Take up of commercial office space in central Bristol has increased slightly, but the challenging economic climate continues to impact on occupier confidence.
According to figures collated by Bristol’s leading commercial property agents, take up of office properties in the city centre between July and September was almost 110,000sq ft. This figure is similar to quarters one and two, but below the ten-year average. Take up of new space was also significantly down.
Encouragingly a number of leading organisations demonstrated a commitment to Bristol during Q3, including international law firm Simmons & Simmons which opened a new office in Temple Quay, a move reflecting the growing trend of London-based lawyers outsourcing work to those in Bristol. Meanwhile, American technology company Maxim Integrated Products doubled its occupancy by taking space in Redcliff Quay.
Elsewhere, take up of out of town commercial property space in Q3 was almost 50,000 sq ft, similar to the previous quarter, and significantly out performing cities such as Birmingham and Edinburgh. Notable deals included the expansion of two international science and technology-based companies – including Japanese power electronics firm TDK-Lambda, a group company of the TDK Corporation and Marine Current Turbines, a Siemens company – at the Bristol & Bath Science Park in Emersons Green.
Ian Wills, director in the Bristol office agency team at Jones Lang LaSalle, said: “Q3 office take up is reasonable given the distraction of this summer’s Olympic and Paralympic Games and the on-going uncertainty in the Euro zone. There are a number of larger transactions in solicitors’ hands at present and if they complete this year, overall take up will be more encouraging.
“Bristol remains an attractive commercial destination, offering firms an excellent range and quality of commercial properties, competitive terms, highly-skilled workforces and a diverse occupier mix. It is therefore likely the commercial property market will respond quickly when the economy improves, with more firms following the example of the prominent organisations which have strengthened their ties with the city during the past three months.”
