Bristol Office Market Looks Forward

A recent report on the Bristol office market by Lambert Smith Hampton suggests that although letting activity slowed in Q3 2015, there is some optimism for 2016, as the number of new requirements rises sharply.

During Q3 2015, some 195,000 sq ft of lettings were concluded in Bristol including moves by Civica, Northgate, EE, Meanwhile Creative , Optical Express and TMP. Total office take-up for the year is nearly 600,000 sq ft, but this is down on the 770,000 sq ft over the same period in 2014. Recent office take-up in Bristol has been led by Technology Media and Telecom (26%) and Professional Services (24%), followed by Construction & Engineering (14%) and Business Services. There have been a higher than usual proportion of Bristol office deals below 5,000 sq ft in autumn 2015.

Amongst the companies with requirements being tracked and spoken to regularly by Metropolis are AXA, EDF, Foot Anstey and Babcock. LSH point to 40 new inquiries in the last 3 months. Local agents are tipping the media sector as likely to be a good performer in 2016 and we have recently seen Green.TV and Mendip Mediai open bases in Bristol. Recently R&D has become a growing business sector within Bristol city centre and occupiers such as ADP and Oracle are expanding their operations.

Some 600,000 sq ft of speculative office schemes could start on site in Bristol in 2016, including refurbishment of Veale Wasbrough Vizards’ former offices at Orchard Court, Orchard Lane, Bristol. Overall office vacancy rates are around 6-7%.

Looking ahead, there are some 200,000 sq ft of large requirements in Bristol which are likely to find offices over the next 12 months, with a tier of medium sized searches which could double that total.

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