A severe shortage of commercial property in Sussex is restricting economic growth.

A report by Sussex Enterprise said the county was facing a shortage of office space totalling 90,000sqm over the next five years with a potential cost to the economy of more than £400 million.

The report was commissioned to predict the con-sequences of the recent low investment in sites and premises in the county compared to the rest of the UK.

After consulting with members and the wider business community, the researchers showed 20 per cent of Sussex businesses felt inadequate premises were restricting their need to expand.

Sussex Enterprise calculated about 4,300 job opportunities that might have been created would be lost because companies could not expand adequately.

Director of policy Mark Froud said: "We want to use the results to begin a discussion with councils about making more space available for commercial development rather than residential properties.

"There is a shortage of good sites and inward investors need to be encouraged by increased availability.

"Fifteen per cent of Sussex businesses are considering relocating to other parts of the county in the next two years and one per cent may leave the county."

The shortage of office space is more pronounced in certain parts of Sussex.

The report predicted a shortage in Brighton, Lewes, Adur, Arun, Chichester, Horsham and Mid Sussex with a surplus forecast in Crawley, Worthing and Hove.

Supply and demand was expected to be broadly in balance in Eastbourne, Hastings and Rother.

Sussex Enterprise plans to discuss the findings with authorities across Sussex.

The idea is to work together to maintain a high level of economic growth in Sussex by laying down a detailed strategy about how much land will be allocated to commercial use.

Sussex Enterprise will produce a further report next spring outlining how the issues will be address-ed and make recommendations.

A report from monitoring group Spacia found one in six small and medium-sized businesses in the South had problems finding suitable business accommodation.

Spacia director Stephen Barrie said: "If commercial property owners adopt a flexible approach to tenants it creates a win-win situation, helping the businesses of both."