Bristol Office Demand

A recent report from Savills concluded that Bristol experienced a solid year for office market demand in 2017 with 611,000 sq ft of office space taken, 6% above the long term annual average. 57% of take up was signed for during the second half of 2017.

This was driven by Dyson taking 29,000 sq ft with University of Bristol’s letting 27,000 sq ft at 1 Cathedral Square.
The report identifies the recent Simmons & Simmons signing for 27,000 sq ft at Aurora, Finzels Reach as a key move. The 95,000 sq ft speculative Finzels Reach scheme is now 40% pre-let with competition for space intensifying among tenants for the remaining floors.

Bristol’s TMT (Technology, Media and Telecoms) sector took 134,000 sq ft of the office space taken last year, 22% of the city centre total. Savills highlight that 28 of the 30 deals were on floor sizes below 10,000 sq ft, indicating the depth of demand within the sector.

Take up in Bristol’s out of town market reached 425,000 sq ft, 34% above the 10 year average. This was largely driven by Babcock signing for 86,000 sq ft at 100 Bristol Business Park during the final quarter.

Office requirements remain robust in the Bristol market, and Savills expect take up to again reach circa 600,000 sq ft during 2018, 10% above the 10 year annual average.

Metropolis is tracking around 30 tenants with office requirements for Bristol, with a further 50 companies approaching decisions on whether to search.

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Requirements on the Rise?

Over the first two months Metropolis Property Research has noticed a small rise in the numbers of office occupiers launching new searches for office accommodation.

Some examples researched and published over the past week include:

  • An IT support firm, has told Metropolis that it is currently searching for around 200 sq m (2,200 sq ft) of office space within the South Bank area of London. The firm is planning to move from its current base in the Autumn of 2018;
  • A City of London-based energy consultancy, has told Metropolis that it has appointed an un-named property agent to advise on relocation or lease options in central London, ahead of a late 2018 lease break option. The company currently occupies 465 sq m (5,010 sq ft) of offices with about 35 staff;
  • A computer consultancy firm, has told Metropolis that it is currently searching for around 475 sq m (5,100 sq ft) of office space in the Maidenhead area. Staff advise that a move date has not been set, but that it will likely take place around Autumn 2018.;
  • An energy exploration company, has strongly hinted that it is considering launching a search for alternative London West End offices in 2018;
  • An IT consultancy firm, has told Metropolis that it is currently searching for around 220 sq m (2,400 sq ft) of office space in Bristol. A senior contact has stated that an ideal move date would be around October or November 2018;
  • A Leeds headquartered print management company, is planning to open an office in London by 2020;

Metropolis researches around 140 new office requirements each month in the UK, plus hundred of other companies pondering move decisions and agreeing lettings.

4000 office moves for 2018-19

Metropolis has broken new records after 7,200 office business leads were published in 2017. If all the office space contained within those leads were added together the total would top 200 million sq ft.

Covering office deals agreed, companies searching for space, those with potential requirements and a small number of key speculative schemes, the 7,200 leads covered the whole UK from the tip of Cornwall to the north of Scotland. Office sizes ranged from 1,500 sq ft for 10 staff to Google’s new 800,000 sq ft London HQ.

Key points:

  • 2,700 company office moves confirmed to have completed in 2017;

 

  • 3,200 office moves are planned for 2018 and 890 office moves already planned in 2019 or later;

 

  • 3,000 companies, including 1,300 with ‘identified requirements’ expect to be making property decisions in 2018 and 2019;

 

IT and media services is the largest sector (800 leads) followed by financial services (600 leads) and professional, including large numbers of accountants and law firms (450 leads). Although the leads are spread over all UK regions, the size of the London office market, means that over 40% of the leads feature relocations, both scheduled and planned in central London. All leads include contact names, telephone numbers and 75% have email addresses, many of which are specific to the decision maker.

Metropolis remains the largest specialist provider of market intelligence led, office market business leads.

Recent research by Metropolis concluded that a conservative estimate of ‘live’ business opportunities on the database in recent months exceeded £1bn of business.

If you would like some information on flexible Metropolis subscription packages or to discuss a trial, then please email Simon at simon@metroinfo.co.uk

 

Office Moves Planned in July

Metropolis ran 580 business leads on ‘office movers’ in the month of July 2017. If all reported moves were added together the total would exceed 16 million sq ft of office searches and transactions, researched by Metropolis’ unique market led intelligence research team. London was the largest region with 247 leads during month, but there were also strong showings from the South East (63) and North West (62), Scotland (44). IT services and financial were the two largest business sectors planning relocations or agreeing moves during the month.

The business leads covered the whole UK and provided details of the size of the office occupier, its likely move dates, a description of the reasons for the move, its business sector and full contact details including an address for written inquiries, at least one telephone number and in most cases an email address. Some of the largest planned moves and top picks amongst the 580 July leads. included those on Citi (Citigroup), HMRC, Credit Agricole and WeWork.

The July 2017 leads included 200 ‘identified requirements’. Which means that the company confirmed to researchers that it has current or future plans to search for alternative office space. Of these 200 searches, 134 were new office searches, not previously notified to clients.

The most recent research also included 130 ‘potential movers’ which were mainly longer-term leads on occupiers, considering a relocation, but have yet to make a final decision on whether to search.

Most of the remaining stories covered companies that have signed for new office space and have set a move date, including some large pre-lets and companies inviting tenders for fit-out contracts. The shortest planned move date is just over a month away, whilst the longest was late 2020.

If you would like some information on flexible Metropolis subscription packages, then please email Simon at simon@metroinfo.co.uk

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Cityoffices.net, the sister property leads service to Metropolis, saw a further 33 stories posted in July, covering new development opportunities planning applications, consents, construction starts and development teams in London and major cities. The database now covers over 200 office schemes in the pipeline for construction starts in 2017-2020.

