UK SBS FWRECR17118BEIS - The Impacts of Commercial Property

To address an evidence gap on the impact of commercial property investments on local labour markets in general, and productivity more specifically. This research will provide evidence on whether there are any impacts on local labour markets and productivity, as well as further positive external benefits as a result of new developments. The outputs of this research will support the work of BEIS and the Unit. The outputs will be used to improve economic appraisals involving commercial property. Estimates on the impacts of commercial property interventions will be used in the building and appraising of business cases for spatial interventions for the Unit. These estimates can also be used to support the appraisal of future BEIS policies where site development is a main element of the intervention. The evidence generated will feed into any policies with a site development element, contributing to a wide range of work streams. These include, for example, supporting the building of new manufacturing plants and (potentially) the geographical placement of new innovation hubs. This study also complements the current work on the impact of incubators and accelerators in the UK, contributing by taking a different (micro-level) perspective. Work is required to provide estimates on the impact of new commercial property on labour markets for use within economic appraisals. This is of particular interest for the Unit's work on devolution, Enterprise Zones and Growth Hubs, as well as the Department's on-going work in assessing the impact of incubators and accelerators. These programmes aim to promote local economic growth as a way of raising prosperity in all parts of the UK, and clearly can have an effect on local labour markets. The area is also clearly of significant importance for BEIS considering the current work aimed at improving the Department's appraisal guidance, and the on-going discussions with Her Majesty's Treasury and DCLG about employment assumptions around new property developments. Objectives 1. To produce estimates on the impact on firm turnover and employee wages from new commercial properties. 2. To explore the role of new commercial property for driving local economic growth, local labour markets, and productivity more generally, by testing over different spatial units. 3. To support on-going work on the impact of accelerators and incubators in UK economy. The study should primarily test for any impacts at the firm level, by different types of development if possible, and then for impacts over varying distances / geographical units to identify any issues such as displacement.