City centre office take up in Bristol for the third quarter of 2015 continued on trend with the take up for the first two quarters of the year, according to property consultancy Knight Frank.
Martin Booth, partner in Knight Frank’s Bristol office agency team, said: “Following a pause for breath post-election and the good news from the general UK economy, occupier sentiment remains positive. Q3 take up of 131,162 sq ft was in line with the five and 10 year averages and we are all hoping for a strong finish to 2015.
“The quarter’s figures were not distorted by any unusually large deals. However the quarter did have the largest deal to date this year, which was the letting of 14,494 sq ft to Civica in the Spectrum building.”
He added: “The autumn rush of new enquiries to the market has not materialised to the high levels we were hoping for. That said, enquiry levels remain healthy with demand for ‘creative’ or ‘quirky’ space far exceeding supply.
“To date in 2015 a further 128,000 sq ft of accommodation has been removed from the city centre office market for alternative uses, predominantly residential or student accommodation which increases the pressure on an already tight market.”
The out-of-town office market continued at a steady pace with Q3 take up of 64,641 sq ft. The largest deal was the letting of 12,831 sq ft at 740 Aztec West to Northgate. “This comprehensive refurbishment by L&G has seen real success, with 38,534 sq ft already pre-let to Alcatel Lucent at the end of 2014. It demonstrates a demand for high quality product in a market with there is a real scarcity,” said Martin Booth.
Looking ahead, Martin said: “A number of the larger indigenous Grade A & B requirements of more than 10,000 sq ft which have been circling the market are beginning to hone in on their preferred options, and we expect a number of those to land in Q4 2015.
“With availability now standing at its lowest level since September 2008, we anticipate speculative development will commence in Q1 2016 within the city centre.”
