.4 Decoy Farm, East Worthing Industrial Estate

Decoy Farm from Willowbrook Road


Decoy Farm is a former landfill site at the edge of Worthing Borough, which is owned by Worthing

Borough Council. The site currently accommodates the West Sussex County Council household

recycling centre. This facility is set to be relocated further into the site to the east, along the frontage

with Teville Stream/Willowbrook Road and expanded, with the County Council acquiring land from

the Borough Council to develop the new facility (which is circa 1.5 hectares).

The site extends to 7.7 hectares and is bounded on the western and southern sides by the East

Worthing Industrial Estate, and to the northern and eastern sides by farmland, which form the

Worthing-Lancing Strategic Gap.

The extent of Decoy Farm is set out in Figure 7.4 below.


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Figure 7.4: Decoy Farm, East Worthing Industrial Estate


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Planning Status

The site was not allocated for employment uses within the Worthing Borough Local Plan 2003,

although part of the site is identified for the alignment of the East Worthing Access Road, which

provides a more direct route between the East Worthing Industrial Estate and the A27.

Within the Revised Worthing Borough Core Strategy, June 2009 the site is proposed for employment

uses within B1, B2 and B8 uses, although the draft policy does indicate that the construction of the

East Worthing Access Road (EWAR) is uncertain. Indeed, we understand that there are no plans to

include the EWAR within either Adur or Worthing Borough’s Core Strategy.

Physical Sites Issues

The site’s previous use for domestic landfill provides a major physical constraint to site development.

The level of landfill coupled with the sensitive nature of the open land to the east, and Teville Stream

at its southern boundary, indicates that a comprehensive removal of the landfill waste may be

uneconomic and environmentally undesirable (i.e. it may be better to leave it in-situ). However, to

date, there have not been any detailed investigations of the ground conditions within the site to

comment further on this matter.

Flooding may also be an issue with the presence of Teville Stream, and this may require mitigation

measures where new development is proposed.

Without the East Worthing Access Road, it is also unclear as to whether the existing road network in

Worthing would be able to cope with a significant increase in commercial movements to and from the

site. To date, no transport assessment has been undertaken without the EWAR to assess these

issues.


East Worthing Industrial Estate is the largest industrial area in the Borough with a mix of small,

medium and large units.


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Our demand analysis has revealed a general undersupply of industrial premises in Worthing to cater

for historic take-up levels, and the location of Decoy Farm would be attractive to the occupier market,

with the capability of providing a range of industrial accommodation, including large units.

However, the commercial viability of developing out Decoy Farm is questionable given the physical

constraints on the site, especially the presence of landfill. It may be uneconomic to develop an

industrial scheme on the site where the comprehensive removal of the landfill waste is required.

Alternatively, building on top of the spoil and providing a suitable venting system to channel the

release of methane and other gases from the decomposing landfill would significant increase build

costs, and again this may make development unviable.

There may be an opportunity to develop more open storage uses on the site, that do not require

significant investment in buildings and venting systems, such as additional ‘bad neighbour’ uses to

complement the new recycling centre that will be developed by the County Council.

Conclusions

Due to the issues pertaining to the site and the uncertainty over the delivery of the East Worthing

Access Road within the next 10-15 years, it is our opinion that Decoy Farm is more likely to be a

location for open storage of ‘bad neighbour’ uses that complement the new County Council waste

facility, and that require less built form on the site to help reduce the costs of development.

In order to test whether there is wider interest in the site, the Borough Council could undertake a

marketing exercise for the land to establish whether there is any developer or large occupier interest

in developing out the site for a conventional industrial scheme, given its constraints.


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7.2.5 The Former Lloyds TSB Building, The Causeway

Former Lloyds TSB Building


The former Lloyds TSB Registrars building is located at The Causeway at Goring-by-Sea adjacent to

Durrington train station and was built in the late 1960s. The building is split into two parts with a two

storey banking hall and nine storey administration tower block. The two parts are linked at ground

floor.

The building is currently vacant and as a whole extends to circa 63,000 square feet plus 295 car

parking space within a multi storey car park (although a number of these spaces are allocated for

other adjacent occupiers and local residents). The building is owned by Cantium Developments.

The tower block is currently being marketed on the basis of a comprehensive refurbishment,

although no works have been undertaken to date.

