Bristol’s office rents have exceeded £30 per sq ft, in an outstanding third quarter performance in which both city and out of town markets had their highest take-up of 2017.
The Colliers International Bristol Office Market Snapshot for Q3 2017 shows the new level for prime office rents in Bristol city centre was achieved on the first pre-let on Grade A space totalling 13,326 sq ft at the speculative Aurora scheme, in the mixed-use Finzels Reach development.
James Preece, national offices director, said:
“This is no surprise with historically low levels of supply and consistently strong demand for the last four years.
The out of town market has also witnessed take up levels well above the five-year average, with Colliers International having transacted almost 70,000 sq ft, so far this year.”
He predicted that it would not be long before the prime rent in the city centre was pushed up even further due to such low levels of supply.
He said:
“There are rumoured to be a number of other deals under offer in the city at in excess of this level.”
Mr Preece said that following a steady first half performance in Bristol’s office market, the third quarter had been “exceptional” with take up at just over 300,000 sq ft.
He said:
“This is 57% higher than the same period of 2016 and the five-year average for Q3. Both the in and out-of-town markets had their strongest quarter of the year so far, which is unusual with summer being in the middle of it.”
The largest city centre deal in Q3 2017 was Grant Thornton taking 16,900 sq ft of Grade A space at Number 2 Glass Wharf, which was one of four Grade A lettings.
Out-of-town Q3 received a boost from The Chocolate Factory in Keynsham which let 47,000 sq ft in two deals.
“The number of out-of-town transactions above 5,000 sq ft has increased significantly to 43% this quarter compared to 14% and 25% in Q1 and Q2 respectively.
While a diverse range of sectors took up space out of town in Q3, in the city centre professional services and financial services have been the dominant sector.”