CONCORDE HOUSE, GATWICK: VARIATION OF CONDITION FOR NON- AIVIATION RELATED OFFICE USE

Transcription

1 CQ2coIO48IN 19th October 29 Our Reference Crawley Borough Council Planning Services Town Hall The Boulevard Craw ley W.Sussex RHIO 1UZ FOR THE AflENTION OF DEVELOPMENT CONTROL / Dear Sir/Madam CONCORDE HOUSE, GATWICK: VARIATION OF CONDITION FOR NON- AIVIATION RELATED OFFICE USE 1. INTRODUCTION Entec UK Ltd on behalf of Gatwick Airport Limited (GAL) wish to apply to vary a condition under Part 18 (a. 1(d)) of Schedule 2 the Town and Country Planning (General Permitted Development Order) 1995 to enable GAL to market a portion of their office space within Concorde House to potential non aviation related users. We wish to apply for the condition to be lifted for a period of 7 years. Our research has shown that there is a significant amount of unlet office space within the airport complex. Should there be a future requirement for aviation related office space we believe this can easily be accommodated within existing provision. In addition, we have collated information which shows that Crawley Town Centre is not likely to be affected by GAL providing additional office space on the open market at Gatwiek. 2. PLANNING APPLICATION APPROACH We are aware that Concorde House was built c 1976, however after significant searching by Entec and officers at the Council, the original planning application has not been found. We have taken the view that Concorde House was likely therefore to have been built following a Consultation under the then existing General Development Order. In which case when it was built it would have been 'permitted development' subject to a condition that the building would be an operational building - in effect limiting the use of the building for operational airport related purposes, in the way that para A. 1(d) of Class A of Part 18 of the current GPDO limits permitted development to operational buildings. Our approach therefore in this planning application is to apply to temporarily vary the condition within Part 18 of the 1995 GPDO which limits the building's use to airport operational use only. h \projects\-2i O\23-ptojects\232O3 gatwick planning iuppon\task 29 concorde house pinnitiog hi,tory\ptaon,ng applicetiori\concorde house _planning application letter final doc

2 Ourrence32i g')1 J 'thj This approach was agreed by Paul Fairham, Head of Development Control in an dated 2th August LOCATION OF CONCORDE HOUSE Concorde House is a 4-storey office block comprising approximately 35, sq ft of floorspace lying within the south east of the South Terminal building close to Pier I. Gatwick's South Terminal is very well served by Gatwick rail station, bus terminal, shops, restaurant, café, and hotel facilities. South Terminal's excellent local, regional, national, and international connections mean that office and meeting space in this location is likely to be keenly sought by many businesses. 4. PROPOSAL GAL wish to market a proportion of the floorspace within Concorde House for non aviation related office use. No more than 25% of the building floorpsace will be offered to the open office market. This amounts to approximately 8,75 sq ft. A specific tenant has not yet been secured as GAL are reluctant to market the office facilities until the current use restriction has been lifted. Potential tenants could include serviced office space providers such as Regus and Avanta (for example), or specific companies seeking established office facilities. GAL appreciate that Crawley Borough Council may not wish to lift the condition indefinitely. To enable security of tenure for both GAL and potential office space users, and to factor in a refurbishment! marketing period, we wish to apply for the condition to be lifted for a period of 7 years (enabling a 6 year tenancy agreement.) Given the increasing amount of vacant office floorspace within Gatwick it is extremely unlikely that office space will be so substantially reduced in that period as to present any real risk of there not being alternative accommodation on airport for additional operational office use if required. 5. PLANNING PRECEDENT In the last two years, two similar applications have been approved by Crawley Borough Council: Jubilee House, North Terminal (CR127/3351NCC): Non compliance with condition 3 of CR!376!199 Rental of office space to non airport related business. Granted 4/917 First point Buckingham Gate (CRI2S/5731NCC): Temporary variation for a period of 5 years of condition 2 of CR /FUL to allow the occupation of the building by a non airport related user. Granted 22/1 GIGS 6. PLANNING POLICY The Supplementary Planning Document on Development at Gatwick Airport states that: h:\projects\n-2lgl23ooo-project.232o3 gatwicle phnning nupport\task 29 concorde hone planning hisioryiplanning application\concordc house planning application letter final dot

