Bristol Office Market Picks Up

Recent research by JLL and CBRE reveals that the Bristol city centre market had a slow start to 2019 with some 58,140 sq ft of city centre office deals representing the lowest level since Q1 2009. The only deal over
5,000 sq ft between January and March, was Forrest Brown taking 23,207 sq ft of space at Templeback in the city centre.

However, recent research by Metropolis shows the pace picking up in Q2.  Turner & Townsend signed for 7,000 sq ft at Desklodge House, Historic England took 6,000 sq ft at Finzels Reach, Efinor took 5,000 sq ft at Whitefriars, Unite Integrated Solutions is taking 27,000 sq ft at South Quay Temple Back and Brunel Studios taking 4,000 sq ft at Petherton Road. Ashfords Solicitors, the Bristol-based law firm, is understood to be under offer to take 1,580 sq m (17,000 sq ft) of new offices at the under construction ‘The Assembly’ office building in Temple Quarter.

Out of town, there have been large lettings of 40,000 sq ft to St James Place Wealth Management at 2610 Aztec West,13,000 sq ft to Elbit Systems UK at 600 Aztec West and 13,000 sq ft to Integral at Waterside Drive have boosted the totals.

JLL say the outlook for the remainder of the year is more positive with a quarterly increase in overall registered demand from a broad range of business sectors, including flexible workspace operators.  The overall vacancy rate remained stable during Q1 at 4.3%. Bristol continues to have the lowest New Grade A vacancy rate of the large provincial city office markets at just 0.1%.

The development pipeline is responding to this with AXA’s Building A, Assembly (200,000 sq ft) and RLAM’s 90,000 sq ft The Distillery both under construction on a speculative basis. Bristol currently has a number of schemes in the pipeline totalling up to 850,000 sq ft. Some of these schemes could be delivered as soon as 2021. Headline prime rents remain stable at £35.00 psf.

Metropolis Research is following up on 200 lease expiries in Bristol due in the next two years.

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