Local Plan Regulation 18 - Appendix 5 - Marketing requirements

A number of policies in this Local Plan require marketing evidence to be submitted for applications to justify a proposed loss of uses which are otherwise protected by policies. This includes employment uses, shops, pubs, and social and community premises. This appendix sets out the details that should be provided to enable officers to assess the acceptability or otherwise of the marketing undertaken. The policies covered are:

• E3 Loss of Employment Land and Affordable workspace
• E6-E9 Protected shopping parades and local shops
• E12 Public Houses,
• E13 Enhancement and Retention of Arts, Culture, Entertainment, Indoor Leisure and Recreation and Sport Uses
• SC2 - Enhancement and Retention of Social and Community Infrastructure

The council's assessment will consider the overall length, type and quality of the marketing. Marketing should include a robust and active marketing campaign as follows:

• Be ongoing for a minimum period as set out in the table below.
• Be carried out with at least two recognised commercial agents.
• The property should be marketed on property databases, search engines and other relevant websites which focus on the sale or letting of commercial premises, which are free to view and easily accessible by prospective purchasers/ tenants.
• Prices should reflect the market value of the property in its current use and current quality and be commensurate with the existing quality and location of the premises.

Information to be included in the marketing report:

• Identify the last occupier including name, address, nature of business.
• Identify the land uses the property/site is being marketed for.
• Evidence of marketing in at least 2 commercial agents including online.
• The date when marketing began and ceased (if relevant) for each agent, if more than one used.
• The websites or press the property/site was advertised on and identifying dates when freely available to be viewed. In the case of websites, the number of 'hits'.
• Details of direct marketing used including a copy of the marketing brochure, details of who the marketing particulars were circulated to including the size of the database, and whether the database used is mainly aimed at potential occupiers based locally or nationally.
• Distribution of marketing material should be on a quarterly basis.
• Whether a marketing board has been used and the dates it was displayed. Use of a mounted sales/letting board in a prominent position on each elevation throughout the marketing period is advised wherever possible.

Details of the marketing outcomes should include

(a) any expressions of interest and comments from viewings as to why the property wasn't suitable; (b) details of reductions in price (where applicable), and (c) offers made.

• In these cases the interested parties should be identified and where the premises were rejected the reasons for doing so should be stated.
• The two agents' views as to why the property is not letting.

All marketing undertaken must meet the requirements as set out above.

More specific marketing requirements for different types of uses, as set out below.

Offices (E (g) (i) or (g) (ii) Use Class)

Where a proposal involves a change of use or redevelopment resulting in a loss of office space, marketing must clearly demonstrate that there is no longer demand for an office-based use in this location, and that there is not likely to be in the foreseeable future.

Marketing must also include the following:

• Evidence that the site has been marketed for the existing office use and other types of office-based uses such as flexible, start-up or co-working space.
• Evidence that the offices have been marketed at a price commensurate with their existing quality or condition based on the local office market, by reference to rents achieved for comparable properties in the locality.
• Details of lease terms – leases should not be unduly restrictive and should include the potential for a short-term lease in appropriate cases.
• Evidence that the potential of upgrading the building or adapting the building to meet modern workspace requirements been explored. This may include a viability assessment addressing the feasibility of refurbishing or modernising the existing office space.

Industrial land and business parks (E (g) (ii) or (g) (iii), B2, B8 Use Class and Sui Generis uses)

Where a proposal involves a change of use or redevelopment resulting in a loss of these uses, including industrial space, the marketing information must include

• Details of commercial agents used. It is expected that the agents would specialise in this sector.
• Detail of the marketing campaign to clearly demonstrate that there is no longer demand for these uses, and related industrial uses in this location, and that there is not likely to be in the foreseeable future.
• Alternatively, evidence must be provided to show why the site is not suitable with or without adaption taking into account locational criteria for these uses in the London Plan, outcome of the marketing campaign such as viewings

Note that attempts to market poorer quality premises should be on the basis of their present condition, and not on their potential for redevelopment in other employment uses, or proposing housing as the only viable option.

Retail (E(a) Use Class)

Where a proposal involves a change of use away from retail that is not supported by policy within designated and non-designated shopping frontages, marketing must include the information set out in the introduction to this appendix, plus:

• the rental value the property was marketed at and
• a comparison of rents achieved for other comparable E(a) uses relevant to the application site, taking into account the size of the unit and other matters such as location and servicing.

Marketing evidence will be sought for loss of a retail unit or where the loss (including ancillary floorspace) is very substantial.

Pubs

Supporting evidence will be required to demonstrate that all reasonable efforts made to preserve the continuing operation of the facility as a public house and how this has affected the pub's trading performance. Examples of initiatives would include the potential such as offering B&B, changes to operating hours, improving the food or drinks offer, adding a kitchen and serving food.

