Commercial and Industrial Floorspace Change
1974-2007

Introduction

Commercial and industrial floorspace statistics first became available for the Lancashire in 1974. The statistics were published more or less annually until 1986, when there was then a break in the series until new data was published for 1994. This was followed by another break until 2000 and again in 2001. The latest set of figures is for 2007 (see the Commercial and Industrial Floorspace research monitor for a more comprehensive overview of the most recent data).

The Globe Centre, Accrington, Hyndburn District

The statistics in this report are presented down to the Lancashire District level and also include details for England. Results for Lancashire are presented at the NUTS-2 and NUTS-3 levels. The level 2 figures encompass the 14-district area that includes Blackburn with Darwen and Blackpool unitary authorities, whilst the level 3 figures exclude the two unitaries. This report concentrates on analysing the Lancashire results at the NUTS-2 level.

The 2007 statistics come from the administrative databases used by the Valuation Office Agency and have been processed by the Department for Communities and Local Government. The figures were obtained from the 'Neighbourhood' section of the Office for National Statistics website. All the Lancashire results have been added to our Data Download Centre and the district results can also be found in the Area Profiles.

Data Quality and Comparability

The Valuation Office Agency revalues commercial and industrial property every five years to set rateable values in line with an assessment of the current commercial and industrial rental market. The statistics for 1st April 2007 are based on the 2005 Value Office Agency revaluation, and the changes occurring for this revaluation had a significant and unavoidable impact on the continuity of the statistics with those for 2000 to 2004.

In turn, the 2000-2004 statistics are not precisely comparable to previous issues due both to differences in the way the data are collected and the way in which the basic data units – the hereditaments – are classified

The 2000 statistics included government offices for the first time. Prior to this, only commercial offices were covered. This had a major impact on recorded office floorspace in Lancashire.

Another anomaly is that many of the 1994 statistics, particularly for the 'industrial' sector have been shown to be unreliable with total industrial floorspace being significantly underestimated because of the omission of a small number but very large factory and warehouse hereditaments. Retail floorspace totals were also affected to a lesser extent by this problem.

In general terms, hereditaments are similar to premises appropriate or used for single occupation, usually buildings or premises within buildings.

The attempt to measure floorspace cahnges from 1974 to 2007, is therefore fraught with difficulties regarding the compatabilty of figures over the years, therefore the figures should be used wih caution. The figures should therefore only be seen as general guidelines, but comparisons between the rates of change at the district, county and national levels, along with the proportions in the various sectors, probably give a reasonable interpretation of local specialisms and broad market movements.

Lancashire Summary Results

Commercial and industrial 'bulk' floorspace of all kinds in Lancashire increased by approaching 2.5 million square metres between 1974 and 2007, a net increase of 15.6% (Table 1). In comparison, the percentage growth rate for England as a whole, over the same period, at 29.8% was almost double the Lancashire rate. It might also be noted that there was a slight distortion in Lancashire's favour over this period with the inclusion of government office floorspace from 2000 onwards.

This pattern reflects the county's longer-term declining contribution to the national economy, and is also evident across many other economic indicators, exemplified by the comparative decline in Gross Value Added in Lancashire compared with the national average.

Industrial and Other

The size of the Industry sector, in comparison to the other two groups, meant that the relatively static picture in the county for this sector was the prime reason why the overall percentage increase for Lancashire in all bulk classes was so far behind the national rate of increase.

The sector recorded only a very moderate increase in floorspace area in Lancashire over the 33-year period, however this overall figure masks a decline in factory space that has been offset by an increase in warehouse space. The reduction in factory space was in part the result of the downsizing of large integrated industrial companies and the scrapping of older industrial capacity, which in turn led to lower levels of employment in the manufacturing sector in particular. Conversely, the trend towards 'just-in-time' manufacturing and other modern forms of industrial organisation, as well as the increasing importance of dedicated distribution and logistics generally, encouraged the expansion of warehousing capacity. This has experienced virtually uninterrupted floorspace growth throughout the period.

In parallel with these trends there has been a steady reduction in the average size of industrial units, from 1,240 sq.m. in 1974 to 813 sq.m. in 2007 – a reduction of 34%. This tendency was also apparent across England where in 2007 the average size of an industrial unit was 739 sq.m.

