Higher activity across a diverse range of sectors has kept the Bristol Offices market buoyant in Q3 – with high expectations of increased completions in the final quarter.
With no new developments underway and continuing erosion of Grade B stock to conversion schemes, the rise in rents looks set to continue.
Q3 city centre take-up at 131,000 sq ft is similar to the same period last year. Take-up to date for 2015 has reached 397,000 sq ft, some eight per cent above the five year average.
Analysing the latest city centre figures, James Preece from Colliers International said although the market had not seen the larger deals witnessed last year, there had been a ‘measurably higher level of transactions’.
He said: “Whilst there has been a lack of Grade A City Centre activity, we expect this to change in the final Quarter. Requirement levels are high and a number of deals that have drifted should go over the line resulting in an increased level of completions in Q4.
“When you bear in mind that there have been no deals above 14,500 sq ft so far this year, this makes the take-up figures all the more impressive. Once again the bulk of city centre deals so far this year have been in the 5,000-10,000 sq ft size range.
“As in the City Centre, the greatest proportion of the space let out-of-town so far this year was in the 5,000-10,000 sq ft size range, with the technology sector once again very active. There are a number of reasonable sized requirements currently reviewing options and we are optimistic that many of these will commit to space in the next six months.”
James said the out-of-town market had been subdued compared to last year with around 65,000 sq ft taken up in Q3.
To date, 2015 take-up stands at 198,000 sq ft, 21per cent below the five year average. The largest and only Grade A out-of-town transaction this quarter was Northgate taking 13,000 sq ft on the second floor at 740 Aztec West.