Page 208 - Minutes of meeting

The Commercial Challenge

Demand & Supply

Office and Industrial Markets

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The Cumbria Employment Sites and Premises Study recognises that Barrow is a hub of advanced manufacturing and innovation
and is host to the design and construction of a new generation of submarines to carry the UK’s independent nuclear deterrent.
Barrow Port has a key role in delivering the submarine programme and in providing world-class marine engineering services to
the offshore energy sector. The Council and local stakeholders are working to maximise the opportunities presented by current
growth and investment in Furness, strengthening supply chain presence and using current prosperity to create a more diverse
and resilient economy.

The town is currently experiencing a period of investment and economic growth through the nationally significant Dreadnought
submarine programme that will support companies locally and is a catalyst for local economic growth.

Based on the growth of the Barrow economy on the back of the Dreadnought programme and a large offshore wind sector, the
demand for commercial space appears high with vacancy rates for office and industrial premises being lower than the national
average. A 2018 Study into Managed Workspace* identified market failures, with developers unwilling to build speculatively due to
the costs involved in bringing the sites forward for development and a perceived poor return on investment. The draft ESPS
suggests that whilst there is consistent demand for smaller employment space the stock of both office and industrial premises
does not offer the type of space sought, highlighting supply limitations in Barrow. However, the study recognises that Barrow has
a number of well positioned strategic sites that could help meet current and future industrial and office market demand.

Retail Market

The retail market has been facing a number of challenges nationally in recent years, including the growth of online retail and large
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retailers such BHS and House of Fraser disappearing from the High Street. The recent retail vacancy survey carried out by
Barrow Borough Council highlights that Barrow is facing these challenges with vacancy rates across Barrow town centre (17% -
A1 uses), significantly higher than the national average (11%). The survey also shows that demand for A1 retail has been limited
in Barrow town centre for a prolonged period with a number of premises being continuously vacant for over 5 years.

Despite the down turn in demand for A1 uses there has been consistent demand for A4 uses (restaurants and cafes) which has
seen some demand in the last 5 years, across the town centre. With the role of town centres shifting from retail uses to leisure
uses, Barrow town centre could see further growth in the restaurant and café market.

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1 LSH, Cumbria Employment Sites & Premises Study, 2019; Barrow Borough Council, Retail Survey – Vacancy Report, 2019; FEDF Demand & Supply of
Managed Business Space, 2018
Copyright © Hatch 2018. All Rights Reserved. Data source: CoStar, 2020