Businesses in central Bristol can now expect to spend around £7,000 a year for each desk when renting office space in a new building, according to new research from commercial property agents Lambert Smith Hampton (LSH).
LSH’s latest Total Office Cost Survey (TOCS) 2016 reveals that new buildings in central Bristol have a total cost per square foot of £70.49, and a cost of £60.21 for older properties, while property costs have risen by over 10% in just two years.
However, data suggests that the city still represents huge value when compared with business space costs in London. Occupiers looking to take space in a new-build development in the capital’s central Midtown district would pay £127.76 per sq ft, equating to an annual deskspace overhead of £12,776 – an massive increase of 81% on Bristol’s rate.
To calculate the total cost figure in the report, a range of factors have been taken into account, including rents, rates, fit-out and furniture costs, insurance, security, cleaning, waste disposal, energy bills and management fees.
Commenting, LSH Bristol’s Head of Office Peter Musgrove said: “Bristol’s highly educated local workforce, strong academic links and good transport networks make it a highly attractive option for businesses looking to establish themselves in the south west, and now the financial case to relocate out of the capital is arguably as compelling as it’s ever been.
“The relative cost parity that once existed between Central London’s fringe locations and cities like Bristol has vanished and with occupiers having to look further afield than the capital to reduce costs, Bristol is well-placed to benefit.”
