Open all hours: the challenges of creating a night-time economy

King’s Cross, Stratford and Vauxhall. Formerly abandoned wastelands, property developers have seized vast chunks and looked to create something different. But how have they gone about placemaking in areas which either currently retain a night-time vibe, in the case of Vauxhall’s LGBT scene, or formerly housed legendary clubs? King’s Cross was renowned for Canvas (formerly Bagley’s), The Cross, and The Key, all culled in 2007 as part of a £3bn regeneration drive. Meanwhile, Stratford’s Reflections nightclub closed in 2005, while Sync London (formerly the Stratford Rex Cinema) closed down after the local council brought in tougher licensing rules in 2013. So how are developers in these areas taking advantage of the city’s night-time economy? London is increasingly embracing a 24-hour culture that does not just cater to clubbers, but also the city’s thousands of late-night workers. As Denizer Ibrahim, placemaking and special projects director at BNP Paribas Real Estate, says:  “Over the years in London we’ve seen some iconic night-time venues close down. “But when there are over 700,000 people working in London every night – which is nearly the population of Amsterdam – we have to go beyond just clubbing and drinking. Why can’t someone get a tea at Pret at 2am?” King’s Cross [gallery type="slideshow" size="full" ids="941766,941765"] King’s Cross, an area renowned for clubbing in the 1990s, was taken on in 2000 by Argent. Still under construction, the developer has just over 7m sq ft to play with. Argent executive director Robert Evans says: “A lot of people of remember Bagley’s and The Cross. We haven’t kept those operators, but they helped create a fondness for King’s Cross. They made people more open to the idea that it could be a destination.” So far, several restaurants and bars have already opened, from Dishoom in 2014 to Tom Dixon’s Coal Office in August this year. The area also includes bar and café Spiritland, open until 1am, and Tileyard Studios, where Lady Gaga and Mick Jagger have recorded. Even Waitrose on Granary Square has a wine bar. [caption id="attachment_941619" align="aligncenter" width="847"] Spiritland is a new fixture at King’s Cross[/caption] Still to come are a live music venue at 4 Pancras Square and a 355,000 sq ft, 600-seat theatre adjacent to Coal Drops Yard, as well as a new shopping quarter due to open in October. Evans says: “Our planned live music venue builds on what we have done here. Our Lumiere London light show last year brought in a quarter of a million people over two or three nights. King’s Cross was a major focus of it; we are part of that night-time economy.” It’s a far cry from King’s Cross’s darker past, property agents say. As one London leasing head comments: “In the 1980s, there were dead junkies in cars in King’s Cross’ Tileyard. It was a no-go area. But three or four years ago Mark Ronson came to Tileyard and opened a studio.” Matt Ashman, Cushman & Wakefield head of London leisure and restaurants, adds: “The heritage and what it was known for, the likes of The Cross and Bagley’s, also had a darker side historically. Frankly, all the drugs and prostitution. “It has come a very long way since then. The bars and restaurants have all been encouraged to open both that little bit earlier and later to encourage people to go there and enjoy it, because it is a proper mix now.” Battersea Power Station’s development director and head of leasing, Andrew Hilston, says: “I am a big fan of King’s Cross and we are looking to emulate their success. I think they have a good mix of uses and good public realm.” Vauxhall [gallery type="slideshow" size="full" ids="941764,941762"] Vauxhall’s nightlife has been going strong for nearly 300 years, since the re-launch of Vauxhall Gardens as the Pleasure Gardens for evening entertainment in Georgian London. However, there are now question marks over the future of some of its venues, such as the Royal Vauxhall Tavern, long considered the centre of the area’s gay community. Moreover, many of the area’s LGBT venues are located in and around the station and its arches – owned largely by Network Rail. Local tenants have questioned why news of the planned sale of the company’s arches portfolio has coincided with rent increases. [caption id="attachment_883915" align="aligncenter" width="775"] There are question marks over the future of venues such as the Royal Vauxhall Tavern[/caption] Bernard Collier, chief executive of Vauxhall One Business Improvement District (BID), says: “There is pressure from Network Rail to raise rental costs and they have a real placemaking role.” In response, Matthew Ball, commercial operations advisor for Network Rail, says: “In some quarters, people are fearful that rents are being pushed up because the estate is being sold, but that is not the case. These are business-as-usual rent reviews.” Another challenge is the sheer number of developers in Vauxhall. These are domestic and international, such as Ireland’s Ballymore, the UK’s Berkeley and China’s Wanda Group on the ongoing Nine Elms residential project, which spans just over 24m sq ft of central London on the south bank of the River Thames. As Savills corporate real estate director, Piers Nickalls, says: “At King’s Cross, Argent have the ability to control the entire estate and what operators come into the estate. To a certain extent, the same thing is true of Delancey in Stratford. “Vauxhall is far harder, as there is no single owner. Ultimately, that makes it more challenging to create a good night-time offering.” Stratford [gallery type="slideshow" size="full" ids="941763,931856"] Stratford, formerly a toxic wasteland, was redeveloped for the 2012 Olympic Games. The Queen Elizabeth Olympic Park now hosts various after-dark events, such as world-travelling music festival Elrow Town in August. But what about the other spin-off developments, such as Here East, formerly the Olympic Media Centre? Now a technology-focused business, Here East is also looking to take advantage of the city’s night-time economy with its Canalside restaurant and bar offering. Here East chief executive, Gavin Poole, says: “The local community comes here, there are events, and Canalside is a new destination where people can go out.” Meanwhile, East Village, the former Athletes’ Village, is now the UK’s largest private rented sector neighbourhood, with a plethora of largely independent retail and leisure operators. Delancey retail portfolio director, Ian Raeburn, says: “The Olympic Delivery Authority had done a lot of the groundbreaking piece to set up the Olympics. So when we came in it was a place, but not fully defined. We have been able to work with them and define how it will look.” However, with nearby Hackney having brought in restrictive legislation for its night-time economy, Delancey retail asset management director, Steve Burgin, says none of the operators in the area are open late: “With Hackney clamping down on late licensing, it is a really difficult balance to achieve.” But the developer has helped them open as late as possible. “A lot of our operators are independent so we got a licensing lawyer and funded some of the costs,” Burgin says. “Many of them had never applied for a licence before. There are restrictions in their lease saying they can’t open later than 11:30pm or midnight, but these are variable.” EG’s verdict For overthrowing an area’s seedy reputation and bringing in new nightlife, which does not completely abandon its past, Argent’s King’s Cross must be judged as a success. The only question is whether it can sustain a night-time economy that pulls in a crowd beyond its resident tech workers. Meanwhile, although Stratford and Vauxhall are both revitalised day-time districts, there are question marks over their future as night-time areas. It will take longer for masses of Londoners to be drawn to Stratford as a newer night-time spot, especially as it is under pressure from licensing restrictions. Can Vauxhall’s multiple developers pull together and create a joined-up destination after dark? Only time will tell. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette Main image © Molly Macindoe/PYMCA/REX/Shutterstock