With a healthy level of deals in the pipeline, 2013 is looking to set the record of the highest take-up across the regional markets in five years, according to the latest market analysis from GVA, the UK’s largest independent commercial property adviser.
The Big Nine reports the regional city centre take-up levels totalled 1,126,000 sq ft in Q3, 10% above the five-year quarterly average.
In Bristol, city centre take-up has been well above average, recording 138,187 sq ft in Q3, compared to the five year quarterly average of 107,815 sq ft.
City centre and out of town combined in the nine GVA regional office centres recorded take-up of 1,737,000 sq ft in Q3, 7% above the five-year quarterly average. The city centre market made up 65% of this total while the out of town market recorded take-up of 611,000 sq ft, a 2% rise on the quarterly average.
Richard Kidd, Office Agency Director at GVA in Bristol comments: “Occupier confidence has made a welcome return in Bristol in Q3, and together with a similar situation in a number of other regional city centres, paves the way for the highest take-up in five years.
“We are now seeing the early signs of speculative development taking place with both Skanska and Salmon Harvester on site in Bristol. Earlier in the year we warned how the supply of Grade A office space in the city could start to come under pressure unless more speculative development was to come on-stream. The onset of work at 66 Queen Square and 2 Glass Wharf will bring over 150,000 sq ft of new Grade A supply to the market in 2015 and, if occupier demand returns as is expected, then these schemes will be well placed to benefit.
“For developers the mix of risk, viability and funding issues still remain. For a healthy level of new supply there will have to be a change in appetite but with many newer schemes across the UK emphasising phased development there is bound to be a lag in implementation. As predicted for some time, this leaves the ingredients for high quality refurbishments as being the most likely stop gap solution.”
