Anita Howarth sorts out fact from fiction in an area which suffers from a number of popular misconceptions.
Graham Greene’s Brighton Rock has left a legacy of images of a seedy underworld, dingy cafes and tacky seafront stores. Like Worthing, the predominant stereotype is that of fading gentility and an ageing population. But the council and businesses are fighting back.
Their envoy is Bhedco, a consortium of local business leaders and the councils of Brighton and Hove, which has been given a £15,000 budget to market the town. They began by commissioning Chesterton to survey outsiders’ perceptions of the area.
The image of Brighton as a retirement haven did not surprise Rob Lewtas, economic investment officer with Brighton council, but he is keen to stress that this is only partly true: “We do have a large elderly population, but we also have well above the national average of people between the ages of 15 and 34.” This is because a large student population is drawn to the East Sussex academic corridor.
Like many local agents, Lewtas was surprised to find that quality office space in Brighton was seen as expensive and in short supply. Michael Squire of Clifford Dann Commercial admits that there is a lot of inferior 1960s and 1970s space, but argues that this is also true of many other towns. Figures produced by David Walker of Richard Ellis indicate that there is nearly 400,000 sq ft (37,160 m2) of quality space, not including the 160,000 sq ft (14,864m2) in the Alliance & Leicester Building, Park View, Hove, or the potential space on South Downs Business Park in Lewes.
Misconceptions about the cost of space go back two years when lack of supply pushed quoting rents up to £20 per sq ft (£215.30 per m2). But Edward Flude of Monk Rawlings maintains that asking prices on space up to 10,000 sq ft (929m2) can now be as low as £10 (£107.60 per m2), which breaks back to between £7 and £8 per sq ft (£75.30 to £86.10 per m2) after incentives. This is borne out by the £12.50 per sq ft (£134.60 m2) plus 12 months rent-free achieved at Security Pacific House. Prices are slightly higher at South Downs Business Park, Lewes, where Halifax Building Society has taken a prelet at £14 per sq ft (£150.70 per m2). But Malcolm Mitchell of Stiles Harold Williams claims that these prices bear up well in comparison with Redhill, Crawley and Croydon.
Given that the survey identified that the financial sector and auxiliary services have a low opinion of Brighton as a business location, these recent deals carry a certain irony. This sector is already strongly represented in the town by TSB Card Services, Legal & General and Alliance & Leicester. American Express has its European, Middle Eastern and African operations headquarters in Brighton and, according to recent research, spent £22m at local suppliers in 1989, which amounted to more than 6% of the town’s GDP.
But, despite Bhedco’s campaign, Brighton still has its problems. The North Laine area, near the station, has been targeted for £2.8m single regeneration budget funding to deal with its redundant industrial stock and vacant land. Brighton and Hove councils have also applied for EU grants. Lewtas feels that grants can be a double-edged sword: “Grants are a valuable source of funding, which has proved helpful in places like Hastings, but they can also create a stigma.” Brighton agents are waiting to see the effects of the grant and their response has been cautious.
Grants may help, but time alone will determine whether Brighton can overcome its problems and improve the area’s reputation with outside investors.
The town’s image is not aided by its prime retail centre.The 1960s Churchill Square squats behind the washed-out beige of badly weathered concrete; the taxi-driver’s wife will not use its under-cover parking for fear of being attacked and, according to a local: “They bashed down lovely little sailors’ cottages to put up a white elephant.”
The centre’s unpopularity has been reflected in the tenant spread and local agents put the vacancy rate at the back of the scheme at around 60%. Jim Grant of SHW explains that rent levels are difficult to ascertain because there has not been a letting for some time.
In contrast, the front section of the scheme has benefited from its link with prime pitch Western Road where there are virtually no voids and zone A rents are £135 per sq ft (£1,453 per m2). This part of the scheme has strong tenants such as Mothercare, The Early Learning Centre, Habitat, BhS and Dixons.
Glynn Jones, Chief Executive of Brighton council has just announced an agreement with Churchill Square’s landlord, Standard Life: “There is going to be a major redevelopment of Churchill Square, which will become a focal point for regional shopping. Completion is due by Christmas 1995 and there are no planning objections.”
This action is likely to be welcomed by local agents. Squire argues that, historically, Brighton has always been a regional shopping centre, but its position is now being challenged by Crawley, Horsham,Worthing and Tonbridge Wells.
These two extremes of an oversupply of unwanted, and an undersupply of wanted, stock have brought very few deals to the market. The exception has been The Lanes, which has seen two lettings in Nile Pavilions at zone As of £50 per sq ft (£538.20 per m2) to Versace and Le Chef through Graves Jenkins.
The rabbit warren of lanes with niche retailers and quirky goods does recall the appeal of old Brighton – an aspect which both the council and local agents are keen to preserve. Fludes reports a fairly high occupancy rate, with all the units in Dukes Lane now let: “The Lanes has benefited from its tourist appeal and the council is keen to protect its unique character.” Agents are adamant that any redevelopment of Churchill Square must not threaten this.