The building is situated adjacent to The Strand shopping parade, with several large occupiers in

close proximity including West Sussex Primary Care Trust, Inland Revenue, and Worthing College.

The extent of the building is set out in Figure 7.5.


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Figure 7.5: Former Lloyds TSB Building, The Causeway


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Planning Status

The building’s current use is B1 offices, and there was no specific allocation within the Worthing

Borough Local Plan 2003, as it was still occupied at this point.

However, due to the relocation of Equiniti (formerly Lloyds TSB) to Yeoman Way, the Revised Core

Strategy does make reference to the issue of vacant space in this locality within its section on the

‘Role of the Areas of Change’ by stating that “Regeneration of vacant office space at the Strand,

supporting and enhancing the existing mix of uses, securing high quality office space”.

The owner Cantium Developments has submitted several applications over the past two years,

including a scheme to demolish and construct 10,000 square feet of retail and 111 residential units.

This application was withdrawn, principally due to the economic and housing market downturn.

Currently, there is a planning application on the two storey banking hall for change of use of the

ground floor for A1, A2 and A3 uses. We understand the developer is seeking a retail consent in

order to help fund the refurbishment of the tower block and create an active frontage to increase the

marketability of the tower block.


In its current state the building, with its dated exterior and likely sub-standard interior is unlikely to be

attractive to office occupiers.

The building is likely to require comprehensive refurbishment to create a building capable of letting to

multitude of occupiers. The process is similar to what happened at Columbia House, Faraday Close,

where Nissan sold the office building to Dawnay Day, who in turn refurbished the property and let it

out for multi occupation.

The refurbishment of Columbia House indicates that, in a stable market, there is potentially market

demand for good quality refurbished, second hand stock in Worthing with dedicated car parking. The

former Lloyds TSB building has the potential to play a similar role as Columbia House.


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In this scenario, we would expect demand for space at the former Lloyds TSB building to be

generated from Worthing town centre, as well as from businesses seeking a permanent base from

trading at home, and possibly some demand from the Brighton area.

In terms of viability, the example of Columbia House demonstrates that in a stable market a

comprehensive refurbishment of the Lloyds TSB Building is potentially achievable, where the owner

of the building considers it to be a long term investment opportunity, and has the necessary financial

resources to implement the refurbishment works.

Conclusions

If the former Lloyds TSB building is to become an attractive proposition for office occupiers again, it

is likely to require major refurbishment works that are likely to be costly. In a stable market this may

be more achievable.


• The land at Martlets Way has some significant deliverability issues, particularly in relation to

the costs of accessibility and off-site highways works. Due to the separate ownership within

the site, and the nature demarcations, it will be difficult to bring forward the entire site for

employment uses, especially given the development issues. However, there may be an

opportunity to enable the development of new employment uses through residential

development that helps to fund the necessary highways improvements. A masterplan for the

whole site is recommended.

• The plans for upgrading Northbrook College are still in a state of flux, with both the

Durrington and Broadwater Road campuses being assessed in terms of capacity and value

terms. Both sites would be attractive for employment development, especially the Durrington

site, which could deliver both industrial and office floorspace, as an extension to Yeoman

Gate. In addition, the concept of a business incubator should be explored with Northbrook

College as this would provide an important base for innovation and business generation in

the Borough.


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• The Warren, Hill Barn Lane is a large office complex, set within a mature campus, and the

impending vacancy by Aviva will release a significant amount of office stock onto the market.

The site should provide an opportunity to ‘break up’ the building to provide smaller office

units for the market, although the amount of space available on site is unlikely to make it an

attractive proposition for an investor in the current economic climate. As an alternative, a

mixed-use solution for the site should be tested with, in the first instance, other employment-

generating uses, such as hotel, educational and where appropriate care home facilities.

• Decoy Farm, East Worthing Industrial Estate has significant deliverability issues, given the

site’s previous use as a landfill site. West Sussex County Council are set to expand its

household recycling facilities on the site, and without the prospect of the East Worthing

Access Road being constructed in the foreseeable future, the site is more suited to additional

‘bad neighbour’ and open storage uses that avoids costly building works.

• The former Lloyds Building at The Causeway is a late 1960s building with dedicated car

parking spaces. The building has the potential to cater for future office requirements, where

the building is refurbished to a good specification.


