Brighton Commercial Property Market Update 2026

Brighton’s commercial property market remained resilient in 2025, despite a slight slowdown in the office sector during the second half of the year.

As a major commercial hub in the South East, Brighton continues to attract businesses across the financial services, medical, creative and technology sectors.

Occupiers are drawn to well-connected, vibrant locations that offer more than just floorspace, and Brighton delivers strongly on that brief.

In this article, Steve Berrett, Agency Partner for the Gatwick region at Vail Williams, reviews the recent performance of the Brighton & Hove office market, exploring key transactions, investor appetite and what lies ahead.

The city benefits from a strong innovation-led economy, underpinned by a highly educated workforce shaped by two leading universities and a well-established professional services sector. Banking, financial and insurance businesses alone account for around 40% of the local market.

This depth of talent, combined with Brighton’s distinctive lifestyle offer, continues to attract skilled professionals and encourages long-term retention. A well-connected innovation ecosystem, supported by organisations such as Sussex Innovation and the Brighton Chamber of Commerce, provide sustained backing for SMEs and start-ups, ensuring a consistent pipeline of high-quality talent.

Its two top-ranked higher education institutions, the University of Brighton and the University of Sussex, which together foster a diverse and highly skilled talent pool, provide a direct pipeline of talent into the local economy.

Excellent rail connectivity to London, proximity to Gatwick Airport and an exceptional leisure offer, including more than 400 independent cafés, bars and restaurants across Brighton & Hove, further underpin business confidence and reinforce the city’s appeal as a place to live and work.

These fundamentals are expected to continue driving developer, occupier and investor interest throughout 2026.

2025 Brighton office take-up slowed

Following a strong year in 2024 which saw office take-up in Brighton hit over 100,000 sq ft, up 20% from the previous year, 2025 was down slightly on this level.

Despite a strong start which saw take-up reach 60,000 sq ft in the first half of the year, by the end of the year, just 85,000 sq ft floor space had been let.

This reflected the cautious business sentiment that took hold as the year went on, particularly as the Autumn Budget and business rates Revaluation 2026 approached.

Despite this, prime headline rents for grade A office space in Brighton & Hove remain stable at £44.00 psf, with Portland Building in central Brighton leading the way.

The Bright commercial property has already shown strong momentum in 2026. Global consultancy firm, Capgemini, recently signed a landmark 10-year lease on 25,000 sq ft for the entirety of Block A, at Hove Central.

“Representing Brighton and Hove’s largest office deal for nearly three years, it features an option to extend to 20 years and establishes a new rental benchmark for the Hove area, proving that high-quality, well-connected Grade A space continues to attract long-term corporate commitments,” commented Steve.

This focus on office quality was the driving force behind the market in 2025, with particular interest in space that was already fitted out, where occupiers interested in Grade A office space in Brighton could benefit from reduced or no up-front fit out costs.

Like Hove Central, Victory House, is also injecting much-needed Grade A stock into the market, though currently only 30% of the 550,000sq ft of available space is considered Grade A.

Rising freehold and investment opportunities

Investor interest in Brighton commercial property remained strong throughout 2025.

“Brighton’s distinctive character, strong fundamentals and long-term potential are driving a clear step-change in investor and occupier confidence here,” commented Steve. “This is reflected in the number of landmark office and commercial assets sold or brought to market during 2025.”

Investor appetite for best-in-class offices remained evident with the sale of Brinell Building in March 2025 to French real estate fund Iroko Zen for approximately £27 million, reflecting an initial yield of 7.5%.

Brinell Building is considered a best-in-class asset, including a BREEAM “Excellent” and an EPC A rating. The transaction underlines continued demand for prime South East office stock in well-established centres such as Brighton.

Asset repositioning in Brighton

Confidence in the city centre was also reinforced by IKEA’s acquisition of Churchill Square for circa £145 million, alongside its occupation of the former Debenhams unit.

Nearby, the Moretons Investments purchase of Imperial Arcade was equally significant, transforming a near-derelict asset into a repositioned boutique covered shopping arcade, contributing positively to the wider retail environment.

At Sovereign House, a large commercial refurbishment is underway, including significant changes to its roof structure to create a high-class rooftop communal amenity terrace for tenants, whilst aiming to improve the buildings overall EPC rating.

Just up the road, Trafalgar Place has been granted planning permission for a two-storey rooftop extension across four office buildings, which will form new flexible workspace, social and breakout areas.

Continuing the theme of repositioning, Vail Williams advised on the sale of 10–11 Pavilion Parade on behalf of the University of Brighton, with the landmark building acquired by Safestay Plc for £2.25 million.

A popular tourist destination, Brighton is an easy journey from London and attracts over 11 million visitors per year, providing an excellent opportunity for hotels and short stay accommodation.

Safestay Plc, one of Europe’s largest hostel groups, has received planning approval to develop the 15,300 sq ft former education building into a 170-bed hostel 15,300 sq ft. Safestay will invest a further £1.0 million in the conversion of the property.

Steve adds: “Vail Williams continue to provide agency services and strategic consultancy to the University of Brighton, including recent lease advisory support in relation to the UK’s largest indoor cricket academy at Falmer. 

“The One Square Cricket Academy is in partnership with the University and further reinforces Brighton’s growing profile as a national hub for sport, innovation and education.”

Brighton commercial property market outlook for 2026

While constraints around housing supply, limited development land and high living costs remain, Brighton’s commercial property market continues to demonstrate resilience.

“Looking ahead, investor focus is shifting towards redevelopment and repositioning opportunities, despite some yield compression expected on the back of rental growth. Interest will continue to focus on refurbishment-led strategies to close the quality gap,” Steve noted.

In the meantime, as hybrid working patterns continue to evolve, occupiers will continue to prioritise office space boasting flexibility, quality and strong ESG and energy efficiency credentials.

“At Vail Williams, we are supporting this through a combination of planning advice on strategic policy and long-term opportunities, alongside more immediate alternative-use and redevelopment strategies for individual buildings and developments,” added Steve.

With an integrated property service spanning acquisitions, disposals, valuation, planning and building consultancy, Vail Williams is actively shaping the next phase of Brighton’s commercial property market.

Business seeking commercial property, commercial space for rent or investment opportunities in Brighton and the wider Sussex area can contact our multi-disciplinary property agents for expert advice. Get in touch for more information.