Bristol office market revitalised20th October 2014

The Bristol office market has shown an increase in occupier enquiries over the past few months according to commercial property consultancy GVA, who said that the Bristol market will end the year on a positive note due to a number of significant deals.

Bristol has already overtaken the annual average for the previous five years; a trend that has also been emulated by Glasgow and Manchester.

High levels of occupier take-up during the third quarter of 2014 have been reported across the UK's nine major city centre office markets and are set to outshine the level of annual take-up in 2013, which was extremely strong.

The star letting in Bristol since 2008 is 1 Rivergate. This 69,716 sq ft deal to OVO Energy, which has exchanged contracts on the property, is due to complete next quarter. 

Other key lettings include two deals at Kings Orchard - 17,000 sq ft to Parsons Brinkerhoff and 15,000 sq ft to Tribal Group. Mapfre is also close to signing M&G's 1 Victoria Street, which will provide the company with 48,000 sq ft.

Two speculative developments have received occupier interest. PWC is under offer on almost 30,000 sq ft of 2 Glass Wharf at Temple Quay Central, at a record rent of £28 per sq ft. Skanska's 66 Queen Square, which is due to be completed next year, is likely to be taken by KPMG, which has a long running 45,000 sq ft requirement.

Further schemes with large amounts of Grade A space include 78,000 sq ft at Temple Back (although the top floor is possibly under offer) and 78,000 sq ft at Bridgwater House, Finzels Reach.

Richard Kidd, Director Office Agency in Bristol said: “The level of occupier activity is underpinning decisions by a number of funds to move into the regional city development markets such as Bristol, and this is clearly now paying dividends with much of the new Grade A space being let at or before completion.

“Bristol is one of the few cities where we have seen pure speculative development, although this still remains difficult to achieve, except where the occupational demand story is absolutely solid.”