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8.0 Conclusions and Policy Recommendations

In this final section of the report, a series of conclusions and policy recommendations are presented,

which are the opinion of Knight Frank based on a comprehensive review of the economic position

and property market in Worthing at this time. Given the timing of the report, during one of the worst

global economic downturns, it will be important for the Borough Council to undertake regular updates

of the economic/employment land position over the lifetime of the development plan up to 2026.

Despite structural weaknesses, concerns about the road infrastructure and the quality of available

stock, the local economy is holding up reasonably well to the current recession. Indeed, forecasts

indicate that total employment growth in Worthing will outperform the SE region. Clearly, the future

provision of employment land will need to reflect this growth projection.

8.1 Policy Approach to Industrial and Warehousing Uses (B1b, B1c, B2, B8

uses)

The conclusions from the analysis of the industrial and warehousing market, clearly show that

Worthing is an important manufacturing base with a cluster of ‘added value’ sectors, including

pharmaceuticals, electronics, instruments, and aerospace. These clusters with supply chain linkages

are a key driver of space within the Worthing industrial market fuelling demand for a range of units,

sometimes large (e.g. Saywell International – 143,000 sq.ft.) but predominantly up to 5,000 square

feet.

The Borough is not a key location for inward investment, nor is it a key distribution location, given its

lack of accessibility to major ports and airports and 180 degree position on the coast. Therefore, in

the future, the market is likely to remain focused on the key manufacturing clusters and local services

(car repairs) and trade counter (building materials) operations.

The balance of supply and demand indicates that there is a general low amount of available stock

within the Borough, and an undersupply of new ‘Grade A’ space to cater for historic take-up rates,

which suggests that when the market returns there is likely to be ‘pent up’ demand for new units.


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Our analysis of historic completions has identified a need to deliver up to 780,000 square feet of

industrial and warehousing floorspace up to 2026. Due to the scarcity of available sites for

development within the Borough, we recognise that a significant proportion of this potential

floorspace (circa 600,000 sq.ft.) is likely to be met through the renewal of poorer quality ‘Grade C’

and derelict premises/sites on the existing industrial estates.

Several under-utilised or vacant premises/sites have been identified within the report for renewal,

either through refurbishment or redevelopment including:

- The large unit fronting Southdownview Road at Broadwater Business Park;

- The cluster of vacant units at Dominion Way West within East Worthing Industrial Estate;

- Former Whiteheads Fabric Building within East Worthing Industrial Estate; and

- The large derelict building at Woods Way, Goring Business Park.

It is recommended that the Borough Council identifies these renewal opportunities and others, and

promotes these either through the Core Strategy or through the new Economic Development

Strategy.

We also do not believe that there is justification for the release of any industrial estate at this time,

with the exception of parts of Station Road, which due to its constrained setting (along a narrow

residential street) is not considered to be a prime industrial area.

In addition to regenerating existing industrial estates, there also appears to be a need to allocate

vacant land to meet the anticipated shortfall (circa 180,000 sq.ft.) in the demand for new space up to

2026.

The current sites identified within the Revised Core Strategy should help to deliver this shortfall,

although there are deliverability issues with each site, in terms of landowner aspirations, accessibility

and ground conditions.

We feel that it is realistic to promote the following sites within the Core Strategy:

- Former sewage treatment works, Martlets Way, Goring Business Park – more suitable for a

small unit scheme given the access issues, and forming part of a wider mixed-use scheme;


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- Land at Northbrook College, Durrington Campus – has the potential to provide a range of

different unit sizes given the size of the site; and

- Decoy Farm, East Worthing Industrial Estate – which is likely to be appropriate for additional

‘bad neighbour’ uses rather than high quality industrial uses, given the constraints of the

landfill on the site.

It may be that over the lifetime of the development plan these deliverability issues can be resolved,

and a greater quantum of industrial space can be developed on these sites.

It will be important for the Borough Council to continue to monitor the industrial completions on an

annual basis, including the renewal of stock within existing estates to assess whether the shortfall of

180,000 square feet changes over time.

8.2 Policy Approach to Offices (B1 uses)

The conclusions from the analysis of the office market clearly shows that the Worthing market is

becoming more reliant on smaller occupiers, as some of its more established businesses down-size

or leave the town. New companies in creative industries, together with the existing supply of

professional and business services are the key drivers of the Worthing office market. The projected

growth of professional and business services, together with new companies in creative industries,

are likely to be important drivers of the Worthing office market.

