Savills have published their latest spotlight on Bristol offices showing that take-up in the 1H 2013 reached 443,700 sq ft. This is up 31% on the same period last year and up 10% on the long term average half year takeup figure of 406,400 sq ft.
65% of take-up occurred in the City centre which was boosted by Bristol City Council completing on 100 Temple Street, 71,000 sq ft of which was initially for their own occupation.
Availability stands at 2.3m sq ft, this is 6% down on end December 2012 levels of 2.4m sq ft.
Grade A supply stands at c. 275,000 sq ft which is a record low in recent years. Grade A buildings currently available in Bristol include, 84,000 sq ft at Bridgewater House, 78,000
sq ft at Templeback and 47,000 sq ft at 1 Victoria Street, the PRUPIM refurbishment is currently under construction and is estimated for completion in Q4 2013.
Top rents remain in the region of £27.50 per sq ft, tight supply of Grade A office space will uphold this going into 2014. Investment activity in 1H 2013 reached £69m, this is up 23% on volumes over the same period last year.
Savills Bristol prime yield stands at 6.5%. The increase of institutional demand means there could be inward movement on prime yields over the next six months.
You can download a copy of the full Savills report here.
