Demand for office space in Bristol city centre has been so strong this year that take-up to date has already exceeded the total for the whole of 2015, according to research from commercial property specialist Colliers International.
Latest figures from the Bristol offices team at Colliers International has shown that a total of 515,000 sq ft had been taken up in the city centre by the end of Q3, compared to 490,000 sq ft for the whole of 2015.
National offices director James Preece said the stand out performer continued to be the city centre, where take up to date is now 24% above the five-year average.
“Despite Brexit and the summer holiday period, the Bristol office market has had another solid three months of take up,” he said.
“Both in and out of town performed at a very similar level to Q3 last year and combined with high levels of city centre lettings in the first half of the year, the overall picture is impressive.
“This looks set to continue with the recent approval of Hinkley C and its expected boost to the local economy, as well as a large government requirement about to land in the city centre.”
Co-director Catherine Collis added: “Grade A rents have remained stable at £28.50 per sq ft in the city centre, although we anticipate that the £30 barrier may be breached in the final quarter.
“Due to a lack of supply, with only one new office (Cubex’s Aurora at Finzel’s Reach) under construction, higher tier Grade B rents continue to show steady growth and range between £20 and £25 per sq ft.”
During the first half of the year, EDF and Direct Line agreed deals on city centre offices totaling 144,000 sq ft.
The Colliers research also showed that take up approaching 200,000 sq ft in the third quarter has consolidated an excellent first half performance and put the Bristol office market as a whole (both in and out of town) up 20% on the same period of 2015 and up 12% on the 5-year average.