There may be some demand from occupiers in Brighton seeking cheaper premises, but in the main

Worthing is not considered a prime office location for inward investors within the South East or M25

market.

In recent years, there has been some shift from occupiers westwards, with the refurbished Columbia

House and the new Yeoman Gate scheme providing a good quality specification of office, the

availability of free car parking, and better accessibility to the A27. Also, in the case of Yeoman Gate

the option of freehold purchase was attractive to certain businesses at this time, when finance was

easier to obtain.


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The town centre continues to be a popular location for businesses in Worthing, although there are

particular issues with the cost of car parking, general congestion, and the lack of ‘Grade A’ stock that

act to ‘push’ occupiers to out-of-town locations.

The balance of supply and demand indicates that the amount of available stock is not particularly

large, and is skewed to some degree with the availability of The Warren at Hill Barn Lane. There is

generally a lack of ‘Grade A’ stock within the town centre and a cluster of poorer quality ‘Grade C’

stock in certain parts of the town centre, most notably at Chapel Road which is increasingly

becoming ‘unlettable’.

There is a dearth of available units of 5,000-10,000 square feet, although there are some large office

buildings currently vacant, such as the former Lloyds Building at The Causeway, and The Warren at

Hill Barn Lane, which could be ‘broken up’ to provide floorplates to match this demand.

Our analysis of future office floorspace requirements also indicates economic demand for circa

240,000 square feet of office space up to 2026.

In strict policy terms, the focus for this additional floorspace should be the town centre first, using the

‘sequential approach’ to site selection. However, this is going to be difficult to enforce, as new office

development in the town centre is often unviable, due to the costs of site acquisition/assembly.

A more pragmatic approach is therefore required, with the Borough Council recognising that there is

a need for renewed investment, and that this may be best delivered through major mixed-use

schemes, where there is scope to enable new office stock through the development of higher values

retail and residential uses. The potential redevelopment of key town centre sites, such as the

Guildbourne Centre, may in the future offer opportunities to deliver new office space within the town

centre. The Core Strategy should ensure that B1 uses are included within policies for major town

centre redevelopment schemes.

There should be scope for some of the 240,000 square feet to come forward through mixed-use town

centre schemes, although it is likely that the bulk of this floorspace will be delivered through

refurbishment or potentially the redevelopment of existing vacant buildings, especially key buildings

with significant levels of car parking, such as the former Lloyds TSB Building and The Warren, both

of which are located out-of-town. The two buildings combined have the potential to deliver circa


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190,000 square feet (or 80%) of this total economic demand, which demonstrates the importance of

maximising the use of these two sites for offices where possible.

In promoting other sites for B1 office development, Northbrook College’s Durrington Campus

provides a medium-long term opportunity to deliver an extension to the recently developed Yeoman

Gate scheme. This should help to cater for predominantly future freehold requirements, and could

be of a similar scale to the existing 32,000 square feet scheme. Although, in strict planning policy

terms, this site is not in accordance with the ‘sequential approach’ to site selection, an allocation at

this site should help to guarantee a quantum of future office supply, which otherwise is not

guaranteed within the town centre.

This policy strategy should help to allow some new development in out-of-town locations, without

undermining the future role of the town centre as an office location.

Indeed, there are clusters of stand alone office buildings in the town centre and the wider edge-of-

centre area that warrant a more protective planning policy against change of use. The areas that are

considered important to be retained for office use include:

- Liverpool Terrace/Liverpool Gardens (and parts of Grafton Road, Portland Road and Shelley

Road);

- Chatsworth Road;

- North Street/High Street (including Little High Street and High Street north);

- Railway Approach;

- Crescent Road (northern end); and

- Farncombe Road.

Appendix Four sets out a series of indicative maps showing the geographical extent of these

potential protected office areas.

Outside of these areas, the presumption should be against the loss of office space, although for

areas that contain poor quality ‘Grade C’ office space, such as parts of Chapel Road and Warwick

Street with little prospect of being let, especially where it is uneconomical to refurbish for office use, a

criteria-based policy should be adopted to enable the ‘worst cases’ to be brought back into beneficial

use for alternative uses.


