The future of commercial space in Coastal West Sussex

By Caroline Wood, Director of the Coastal West Sussex Partnership

The pandemic has had a profound impact on the way we work. For many employees, the home office and video meetings are here to stay, and businesses are reconsidering what they need from an office. On the industrial side, demand for space has grown as the move towards internet sales accelerated during Covid-19. 

The Coastal West Sussex Partnership aims to help businesses grow and attract new companies to the area, reducing the need for long commutes and boosting our coastal economy. So how will changing work practices affect the landscape of commercial space – and how can space be used more creatively to benefit business and the wider community?

David Martin, Partner and Head of Sussex Coast at property specialists SHW, says flexibility is now the top priority for businesses renting commercial space.

He said: “What we’re seeing is companies that have a lease expiring soon taking the decision to downsize. 

“If you’re a landlord it’s about offering flexibility – maybe having a break clause, for example. We have to be much more creative. Rents have not really dropped, but flexibility is really key now.”  

While many companies have opted to downsize on office space, co-working hubs have seen demand increase since lockdown restrictions were eased, in part due to the flexible contracts on offer. 

Freedom Works, which has workspace hubs across Sussex, from Hove to Worthing to Chichester, saw its biggest growth across its coastal spaces this year, following the third national lockdown. Founder and managing director Jon Trigg believes that after months of working at home during lockdown, shared workspaces now have greater appeal due to the opportunities for collaboration, networking and knowledge-sharing.

He said: “Not everybody has a house that’s conducive to working. We position Freedom Works as more than a roof over your head: somewhere you can work, but importantly somewhere to collaborate. 

“The key USP is those coffee table conversations.”

Mat Hunter, Co-CEO at Plus X Innovation Hub coworking space in Brighton, added that companies not only value the sense of community in a shared workspace – especially after lockdown – but increasingly want to access business support and specialist facilities inside an attractive space. At Plus X Brighton, companies can connect with academics and access research through the BRITE support programme, a collaboration with the University of Brighton, and facilities also include a podcast studio.

Mat said: “For establishing businesses to grow, they need flexible office space but also the best support programmes and facilities. 

“It’s that wrap-around support that’s really important – seeking support for growing your business should be normal. People come into the space and are very energised by the knowledge-sharing.”

Jon added: “There’s a higher chance of success when you’re working around peers giving you support and encouragement. These spaces provide a better chance for start-ups to succeed because it’s a better incubator space to grow.”

Despite the rise of the home office and flexible co-working spaces, David Martin says rents for office space are unlikely to change in the short term, and new spaces are needed to attract new or expanding businesses to the coastal strip. 

He said: “Probably what you’ll find is some office buildings will go to residential use. 

“That’s no bad thing as it means developers will build brand new buildings, which is what companies want now – air conditioning, raised floors and good connectivity. 

“You need to have the infrastructure to attract new businesses. Communication between the likes of local authorities, economic development officers and businesses is key.”

On the industrial side there is also a pressing need to develop new spaces, as demand has exceeded supply. David added: “The industrial sector is one that has really blossomed throughout all this. 

“All across coastal West Sussex rents for these spaces have climbed. But there’s very little physical availability and until new sites are developed, that’s going to put pressure on the market which will affect local businesses.

“With retail, landlords have had to readjust the level of rents and that has definitely helped businesses. Often it’s the small local ones which have replaced the big retailers which have gone.”

To support companies’ future growth and make the Sussex coast more attractive to employers, Jon argues we must transform dormant units on the coast into modern workspaces.

He said: “It’s the unlocking of these buildings that could make a difference. In Shoreham hundreds of new houses are being built, but there’s nowhere to work.   

“We’re not going back to segmenting, with the office space over there, the retail space somewhere else and another area for where you live. Communities are more homogenous now, and that’s the way people integrate.”

Mat added: “I think it’s about understanding the different needs of work. Really what the flexi-space offers is the carefully designed infrastructure, but also the flexible business model. 

“It’s space as a service.”

For more information, visit https://coastalwestsussex.org.uk.