Office take-up for the first half of 2025 has maintained steady momentum in Bristol City Centre, while the out-of-town market has seen its two largest deals since 2020, reports the Bristol Office Agents Society.
While city centre take up is slightly behind the 5- and 10-year averages, the out-of-town market is in line with its average take-up figures. Continued pressure on supply has meant that headline rents in both markets have increased to set new record levels.
Bristol’s City Centre market saw 20 deals complete in quarter one with a total take up of 92,995 sq ft, and a further 25 deals complete in quarter two with a take up of 118,658 sq ft, to bring the total for the first 6 months of the year to 211,653 sq ft. Whilst this is behind the 5 and 10 year average, there are a number of deals in the pipeline for the second half of the year.
The largest deal of the first six months of the year was OVO’s acquisition of 22,892 sq ft at the newly refurbished The Crescent, and was closely followed by Unite’s move to 22,000 sq ft of new build space at Tristan and Trammell Crow Company’s Welcome Building.
This sustained level of take-up is fuelling optimism across the market as occupiers are under increased pressure to take the best space possible, whilst also future proofing their space for ongoing economic uncertainty. Tenants are prepared to pay for high quality, well-located space in order to promote business growth and a return to the office, and headline rents in the city centre have now increased to £49.00psf.
Current levels of supply remain very low in the city centre and following PC of Welcome Building, there are now no new developments on site. Comprehensive refurbs have recently been completed at Aberdeen’s Queens Quay and CEG’s The Crescent, and others are underway at APAM’s One Friary and Skelton’s Embarq. These will meet current demand levels, but leave occupiers with very limited choice, and it is anticipated that there will be a severe shortage of supply in the next 2 – 3 years unless more schemes come forwards soon.
The out-of-town market has achieved take up in line with the average figures for this period, with 107,780 sq ft of take up in Q1 and 143,970 sq ft in Q2 to give a H1 total of 251,750 sq ft. The market has seen its two largest deals in the last 5 years complete in the first 6 months of 2025 – namely EDF’s acquisition of 78,284 sq ft at CEG’s newly refurbished 1000 Aztec West in Q1, and Babcock’s sub-letting of 87,648 sq ft of surplus space at 100A Bristol Business Park to Rolls Royce in Q2. Furthermore, headline rents were also increased at 1000 Aztec West which achieved £27.00psf. These are both significant deals for the market which demonstrate sector specific demand for the out of town location but with a lack of mid-size deals to support these there are concerns about out of town take up for the rest of the year.
Phil Morton, of Morton Property Consultants, commented: “Occupiers remain resilient, securing prime office space at premium rents despite tightening supply. Demand for quality remains strong, underscoring confidence in the market. Developers and landlords bold enough to defy the scarcity trend and deliver new stock stand to benefit most—positioning themselves as tomorrow’s winners.”
Christopher Meredith, Director in Office Agency at Savills, comments: “The Bristol City Centre continues to dominate activity in the region. While current requirements can still be met, we’re at a pivotal moment in the market cycle. The long-term pipeline is constrained, with no speculative development underway due to viability challenges and although rents are rising, it’s a delicate balancing act. As a result, we’re seeing a growing shift toward pre-let agreements as occupiers look to secure future space in an increasingly competitive environment.”