Office take-up across the UK’s Big Nine regional cities remained steadily above the five-year quarterly average in the first quarter of the year, with take-up totalling almost 2 million sq ft, 5% above the average, according to the Big Nine research from leading commercial property adviser Bilfinger GVA.
There was an appreciable slow-down in city centre take-up, which at 1,095,800 sq ft made up 56% of the total, which was 5% below the five-year quarterly average. However out-of-town take-up was 20% above the quarterly average, at 881,400 sq ft, according to the latest Big Nine report.
This was echoed in Bristol with take-up of 106,164 sq ft, compared to the five year quarterly average of 128,344 sq ft. Likewise out-of-town, actual take-up was 67,365 sq ft, compared to the quarterly five year average of 75,943 sq ft.
News around deals and ongoing requirements is nonetheless exceptional.
In Bristol enquiries include lawyers Foot Anstey (20,000 sq ft), Fraser Nash (25,000 sq ft) and Now Pensions (20,000 sq ft). Positive sentiment has brought forward discussions on major office development schemes such as Bank Place and 3 Glass Wharf and it is understood that speculative development is due to commence this year on the 200,000 sq ft Aspire scheme on Victoria Street.
Richard Kidd, Director and Head of Offices at Bilfinger GVA in Bristol, comments: “There has certainly been an ongoing buzz around the regional office markets’ recovery with actual take-up rates in all cities having very positive figures this year and record take- up rates in 2014.
“Out-of-town, due to the record take-up in north Bristol during 2014, there is now a chronic undersupply of buildings able to offer 20,000 sq ft or more although two buildings that will come onto the market in 2015 are St James Court, Almondsbury and 800 Aztec West but with refurbishment required these will not be available for occupation until 2016. However, further speculative development is unlikely to start soon, as demand levels have been subdued at the start of 2015.”