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In formulating a criteria-based policy, the Council should have regard to:

• The quality of the existing office stock, in terms of sizes of suites, floorplates, entrance points

(i.e. whether it is a stand alone building or above shop units), specification in terms of

heating, lighting, ICT, reception area, lifts etc.;

• The length of time the property has remained vacant, and details of the marketing of the unit

in terms of level of interest, how long it has been marketed and what media has been used to

market the property;

• The rental value and terms offered on the office unit, and whether this is realistic for the

quality and size of the unit being marketed;

• A financial appraisal showing the costs of refurbishment and rental values that are likely to

be achieved for the refurbished space, to show that it is clearly unviable;

• Whether alternative employment-generating uses have been explored in detail, including

retail, commercial leisure uses, and the justification for or against these uses.

The policy should help to not only retain the ‘best’ quality stock in these secondary office areas, but

also bring forward other uses that can help support the economy of the town centre.

From an economic development perspective, it will also be important to consider whether there are

any potential solutions to tackle the issue of the cost of car parking within the town centre. Whilst, we

understand the importance of car parking income to help fund Council resources, there may be an

opportunity to review the town centre’s provision for long term parking for business use, or whether

permits/exemptions can be applied to car parks or on-street parking areas.

8.3 The Provision of Start-up/Serviced Units

As the Worthing economy is becoming increasingly reliant on small businesses, the provision of

start-up and serviced office suites becomes more important in developing the local economy.

Currently, the provision of workspace to nurture the development of local businesses is limited to two

or three serviced/managed schemes, with no provision within the Borough for incubation space.


143

A business incubator is viewed as a potential beneficial piece of property infrastructure that could be

developed in association with an educational institution such as Northbrook College or R&D facility,

such as GSK, and designed to develop certain sectors of the economy important to Worthing, such

as pharmaceuticals, advanced engineering and creative industries.

This type of facility can be delivered by the private sector, with companies such as Basepoint and

Oxford Innovation, which have 23 and 14 business centre operations respectively.

The Core Strategy and Economic Development Strategy should promote the concept of a business

incubator.

In addition, the town centre would benefit from a greater choice of serviced offices, especially within

modern buildings with the latest ICT connectivity to encourage ‘smart growth’ and flexible lease

arrangements.

8.4 Economic Development Agency Working Practices and Monitoring

It will be important that the new Economic Development Strategy has broad ‘buy-in’ from all key

regional, sub-regional and local partners. An important policy objective will be to provide a

supportive environment for business.

The LDF will be a key policy vehicle to ensure a timely and adequate supply of employment space is

provided. In addition, the Council will need to provide an appropriate monitoring and ‘aftercare’

relationship with indigenous and investing organisations to help secure their long-term future in the

Borough.

The Economic Development Strategy will need to set out a proactive and co-ordinated approach to

business retention and inward investment, including targeting of sectors, firms and promoting

appropriate employment sites and properties. We would recommend that the Council focuses on:

• Working effectively with regional (SEEDA) and sub regional (WSCC / WSEP) organisations

to ensure a co-ordinated approach to the promotion of Worthing to prospective inward

investors (specifically with regards to major strategic opportunities such as the Warren);


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• Investigating the opportunity of a business incubator with both public sector partners, Sussex

Enterprise, SEEDA, and local partners, such as Northbrook College and GSK to help

stimulate the development of more local businesses;

• Setting up appropriate mechanisms and systems to effectively engage with local landowners,

agents and developers;

• Improving monitoring of the local economy and demand for business premises, e.g.

enquiries, success/failure rates and perception of Worthing as an investment location; and

• Putting in place systems to update the Industrial Estate Survey, probably every 24 months as

this provides invaluable data on the nature of both occupiers and the employment stock

within the Borough.


Appendix I Stakeholder Questionnaire


Stakeholder Consultation:

Worthing and Adur Chamber of Commerce

Federation of Small Businesses

Worthing First

Town Centre Initiative

Community Voluntary Services

Learning and Skills Council

Business Link Sussex

Sussex Enterprise

Coastal West Sussex

South East England Development Agency

West Sussex Economic Partnership

West Sussex Sustainable Business Partnership

West Sussex County Council


Name: Organisation: Address: Tel.: Email address Q1. Please tick and/or describe what you consider to be the key business growth opportunities happening in the local economy?

Public administration Utilities

Tourism / leisure Transport / distribution

Community services HQ office

Manufacturing R&D technology

Hotels / restaurants Health & social work

Finance & business services Construction

Education Retail

Other comments: ……………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………

……………………………………

Q2. What do you consider attracts or deters businesses setting up or growing in Worthing?

