Colliers International’s latest research reveals that prime office rents in Bristol city centre have increased by 4 per cent in Q2 2015 YOY, as Grade ‘A’ rents achieve £28.50 psf – positioning Bristol well above the national average of £23.98 psf.
Colliers’ research also found that incentives for new 10-year leases in Bristol city centre for Q2 2015 stood on average at 24 months, based on a 10,000-plus sq ft unit requirement. Nationally, average incentives were down 11 per cent to 20 month for the same sized premises.
On a national basis, Colliers’ research revealed that office rents throughout the UK increased on average by 6.5 per cent, with prime rents averaging £23.98 psf and secondary at £15.51 psf.
Of the nine locations monitored in the South West, Gloucester reported the most significant growth with rents increasing 19 per cent to £18 psf. Other towns in the South West region which reported rental increases for Grade ‘A’ space included Bournemouth, Exeter, Plymouth and Swindon. Bristol’s out of town centre Grade A office space now stands at £21.50, an increase of 2 per cent.
Average secondary stock rents throughout the UK are up by eight per cent. In the South West, a number of towns saw rental increases for secondary stock, with rents in Bournemouth up 11 per cent, Exeter up 10 per cent, Cheltenham up 11 per cent and Gloucester up 18 per cent – representing averages of between £10-£11 psf. Secondary space in Bristol city centre also saw rental increases of 3 per cent, reaching £19 psf.
James Preece, Director of National Offices in Bristol, commented: “The great rental growth we are seeing on the whole in the primary and secondary markets is due to significantly limited supply. Middle tier occupiers are now faced with the prospect of having to pay more to be in a better location right now or wait for the delivery of new stock. Regardless, pent up demand will exacerbate supply shortages and as a result there is a potential for continued rental growth.”