3 Our Reference th October 29 'The Council would not generally wish to see development or changes of use at the airport for commercial purposes which do not contribute to the safe and efficient operation of the airport. Only in spec(fic circumstances, either in terms of scale or temporary nature would such uses be considered acceptable eg the temporary let of small scale office accommodation where no alternative airport related use can be accommodated.' There is therefore policy support for temporary let of space to non-airport related users. The information below provides further justification to support GAL's proposals. 7. JUSTIFICATION 7.1 Reduced Requirements for Airport Related Office Space Over recent years the emergence and growth of low cost airlines has had a dramatic change in airline requirements at Gatwick. The low cost airlines have less office property requirements on airport. Analysing typical airline requirements we have found that: Traditional Carriers tend to have 1 sq ft of office space on airport for every 14 passengers they fly each year; Charter operators tend to have 1 sq ft for every 335 passengers they fly each year; and Low cost carriers have up to 1 sq ft for every 875 passengers they fly each year. There are also a number of low cost carriers at Gatwick that have no property requirements for example Ryanair, who are one of the top 1 airlines in terms of passenger numbers at Gatwick. A number of large traditional carriers are considering their future at Gatwick in favour of operating out of Heathrow for example American and Continental no longer operate out of Gatwick, and Delta, US, and North West are considering reducing the routes they operate. This will have a significant knock on effect on office accommodation requirements. In addition, the current economic climate and the sharp increase in the cost of aviation fuel mean that airlines are seeking to reduce costs wherever they can. As airlines can terminate their lease with 3 months notice, high void levels are likely to increase. 7.2 Assessment of Void Space In recent years the amount of unlet office space has increased significantly from 5% in 26 to 18% in 28 as illustrated in the graph below. The latest figures for July 29 indicate that office vacancy has reached 2%. (NB: The dip in the last two quarters of 26 was a result of the Gatwick Management Teams decanting from Destinations House temporarily across the portfolio to allow for refurbishment works.)

4 p. Our Reference th October 29 Office Vacancy Trendsi e q5sq9 S 1, C,', Period q9 The table below outlines the amount of unlet space available within the landside office portfolio. Concorde House currently has some 2% of office space available. n*anuu Vc:LI Office Space (April 9) OFFIcEs LANDSIDE Ashdown House Atlantic House Balcony offices Concorde 2- North Concorde 2- South Jubilee House Longbrldge House Lost Property Norfolk House Oewbnations ITS North ITS South (1st & 2nd) JIOTAL 44,927 26,132 12, ,33 9,451 46,946 2,155 34,77 42,526 15,854 7,86 2,877 7,678 1,535 6,893 5,619 33, ,461 46,546 81, Alternative Office Locations We appreciate that there may be concern that potential users of the office space may accommodate to Ggtwick to the detriment of Crawley Town Centre. The table below summarises the responses from recent enquirers who viewed the office space available at Gatwick but went elsewhere. Rather than relocating to Crawley they appear to have moved to

5 Our Reference th October 29 alternative locations: ôccupier Hanover international ALS Insurance Services Ltd Times Right Marketing Square Foot Consulting Airport Building Viewed Atlantic House Timberhani House Ashdown House Concorde North Comments Liked the building but were concerned about lack of security of tenancy due to current aviation only restriction Wanted to appeal to sell insurance to airport companies but no link as yet with Gatwick too tenuous Not air related but wanted close links with airport. Needed to secure space quickly so went elsewhere Wanted to relocate to an internationally served location. Current aviation only restriction meant they wert elsewhere Location Secured Secured pace Victoria space Hounslow near Heathrow Secured space Croydon Secured space in Reading 8. JUSTIFICATION FOR TUE PROPOSED DEVELOPMENT Entec 1.5K Ltd on behalf of Gatwick Airport Limited (GAL) are appiying to vary a condition under Part 18 (a.1(d)) of the General Permitted Development Order 1995 to enable GAL to market a portion of their office space within Concorde House to potential non aviation related users. To enable security of tenure for both GAL and potential office space users, and to factor in a refurbishznentl marketing period, we wish to apply for the condition to be lifted for a period of 7 years (enabling a 6 year tenancy agreement.) No more than 25% of the floorpsace will be let to the open market. A planning precedent has been set in recent years as 2 similar planning applications have been approved by Crawley Borough Council on a temporary basis as supported by policy outlined in the SPD for Development at Gatwick Airport. Given the current and potential increase in unlet office space within Gatwick we are confident that alternative accommodation on airport could easily be found should office space be required for aviation related purposes. Crawley Town Centre is unlikely to be affected by the provision of open market office space at Gatwick Airport.

6 I Our Reference th October 29 Yours faithfully CAROLINE SEARLE Senior Planner Direct Line searc@entecuk.co.uk