Cabinet recently approved the proposal to allocate £100,000 towards these studies.

It has been suggested in recent market evidence that there is a major gap between development costs and completed property values in East Ayrshire, limiting speculative private-sector development. 

At present, it is not commercially viable for the private sector to invest in commercial build for business and industrial premises.

The proposal agreed at Cabinet will see the council attempting to tackle this concern by providing industrial parks and business premises. 

The Ayrshire Growth Deal Ayrshire Innovation Park at Moorfield is a project currently in delivery and is aiming to address this.

Currently, three sites are being considered as part of this proposal. The former Auchinleck Academy site, which is in council ownership, the Coalfields Regeneration Trust, and the 9 Community Councils (9CC) are looking into opportunities for a joint venture on this site with the council for business and industrial use. 

This is specifically for a local enterprise hub, offering affordable, flexible workspace for small to medium-sized businesses, social enterprises and start-ups.

In Newmilns, Newmilns Regeneration Association (NRA) is looking into options for the former Vesuvius site with assistance from the council.

The site has been used for industry since the early 1960s when Vesuvius began making crucibles in Brown Street, Newmilns.

In Kilmarnock, the proposal will explore options for further expanding the site of the Ayrshire Innovation Park at Moorfield - which is currently under development -  with there being major commercial interest in the units before construction.   

Councillor Douglas Reid, leader of East Ayrshire Council, said: “East Ayrshire has a lot to offer investors as a business location, but we need high-quality affordable premises to attract these investors in the first place.

“Through continued investment in business and industrial premises, we can facilitate and enable the readjustment of the market in Ayrshire, and I very much look forward to receiving the results from the feasibility studies in due course.”

Next year, the studies will be completed and will give recommendations on preferred development options, indicative costs, delivery arrangements, viability and funding opportunities. 

As of yet, no commitment has been made to a particular ownership, partnership or delivery model. 

In due course, the findings will be reported to Cabinet. 

It is estimated that the value of newly built premises in East Ayrshire is typically around 30% of the value of total build cost, despite evident demand, according to the council’s ‘Commercial Industrial Units Brief’ for Auchinleck, Newmilns and Kilmarnock.