Brighton has always been a commuter hotspot. Within London’s sphere of influence, it takes around an hour to travel into either Victoria or London Bridge, with direct trains to Farringdon and King’s Cross too. For many, Brighton’s vibrancy and sea air make up for the time and cost of a longer commute. As more people shift to working in London just two or three days a week, we expect to see greater demand for homes and local, flexible workspaces in Brighton.

Around 4.5m season ticket holders travelled through Brighton railway station in 2018/19. A further 980,000 commuters travelled through Hove and Preston Park stations. Outside London, only Reading and Chelmsford stations had more commuters at 5.6m and 5.1m, respectively, albeit with much shorter journeys into the capital. Far more season ticket holders pass through Brighton than any other town or city with a circa 60-minute journey time to London.

The impact of Covid-19 will change people’s commuting patterns. Previously a 1.5-hour door-to-door commute, twice a day for five days a week may have been too much for many. However, the same journey may be more manageable if done just two or three days a week; a compromise worth making for a life by the seaside.

A June survey of Savills clients illustrated younger households, particularly those in the South East and London, are more likely to reconsider their work/life balance due to the experience of Covid-19. We predict this will increase demand for homes and local, high-quality workspace in commuter towns such as Brighton.

Strengthening as a hub, not just a spoke

Earlier this year we surveyed 65,000 of our contacts to better understand the future of the office sector. This highlighted the potential for some businesses and employees to move towards a 'hub and spoke' model, with employees working more regularly in the 'spoke' and occasionally in the 'hub'. However, an acceptance of changing working patterns, preferences and technology solutions, in a post-Covid-19 world, suggests that places like Brighton will also become a stronger ‘hub’.

Before lockdown, working from home was much more binary: either you worked from home or you worked full time in the office. What has emerged since is the need for a hybrid solution that gives employees more choice. As shown in the chart below, the Savills Office FiT survey supports a stronger work-from-home ethic for those living in the South East of England.

The office. What is it good for?

Once Covid-19 is behind us the big question is whether we will all go back to a ‘normal’ office mode. The answer is most likely 'no'. Offices and the work performed within them has been evolving for many years. The pandemic has accelerated adoption of technology, speeding up this evolution. The Savills Office FiT survey highlights the future role of office space going forward.

Our notion is that the office has to be a place that employees need to come to, not just want to come to. A much greater proportion of responses say the office is best at meeting the need for networking, collaborating, management, mentoring and for advancing careers. A sense of community and belonging, both inside and outside of the office building, is a vital ingredient for an even more successful Brighton. The office has a role to provide this in terms of its location, fit-out and public realm.

So, what’s the role of commercial office workspace?

Brighton often features as a leading UK ‘tech city’. Its attractiveness as a place to live, work, and play let it punch far above its weight. Other prominent ‘tech cities’ include much larger towns and cities such as Reading, Manchester, London, Edinburgh, Leeds and Birmingham. These are clearly much bigger commercial office markets, which provide the potential for companies to expand and recruit effectively.

Brighton has just 200,000 sq ft of office space available, around two years’ worth of supply. Permitted development has eroded the office stock further, as developers convert older offices into residential. This lack of stock means a lack of choice for future occupiers. Brighton’s office market has consistently seen around 100,000 sq ft of take-up. In our view, this has been limited by available stock, not occupier demand.

The Plus X Brighton development, delivered by U+I in 2020, provides over 50,000 sq ft. Another key scheme due for completion in 2021 is the former AMEX headquarters known as Edward Street Quarter developed by First Base with Patron Capital. This development will provide 110,000 sq ft, the largest office scheme delivered in Brighton for 25 years.

Which sectors are the ones to watch to fill the office workspace?

Brighton will remain an attractive location for traditional sectors such as financial and business services, as is the case in other major cities throughout the UK. Big corporate relocations will also remain important. However, equally important are the more emerging sectors in digital, technology, and health. Understanding the real estate needs of the burgeoning sectors that will create the jobs of tomorrow will help Brighton remain a lifestyle and commercial choice for employers and employees.

Brighton is arguably ahead of the curve on this front, with the city involved in many of these evolving sectors. It has a strong academic ecosystem, with both the University of Sussex and the University of Brighton. Local businesses have a track record raising investment capital, particularly in the digital and technology sectors. Together with new commercial development and the quality of its workforce, Brighton’s future looks bright.

The Brighton area has seen companies attract capital that are involved across a range of business sub-sectors. 2020 has seen over £500 million of capital raised by companies headquartered in the city, 43% above the 10-year average. This will help further drive future demand for commercial floor space in the city.

The digital sector is a particular strength, driven by both capital injections and government funding in the form of the Digital Catapult. The latter focuses on immersive and network sectors. This has led to significant capital being raised in the augmented reality, mobile, gaming and software sectors. Creating workspace designed to cater for the needs of these sectors and homes to accommodate their workers will be critical to retaining them in Brighton.

View all of our latest Brighton Cross Sector research here.