Take up of commercial office space in Bristol has exceeded the 5 year average demonstrating greater demand in the market.
According to figures collated by commercial property agents in the city, take up of office properties in the city in the first half of the year stood just over 415,000 sq ft, exceeding the 5 year 6 monthly average for in and out of town combined (2008-2013) by 10 per cent.
This has been underpinned by two large freehold deals in the city centre, 100 Temple Street to Bristol City Council and Imperial Tobacco’s new headquarters on Winterstoke Road but also the number of transactions has shown an increase specifically at the smaller end of the leasehold market with tenants looking for value for money and growing companies keen to take advantage of the deals on offer while they last.
Bristol’s refurbished Tower House has particularly benefitted from this trend, securing five deals, totalling just under 10,000 sq ft – the largest number of deals done in any one building in 2013 so far.
The 14-storey city centre building in Fairfax Street is now home to Immediate Media Co – a new media and publishing company that has combined former businesses BBC Magazine, Origin Publishing and Magicalia – taking an additional 4,050 sq ft on the sixth floor.
Other deals include Cardiff based T2 Business Solutions who have expanded their presence in the West with a 3 year lease on 2,000 sq ft, Netboss who have taken 1,400 sq ft, Quote Source and Comfy Trade Ltd.
With only one 10,000 sq ft floor still vacant at Tower House, joint agents Jones Lang LaSalle and Colliers are now looking at sub-dividing the space in order to cater for demand from SMEs.
Hannah Waterhouse, associate director in the Bristol office agency team at Jones Lang LaSalle said:
“The take up for the first half of 2013 is really encouraging. There is strong demand for good value office space in the city centre from growing companies wanting to take advantage of the good deals on offer while they still can, as we’ve seen at Tower House.
“We’re noticing a higher level of enquiries from potential occupiers due to lease events and improving market conditions and we are confident that we’ll continue to see improvement across the sector going in to next year”.