The Bristol city centre office market has had a steady start to 2017, despite the total space available for office use falling to its lowest level in 16 years, according to CBRE.

CBRE’s UK Office Property Perspective H1 2017 report reveals that a total of 267,989 sq ft was acquired for occupation in Bristol during the first half of the year.

While this figure is lower than 2016 rates, it is comparable with levels from 2013 to 2015 and has been driven by deals such as The University of Bristol’s purchase of the newly refurbished Augustine’s Courtyard.

This was the largest deal over this period, with other significant transactions including White Oak Capital’s take-up of 17,400 sq ft at 40 Berkeley Square in Clifton and the 9,910 sq ft taken by the newly formed West of England Combined Authority at 3 Rivergate, Temple Way.

Overall, the public sector and creative industries fueled the highest demand for space (each accounting for a quarter of take-up), followed by the business services sector, which took an 18% share.

“While demand for office space in Bristol remains relatively strong from a range of sectors, total availability in the city at the end of June stood at 580,950 sq ft, which is the lowest level since around 2001,”

said Peter Martin, Office Agency Director at CBRE.

“Grade A supply is particularly low, with Aurora on Finzel’s Reach the only speculative development currently on site.

Due to complete in mid-2018, the first space in this building has now been let and, with supply currently so limited, the remaining space is unlikely to be available for long.”

The CBRE’s research has also found that this diminishing supply, including Grade B space, is placing continued pressure on rents.

The increase in rents is fueling highly competitive bidding situations, with the largest deal of the year in the first half of the year being the purchase of Colston Tower by AEW in February for £17.5m.