Economic conditions are on the up according to the leading quarterly regional office market report by GVA, which recorded regional take-up of 7.73 million sq ft in 2013, the highest annual take-up within the last five years.
The Big Nine reports in 2013 GVA’s nine city centres recorded the highest level of annual office take-up within the last five years, a total of 4.82 million sq ft. City centre take-up totalled 1,358,293 sq ft in Q4, 29% above the five-year quarterly average and highest quarterly take-up since 2010.
Bristol recorded a Q4 (2013) take up of 76,545 sq ft, with take-up for the whole year increasing by almost 100,000 sq ft to 505,000 sq ft which is well above the five year average take-up.
Richard Kidd, Director of Office Agency at the Bristol office of GVA, commented: “Overall, it is clear both from investor sentiment and the levels of occupier demand that the UK’s regional cities are once again beginning to push forward.
“In Bristol, whilst we have seen the early signs that the occupier market is returning, and we now have two speculative developments under construction in Bristol City Centre, there is still limited demand for Grade A space at the top end of the market.
“We are starting to see the new PDR rules taking effect with a significant level of second-hand office supply being taken out of the market for conversion to residential uses. We believe that this dramatic reduction in supply of employment space coupled with the expected increase in demand as the economy improves, will provide selective rental growth during 2014 onwards and investors are now more willing to consider an increased exposure to risk where the right levels of return justify it.”
Office take-up in the out-of-town markets for Bristol stood at 47,823 sq ft for Q4 2013.
