Bristol office take up at strongest level since 2007

14 November 2016

Take up of Bristol offices has reached 515,699 sq ft (47,910 sq m) in the first three quarters of the year; the highest level since 2007, according to Savills. In its latest research the international real estate advisor notes that the third quarter of 2016 saw take up reach 134,408 sq ft (12,486 sq m), compared to 131,162 sq ft (12,185 sq m) in the third quarter of 2015. 

The firm predicts that take up in the city will reach 800,000 sq ft (74,322 sq m) by the end of 2016, 50% above the five year average. TMT and energy sectors have been the most active business sector in Bristol, with TMT occupiers accounting for 31% of total take up in Q3 alone. Savills expects to see energy firms continue their activity in the city following the approval of Hinkley Point in September with a prime example being OVO Energy who took 23,000 sq ft (2,136 sq m) in one of the biggest deals of the quarter.

Total availability has fallen 5% since the start of the year and at the end of the third quarter stands at 855,000 sq ft (79,432 sq m), with Grade A availability in the city centre currently at 115,000 sq ft (10,683 sq m).

Christopher Meredith, director in the business space team at Savills Bristol, says: “Bristol continues to perform strongly in an uncertain market. The current squeeze on levels of stock has led developers to concentrate on high quality refurbishments, with around 300,000 sq ft either complete or expected to complete within the next 12 months. This has had a knock on effect on the rental differential between new build and refurbished space in the city centre which has narrowed to £1.50 per sq ft.”

As of the end of the third quarter, office investment in Bristol reached £270 million, the highest levels for this stage in the year  since 2006 and 89% above the five year average according to Savills data.

Andrew Main, director in the investment team at Savills Bristol, adds: “We are seeing continued activity in Bristol, with overseas investors being particularly active and capitalising on the weaker pound. The city is seen as a good investment option, with strong demand from tenants and limited levels of available Grade A stock. These fundamentals will ensure investment levels remain high until the end of the year.”

 
 

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Key Contacts

Christopher Meredith

Christopher Meredith

Director
Office Agency

Savills Bristol

+44 (0) 117 9102 216

 

Andrew Main

Andrew Main

Director
UK Investment

Savills Bristol

+44 (0) 117 910 2207