For more information on Cityoffices, email Andy at andy@metroinfo.co.uk

Bristol Bounces Back

A recent report by Lambert Smith Hampton on the Bristol office market report, reveals that in the final quarter of 2016 transaction levels reaching almost double those of the previous quarter. Take-up reached 267,200 sq ft in Q4 2016, compared with 134,400 sq ft in Q3 2016. Strong demand has led to continued pressure on office supply in the city centre.

City centre take-up was boosted by HMRC’s pre-let of 107,000sq ft at Salmon Harvestor’s 3 Glass Wharf, which was the largest Bristol office deal of the year. Total take-up has exceeded the five year average. There were three deals for new office space in Q4 2016: Foot Anstey at 2 Glass Wharf, The West Wing Glass Wharf and JLL at 31 Great George Street.

The second-hand city centre office market has also seen increased levels of take-up with several deals of over 10,000 sq ft, including lettings at South Quay House, Redcliff Quay and the purchase of Victoria House for owner occupation. Companies recently signing for space in Bristol and reported by Metropolis included Regus, Unite and SmithCorp.

The out of town market saw annual take-up of 308,380 sq ft, including the letting of 100 Bristol Business Park to Babcock.. The other key letting of 30,430 sq ft was to Highway England at 930 Aztec West.

Construction of the 95,000 sq ft of Cubex’s Aurora office scheme at Finzels Reach is now well underway, with completion expected by the end of 2017. While the 53,000 sq ft refurbishment at Castleforge’s One Cathedral Square, is due to complete in May 2017.

Metropolis is tracking around 40 office requirements in Bristol and some 50 companies approaching lease events that could result in a relocation in 2017 or 2018.

 

Best quarter for Aberdeen

Recent research from CBRE reveals that in the third quarter of 2016, office lettings in Aberdeen reached 66,174 sq ft. This total made it the best performing quarter in Aberdeen so far this year.

The cumulative Aberdeen take-up volume for the first nine months of 2016 was 152,683 sq ft, below average levels for the end of the third quarter. The low oil price continues to impact on office demand although a recent increase in crude prices to $51, is signalling a possibly better year ahead.

The largest Aberdeen letting to take place in Q3 saw serviced office operator Citibase acquire a 22,000 sq ft west end office building at 9 Queens Road. Within the city centre, another floor of nearly 6,000 sq ft has been let to HM Ministry of Justice at AB1, Orega, the serviced office provider, has signed to take 26,000 sq ft on the 1st and 2nd floors at the under construction, 9-storey ‘Silver Fin’ office scheme in Aberdeen.

Metropolis is tracking around a dozen office searches and potential searches in Aberdeen.

Total office space available at the end of the third quarter reached a new high of 2.45m sq ft, which is a year-on-year increase of 45% from Q3 2015. Muse’s 170,000 sq ft Marischal Square development is also under construction and will complete in Q2 2017.

Prime office headline rents in Aberdeen are unchanged at £32 per sq ft, with an absence of recent prime transactions to challenge the current level.

City of London Boost

An October 2016 City of London office market survey by property adviser Ingleby Trice recorded 39,183 sq m (421,760 sq ft) of take-up in the core area: “a healthy rise of 35% over September and a material 76% rise over the 6 monthly average of 22,233 sq m (239,311 sq ft)”

The surveyor says say that October’s City take up was the highest since April and the highest since the June referendum. October’s take up was also this year’s second highest at just over twice the total in October 2015 and includes:

  • 8 Finsbury Circus, EC2 – 17,460 sq ft on 7th floor – placed under offer to an incoming tenant (see Metropolis database for further details).
  • River Building, Cannon Bridge, EC4 – 51,500 sq ft at Riverside 1 – placed under offer to Deliveroo who is moving from the West End. The refurbishment is due to complete in Q1 2017.
  • Cannon Place, 78 Cannon Street, EC4 – 83,937 sq ft on pt 7th & 6th floors to an as yet undisclosed occupier.
  • 99 Gresham Street, EC2 – 17,250 sq. ft on G & 1st floors – placed under offer to a, so far, mystery tenant.
  • The Scalpel, 52 Lime Street, EC3 – 46,983 sq ft on 2nd to 4th floors – placed under offer to an insurance tenant (see Metropolis for further details). The scheme is a new Grade A office tower development due to complete in Q4 2017;
  • 15 Bishopsgate, EC2 – 62,884 sq ft in the entire building – placed under offer. The office development due to complete in June 2017.

October’s City of London fringe take up of 43,194 sq m (464,940 sq ft) represents a significant 31% rise over September and was this year’s highest . Deals included:

  • C Space, 37-45 City Road, EC1 – 15,391 sq. ft on pt 3rd & 4th floors to NeuLion;
  • White Collar Factory, 100 City Road, EC1 – 25,360 sq ft on 14th & 15th floors – placed under offer to an incoming tenant (see Metropolis for further details);
  • 1&2 Paris Gardens, SE1 – 62,425 sq ft on LG, G & 1st to 4th floors under offer to a serviced office tenant;
  • The Blue Fin Building, 110 Southwark Street, SE1 – 65,000 sq ft on 6th & pt 7th floors placed under offer to a banking tenant (see Metropolis for further details);
  • Southbank Central, Vivo, Stamford Street, SE1 – 72,080 sq. ft on 1st to 3rd floors – placed under offer to an incoming tenant (see Metropolis for further details).

Details of these deals and many other impending London moves are to be found on http://www.metroinfo.co.uk