Recent research showing Brighton & Hove to be a UK property hotspot fails to take into account specific local factors – and conversely the city is facing a severe shortage of commercial real estate, according to property consultants Stiles Harold Williams.
Although the city has several proposed high-profile developments, such as One Preston Park and CityView these fail to meet the current demand for office space in a time of economic resurgence.
There are number of causal factors resulting in the current shortage, including:
· The geographic restriction of Brighton & Hove between the sea and downs
· The relaxation of Permitted Development Rights in 2013 – with outdated office space converted into much needed residential units
· Low rents relative to construction costs resulting in a tentative approach on the part of developers to create new office capacity from brownfield sites
Furthermore, since the financial crisis of 2007/8, there has been a reluctance by the banks to lend for new speculative office schemes.
Emma Hards, Associate at Stiles Harold Williams, said of the situation: “We are having to turn potential occupiers away because of the shortage. The overall property development picture may be rosy, but we are suffering from a lack of supply which needs to be addressed if the economy of the city and employment levels are to flourish over the next decade or so.”