Attract Detract

Quality of land and premises

Quality of the environment

Relative cost of land and premises


Type of tenure

Proximity of clients

Access to ICT

Access to a key R&D hub

Quality of public transport

Access to main road network

Availability of housing for labour

Quantity of car parking

Cost of car parking

Access to skilled labour force

Relative cost of labour

Other comments: ……………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………

……………………………………


Q3. Over the last 5 years, which property products have been in most demand in Worthing? (Please rank, with 1 being the greatest demand).

Rank

Period Town Centre Offices

Good Quality B1 Business Park Space

Distribution / Warehouse

General Industrial

Serviced Business Units

Bespoke Premises (i.e. design and build pre lets)

Other (please describe):

Q4. What has driven this demand in Worthing? (Please tick the 2 most significant).

Expansion of established local firms

Locally ‘grown’ firms (start ups)

Firms moving in from south east region

Firms moving in from the rest of the UK

Firms moving in from outside the UK

Q5. In terms of tenure, is the principal driver of demand for leasehold or freehold property, or both? (Please tick)

Leasehold

Freehold

Both

Q6. In which markets do you consider that demand is not being met in Worthing?


……………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………

……………………………………

Q7. Do you think the current stock of offices is the town centre is of sufficient quality and size to cater for business needs?

Yes

No

If you answered No, please identify the issues with the current stock ……………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………

……………………………………

Q8. How do you think market demand for employment uses will change in the next 5 to 10 years? ……………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………

……………………………………

Q9. In you opinion, will the current supply and location of employment land and property in the area meet changes in demand (as identified in Q6)?

Yes

No


Q10. What changes to the current supply and location of employment land and property would be required to meet future demand? …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Other comments:

Thank you for completing this questionnaire.


Appendix II Map of Town Centre and Edge-of-Centre Offices



Appendix III Forecasting Methodology


Forecasting Methodology With regard to our forecasting of future employment floorspace requirements in Worthing outlined in

Chapter Six, below shows how each of the standard industrial classifications have been assigned to

employment related land use classes. Our approach has been guided by the ODPM’s 2004 guidance

note on employment land reviews.

With regard to industrial related employment floorspace, manufacturing is relatively simple to assign

a land use class. Our analysis assigned all the manufacturing related employment sectors, shown in

orange, to the B2 use class in their entirety. It is less straight forward to assign employment sectors

to distribution (B8) land uses. Following the ODPM’s guidance, our approach was to employ the

entirety of the wholesaling sector plus 10% of employment in the construction sector, in recognition

that this sector does typically entail a small degree of distribution and storage activity.

In our assessment of office (B1) floorspace requirements, Banking & Insurance, Business Services

and Property Related Activities (collectively known as Financial & Business Services) were used in

their entirety. However, a limited degree of office related employment is generated across a host of

other employment sectors, most notably in public sector and Other Services. In recognition of this,

10% of total public sector employment and 10% of Other Services was added to the FBS

employment to create a proxy for office-based employment.


Employment sector breakdown and assigned employment use classes

ALL DETAILED SIC CODES Use

Class

% of employment

assigned Agriculture, Forestry & Fishing - - Mining (excluding Oil & Gas) - - Food, Drink & Tobacco B2 Textiles, Footwear & Clothing B2 Wood and Wood Products B2 Paper, Printing & Publishing B2 Fuel Processing B2 Chemicals & Manmade Fibres B2 Rubber & Plastics B2 Mineral Products B2 Metals B2 Mechanical Engineering B2 Electrical Engineering B2 Motor vehicles & other transport equipment B2 Other Manufacturing B2

100%

Utilities - - Construction B8 10% Wholesaling B8 100% Retailing - - Hotels & Catering - - Transport - - Communications - - Banking & Insurance B1 Business Services B1 Property Related Activities B1

100%

Education B1 Health B1 Public Administration & Defence B1

10%

Other services B1 10%



Appendix IV Potential Protected Office Areas


Liverpool Terrace/Liverpool Gardens Office Area

L[#’l[


Chatsworth Road Office Area


North Street/High Street Office Area


Railway Approach Office Area


Crescent Road (northern end) Office Area


Farncombe Road Office Area

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Final Report Economic Research - Employment Land - Adur District

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