Bristol market on the Rise

A recent report on the Bristol office office market from property consultant Colliers International revealed that office take-up in Bristol in the first half of 2016 reached 380,000 sq ft, which is a substantial 43% up on the first six months of 2015. Bristol is on track to reach take up of 800,000 sq ft by the end of 2016, well above the five year average of 533,000 sq ft.

The strong figures include two recent deals: EDF Energy taking 81,000 sq ft at Bridgewater House, Direct Line purchasing 63,000 sq ft at The Core and 28,000 sq ft in let at Narrow Quay House to Frazer Nash Consultancy. Grade A (new and recently refurbished space) take-up was 123,570 sq ft.  Vacancy levels remain at an all-time low – 7.3% (Bristol) and 7.0% (Grade A) respectively.

Colliers say that Business Services represented 28% of total take-up for the first six months of 2016, while Energy and Utilities were the second most active business sector at 21%, although that 21% comprises
the EDF Energy deal only. The demand for space remains strong, with a good level of significant sized requirements actively seeking high specification centre city offices. HMRC has the single largest requirement of more than 170,000 sq ft.

Metropolis is currently tracking around 40 companies with searches underway in the Bristol area. In addition, around 50 medium/large companies are approaching lease expiries in 2017/18.

Tech and digital companies are also key drivers behind office demand in Bristol, with the BBC, IMBD (owned by Amazon), Hewlett Packard, Just Eat and Huawei all recently choosing to locate in the city

66 Queen Square was the last Grade A office scheme to be completed and only 3,500 sq ft is available. The 95,000 sq ft Aurora scheme, is the only office building under construction and will be delivered in Q4 2017. The 250,000 sq ft ‘Assembly’ office scheme is currently looking for revised planning consent, while the 184,000 sq ft ‘Aspire’ scheme is tipped for a late 2016 start.

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Manchester Office Market Summer 2016

Lambert Smith Hampton has just published its Q2 summary of the Manchester office market.

Manchester city centre office take-up for Q2 2016 reached 218,400 sq ft bringing the total for the first half of the year to 416,110 sq ft. LSH say that a number of large scale transactions are expected to complete in the second half of the year, which could lead to a year end total of 1m sq ft, close to the 5 year average.

Recent transactions included 11,000 sq ft to Mazars at One St Peter’s Square, 33,000 sq ft to the Co-op Bank at Martins House and 16,000 sq ft to Ericsson at MediaCity.

Recent Manchester pre-lets have included:

1 Spinningfields: PWC – 49,400 sq ft
Two St Peters Square: EY – 41,630 sq ft
XYZ: Global Radio – 16,670 sq ft
XYZ: Shoosmiths – 32,000 sq ft
XYZ: NCC Group – 60,000 sq ft

Swinton Insurance is under offer on 160,000 sq ft at 101 Embankment, Freshfields are due to complete imminently on 80,000 sq ft at New Bailey, DWP have a 80,000 sq ft Manchester requirement and PwC are being linked to taking further space at 1 Spinningfields.  There has growth in demand for companies looking to move operations (called northshoring) from London, for example law firm Freshfields, as well as Lonza and Escada opening new city centre operations.

Metropolis is also monitoring over 60 named Manchester office requirements from a wide variety of companies such as the likes of AJ Bell and Weinberger, as well as over 100 approaching lease expiries in late 2016 and 2017.

There is just over 1m sq ft of new office space under construction in Manchester, including schemes such as English Cities Fund’s 190,000 sq ft Two New Bailey and Ask Real Estate’s 164,000 sq ft 100 The Embankment.