The applicant will need to demonstrate that there is no reasonable prospect of a pub being able to trade from the premises in the medium term, by submitting robust financial evidence including rents and turnover figures, and operational factors relevant to viability including hours of opening, availability of food, meeting and event rooms. In assessing the future operating potential of a public house, it may be helpful to refer to " The Public House Viability Test " prepared by CAMRA (The Campaign for Real Ale), http://www.camra.org.uk/campaigners 

The council may undertake a peer review of the viability assessment using its own assessors, to be funded by the applicant.

Details should be provided about the operation of the public house (including at the time of closure if vacant) such as

• the turnover of the public house
• the last three full years of audited accounts
• the percentage split between food and drink,
• whether the premises is used for meetings, community purposes, or entertainment such as theatres, music venue etc.

Applicants must submit a marketing exercise to demonstrate whether there is a demand for the pub at a realistic rent or freehold value which is 'free of tie'

The marketing exercise must include the information set out in the introduction to this appendix, plus:

• The opinion of an RICS qualified chartered surveyor specialising in the leisure sector, independent of the selling agent to confirm that the rental and freehold value of the pub used in the marketing exercise is reasonable.

Where a replacement facility is proposed off site, the applicant should demonstrate to the council's satisfaction that the facilities offer the same or better range and standard than those lost, taking account of the needs of the community, such as meeting rooms, beer gardens stage/performance space, and that the new location would be easily reached by users of the facility.

It is expected that public houses will be marketed via an estate agent specialising in the leisure industry,

Many public houses are considered to be a valuable community facility. The council may require an applicant to fund a survey to establish the views of the community, including members of protected groups where appropriate, on the loss of the public house. The methodology and content of the survey would need to be agreed in writing by the council and be funded by the applicant.

If a pub is registered as an Asset of Community Value, a survey will not be required to demonstrate to the council the community value of a pub, as that has already been established by that designation.

Arts Culture Entertainment (ACE) uses

The ACE cultural and arts sector is underpinned in its Industrial strategy, and the council seeks to ensure that its cultural and leisure offer is sustained and enhanced. The council will require evidence to justify the loss or change of use which takes account the social and economic benefits provided by these facilities. Applicants must include;

• Details of all reasonable efforts made to preserve the continuing operation of the facility and how this has affected trading performance.
• The last three full years of audited accounts to be submitted to the council.
• A marketing exercise and viability assessment that considers the ability of the premises or site for alternative arts, cultural or entertainment uses unless the council confirms in writing that this is not required.
• The scope and range of uses included in the marketing exercise must be agreed by the council in advance.

The marketing exercise must include the information set out in the introduction to this appendix, plus:

• The opinions of an RICS qualified chartered surveyor specialising in the leisure sector, independent of the selling agent to confirm that the rental and freehold value used in the marketing exercise is reasonable.

The council may peer review the viability report using its own viability assessors which will be funded by the applicant.

Where a replacement facility is proposed off site, the applicant should demonstrate to the council's satisfaction that the facilities offer the same or better range and standard than those lost, and that the new location would be easily reached by users of the facility.

Where the property is a purpose built theatre or/and an existing heritage asset, the impact on its features and evidence that these would not be significantly diminished through conversion to an alternative use.

In the case of theatres, the council will expect applicants to engage with Theatres Trust and have regard to its guidance and viability information.

Social and Community Infrastructure (within E, F Use Classes and Sui Generis uses)

For applications involving any loss of Indoor Leisure and Recreation and Sport Uses, or a social and community infrastructure, applicants must demonstrate a robust marketing campaign, and that the potential for re-using or redeveloping the existing site for these uses have been fully considered.

These requirements will also apply to small scale or local community infrastructure located outside major town centres. The marketing will need to be robust to show that the social and community role and value has been identified and considered through engagement with voluntary/community groups, in line with Policy SC2, and that there is no longer an identified current or future need.

Marketing must also include the following:

• Evidence that the facility is no longer needed.
• Evidence of meaningful engagement with service providers or a public disposal process would be required to demonstrate this.
• Evidence that the loss of the facility would not have a detrimental impact on social and community service provision. For example, a marketing report could provide details of alternative facilities in close proximity and provide evidence that existing users have all been successfully relocated and that this has not resulted in any shortfall in provision.
• Consideration should be given to the potential for adapting the site / premises to meet community needs either now or in the future.
• Evidence should be provided to show that premises have been offered at a reasonable charge to appropriate user groups, e.g. at a discounted rate to community groups or voluntary organisations.
• Where the site is an existing health facility, consideration should first be given to re-using the site for other health facilities before other social infrastructure uses.

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