Culture vultures
We’ve had an overwhelmingly positive response to our short series of blogs focusing on the ‘alternative’ property use types P-THREE thinks are of greatest relevance for integration into true mixed use developments. It confirms our belief that important discussions are taking place right now on how the occupier mix in urban centres is changing in a way we might not have expected even a decade ago. So far, we’ve considered the growth potential of SIS (Life Sciences) and education uses.
What I think is particularly exciting about culture space is that it has massive potential. Not just in major cities, but also in towns and cities across the country, some of which once had hugely thriving cultural scenes that are waiting to be reclaimed. The renaissance of urban areas, including High Streets, goes hand in hand with the development of culture space
Both of these are relatively new entrants into mainstream property development, yet it occurs to me that another use type – culture – which, conceptually at least, is much more familiar to many of us is due a re-think. What constitutes culture use is an interesting topic in itself (and one we might well explore in more detail in a future Perspectives), but in its widest sense it includes: cinemas, theatres, live performance venues, art galleries and museums. Recent examples of culture space as an important addition to wider property development in the UK include:
Canning Town – English National Ballet
East Bank, Stratford – Sadlers Wells East, V&A East
Manchester – The Factory
Sunderland – The Fire Station
My own experience working on new development and regeneration projects is that many have had a certain amount of space allocated for culture use. But a decision about how that space will actually be used has been left right until the end, often as an apparent afterthought. For me, a key question that ought to be asked – and answered – much earlier in the process, is: what cultural use fits best with a particular scheme?
To explore this further, I hooked up with our friends at global research and strategy consultancy Sound Diplomacy, who have practical experience at both individual building level and producing bespoke cultural strategies for whole districts. Head of business development and global head of infrastructure Jett Glozier says: “Culture can ultimately provide developers and investors with an alternative means of income, as well as adding great benefit to individual schemes and public realm, but because it isn’t as straightforward as, say offices or retail, sectors they are comfortable with, it can be more challenging for them. Conversely, those working in the creative sector often have a misplaced understanding of how property works that often results in them having a negative view of developers.”
The good news is that some of the UK’s premier developer investors, including L&G, Earl’s Court Development Company and U+I, are firmly embracing the challenge of including culture space in their schemes. Yet, still far too often, according to Jett, plans for culture space are bolted on, rather than being considered early in the process as part of the overall tenant mix. There are good practical reasons why this is necessary.
Jett explains: “There is a whole raft of technical specifications, from soundproofing through electrical supplies to the effective planning of access and egress of guests, that need to be considered and are much easier to design ahead of construction, rather than retrofitting later. For example, traditional commercial building floor to ceiling heights often don’t work with performance venues as the sight lines won’t allow the audience to see the stage.” And the type of venue also needs careful consideration. “A nightclub underneath a residential tower is unlikely to work well,” adds Jett, “but the same space could be an excellent location for studios, fashion workshops and maker spaces – we have to remember that ‘culture’ encompasses making, as well as consumption.”
As P-THREE has recently noted, there is an important discussion already taking place in property circles on the value of community space. There is a natural synergy between community and cultural space. And Jett points out that many developers, when considering their ESG commitments, could find this to be an important driver in providing creative people with a dedicated space where they can develop their talent. My own experience suggests that culture space adds a special kind of vibrancy to a development and, on a more practical level, can stimulate local leisure and restaurant activity.
Perhaps the biggest hurdle in creating better and more sustainable culture spaces is who pays for them. Developer investors are used to occupiers paying for their own fit-out costs, but in the culture sector the most attractive operators are already savvy enough to be asking for capital expenditure contributions. Many spaces can be at least partially funded through one-off grant payments from public sector or other bodies (such as Arts Council England and the National Lottery). But with current economic strictures Jett notes: “Forward-thinking developer investors will take on an element of risk by, for example, agreeing turnover rental deals with culture space operators, because they understand the wider benefit (and greater overall profitability) it can create for their schemes.”
What I think is particularly exciting about culture space is that it has massive potential. Not just in major cities, but also in towns and cities across the country, some of which once had hugely thriving cultural scenes that are waiting to be reclaimed. The renaissance of urban areas, including High Streets, goes hand in hand with the development of culture space, and will, I’m convinced, bring with it a plethora of opportunities.
Article by Thomas Rose & Kate Sadler
