Quality office space is still in short supply in Brighton and Hove and record rents are being paid for good accommodation.

In its quarterly report, the Brighton office of Stiles Harold Williams said office rents had risen an average of 2.8 per cent in the city in the past year.

A rental of £17 per sqft at Lanchester House broke city records last month while owners of Nile house in The Lanes were asking £17.50 per sqft.

Refurbished offices at 175 Preston Road are being offered at £18 per sqft.

Supply of premium accommodation remained low at 80,000 sqft available, equal to 1.6 per cent of the total stock. The average annual take-up for the last five years was 173,400 sqft.

The short supply would ease once the City Park scheme at Hove Park came to the market next year and with planning permission being granted for the 16-acre site at Brighton station.

Worthing rents were expected to rise due to a shortage of prime space but the report warned too much of a hike could restrict take up.

Sussex Police have recently taken offices in Chatsworth Road at £14 per sqft.

Keen interest has been shown in two buildings of more than 5,000sqft currently being marketed.

Office availability in Eastbourne was at an all time low at 1.4 per cent of the total stock.

This bucks the national trend which, according to commercial property firm Cushman & Wakefield Healey & Baker, has seen a fall in rents and demand.

David Hutchings, head of European research, said: "The threat of war and the large-scale financial scandals of last year have marred the world's economies.

"This has had a knock-on effect on the demand for offices."

Tuesday March 11 2003