There is significant optimism in the regional office markets as the upturn in confidence, and recently a more stable economic position filters into occupier business strategies, according to the latest market analysis from independent property adviser GVA, in its report, The Big Nine.
In Bristol, take-up in Q2 was well above average at 143,931 sq ft, compared to the five year quarterly average of 106,128 sq ft. Imperial Tobacco’s 85,000 sq ft deal at Winterstoke Road was the second largest deal this quarter amongst the nine centres studied. Combined with out-of-town take up, Bristol recorded 190,986 sq ft in Q2.
The nine GVA regional office centres recorded 1,730,000 sq ft in deals for Q2, 7% above the five-year quarterly average. The city centre market made up 67% of this total and recorded take-up of 1,161,000 sq ft, 14% above the five-year quarterly average. In Q2 the out of town market dropped 5% below the quarterly average.
Richard Kidd, Director of Office Agency in the Bristol office of GVA comments: “Our Q2 analysis of regional office take-up is encouraging and reflects what is happening here in Bristol. Sentiment is up on what was already a positive Q1 and we anticipate that take-up figures will continue to improve in the medium term. However, the concern remains that if demand for Grade A stock increases then without speculative development in Bristol, such as Two Glass Wharf and 66 Queen Square, an ominous tipping point could present itself.”
