Bristol’s offices sector is taking off with significant increases in activity both in and out of town.
While city centre deal sizes remain stubbornly below the 20,000 sq ft market benchmark, the number of transactions is almost double compared to this time last year and looks set to improve still further through the second half of the year.
Colliers International offices specialist James Preece said: “The increase in demand seen towards the end of 2013 has now translated into completed transactions.
“Despite the largest city centre transaction so far this year being only 16,500 sq ft, there has been a huge level of activity and far more transactions completed compared with the same period last year. This is the highest level of take-up for this period since 2008.”
He went on: “The overall number of deals in the first half of this year is up 38 per cent on last year, with just over 515,000 sq ft transacted.
“Activity is concentrated in the sub 10,000 sq ft bracket and deals are generally focused on secondary stock. Although we are seeing demand from a diverse range of sectors, there has been a further increase in requirements from the TMT sector.”
Meanwhile, out of town take-up was 110,000 sq ft, up a marginal 3 per cent on the first quarter, but up an astonishing 137 per cent up on the same period of 2013.
“The education sector has been active in Q2 alongside good demand from the tech, defence and engineering sectors.”
James Preece said: “Figures at the beginning of the year revealed continuing enthusiasm for converting older office buildings to student accommodation, with a significant number of owners going down that route.
“There are still a number of businesses which have already left or are about to leave these buildings and are on the lookout for new accommodation.”
He concluded: “The lack of Grade A office supply in the city centre has shifted the emphasis on to the secondhand and refurbished sectors. As a result, rents at this level are starting to edge up for the first time in six years.”