In 2007 there were 8,069 factory hereditaments in Lancashire, with an average floorspace of 948 sq.m., and 6,801 warehouses, with an average floorspace of 744 sq.m. The remaining Industrial hereditaments (1,365) are classified under an 'Other' section where the average floorspace is 36 sq.m.

Retail

Retail floorspace expanded strongly over the period from 1974 to 2007, and in Lancashire this expansion was almost on a par with the England average. The actual number of retail hereditaments, or units, in the Lancashire NUTS-2 area fell from 22,560 in 1974 to 17,668 in 2007, however this was in part the result changes to what is actually classified as retail floorspace.

The decline of the 'corner shop' type retail outlet, that has resulted in the fall in the number of units in this sector, has been more than outpaced by other forms of modern retail formats, including the large expansion of supermarkets and other out-of-town retail parks and stores. The growth of internet shopping will also have a growing impact over future years. In consequence of these patterns, the average size of retail unit in Lancashire has increased from 95 sq.m. in 1974 to 176 sq.m. in 2007, though remains smaller than the England average of nearly 193 sq.m.

Offices

The position in respect of this floorspace use is less certain because of the inclusion from 2000 onwards of government offices. These constitute an unknown but sizable proportion of Lancashire's total office stock, particularly in the Fylde coast and in parts of central Lancashire. The increasing demand for various business services over recent years, and the accompanying large increase in business sector jobs, has undoubtedly encouraged an expansion of office floorspace, but the major change in 2000 means that comparisons between the figures for 1974 to 1994, and from 2000 onwards are too unreliable From the start of the new millennium, the Lancashire NUTS-2 area has recorded an additional 252,000 sq.m. added to the stock – a net increase of 15.5%. Over the same period, office floorspace in England increased by 10.8%. Office space in the county only accounts for 10.3% of total floorspace whereas for England the average is 17.2%. Overall, office use in the Lancashire sub-region in 2007 comprised some 7,093 separate hereditaments covering a floorspace area of 1.877 million sq.m. With an average floorspace area of 265 sq.m., office units in Lancashire were smaller than in England where the average was 292 sq.m. The average rateable value of offices in Lancashire in 2007, at £55 per sq.m., was well under half the figure for England at £120 per sq.m.

Floorspace Change by District

Modern Premises, Matrix Business Park, Chorley District

Floorspace changes in Lancashire districts between 1974 and 2007 are outlined statistically below in Tables 2 to 5.

• Table 2 – Total Commercial and Industrial Floorspace
• Table 3 – Industrial and Other Floorspace
• Table 4 – Office Floorspace
• Table 5 – Retail Floorspace

Table 2 reveals at the local level, that Blackburn with Darwen unitary authority had the largest amount of commercial and industrial floorspace in the Lancashire NUTS-2 area by a significant margin, however the amount declined by -4.6% over the 33-year period. This percentage decrease was at odds with the broad trend towards increasing levels of floorspace, however Rossendale District recorded a decline which at -19.4%, was in fact far more dramatic. For Lancashire as a whole the amount of Floorspace increased by 15.6%, whilst for England the increase was much higher at 29.8%. West Lancashire recorded a dramatic 80.4% increase, whilst Wyre was similar with 80.2%. In general terms strong growth was recorded in the central and northern sub-regions of Lancashire whilst there was a static overall picture in East Lancashire.

Table 3 confirms that the reductions in Blackburn with Darwen and Rossendale were in the industrial/other floorspace sector. Five other districts also recorded falls in their amount of floorspace in this sector over the past 33 years, and this contributed to the rather static picture in the county over the period with a small rise of just 1.9%.

Table 4 details the dramatic growth in office space however in comparison to the figures in Table 3, the amounts are still relatively small. The percentage growth figures are somewhat distorted by the low baseline figures in 1974, but the Table emphasises the large amount of office accommodation in Preston District and the dramatic growth in the neighbouring South Ribble District.

Table 5 examines changes in levels of retail floorspace and highlights Blackpool unitary authority as the area in Lancashire with the largest amount of retail space. This is a reflection of its role as a tourist destination and the resultant bias towards a higher level of retail space. Preston district with its role as an important retail centre has the second highest amount of retail space in the county. In terms of changes between 1974 and 2007, the increase in the Lancashire NUTS-2 area of 44.7% was only just below the rate of change for England of 45.4%. The central Lancashire area in general recorded the most dramatic growth rates with the figure for South Ribble in particular increasing by a substantial 154.1%.