Market snapshot

Office Market Pulse Bristol Q3 2013

The Bristol market combined city centre and out of town office take-up in the three quarters of 2013 was 18% up on the same period last year, at 603,368 sq ft.

You can download a PDF version of this Bristol Office Market Pulse, or to read and sign-up to receive Office Market Pulses from other UK centres, click here.

In this issue:

City centre drives rise in office take-up

Combined city centre and out of town office take-up in the three quarters of 2013 was 18% up on the same period last year, at 603,368 sq ft. 

Activity in the third quarter alone was 188,177 sq ft, the highest third quarter take-up for 6 years.

City centre take-up was the highest since 2008, with Veale Wasbrough Vizards 39,000 sq ft letting at Narrow Quay House and Barclays 18,759 sq ft letting at Bridgewater House boostinged city centre take up-to 138,187 sq ft.

Out of town, take-up reached 49,990 in the third quarter which is up on 2012.

For a detailed breakdown of Q3 2013 take-up by grade, please click here or on Chart 1 to the left of this article.

Conversions of second hand office buildings into residential reduces supply

Total availability in the Bristol city centre office market reduced by 30% in Q3 2013, and now sits at just over a 1m sq ft. The majority is in the second hand market.

Supply in the second hand market reduced the most, with recent development purchases of office buildings to be converted into residential. An example is 106,000 sq ft at Lewins Place.

For a detailed breakdown of Q3 2013 supply by grade, please click here or on Chart 2 to the left of this article.


Key Bristol office lettings, Q3 2013

Property Size (sq ft) Landlord (s) Tenant / Purchaser
Narrow Quay House 39,000 Standard Life Veale Wasbrough Vizards
4th Flr, Bridgewater House       18,759       Savills (as receivers)   Barclays Bank
1st Flr, One Castlepark 11,840 Circle Property Which?
Fromeford House, Yate 8,895 Jelf Group Hawkins & Associates
210, Bristol Business Park 7,407 Clip Limited Babcock

Strong out of town locations stabilise overall falling rents

Out of town, prime rents have remained at £19.50 in Q3 2013; however there have been no large out of town deals since Q1. The majority of rents in the out of town market have been falling.

Prime city centre rents held steady at £27.50 per sq ft.

For a detailed breakdown of Q3 2013 prime rents, please click here or on Chart 3 to the left of this article.

Investment strength in the regions

Q3 saw some key investment sales for the city with sub 7% yields being agreed out of town, which have achieved higher quoting levels than expected. 

Kames Capital purchased Embassy House, Clifton from Rockspring for £7.5m (8.96%); multi-let retail with 43,242 sq ft offices. 

Redcliff Quay was been purchased by L&G for a confidential price from Standard Life.  Quoting level was £24m (8.27%) for the 108,000 sq ft multi-let.

Dakota House Building, Bristol Business Park sold for £10.5m (8.2%) and let to Thales for 20 years.  A private purchaser paid £1m above quoting level.

Park Gate, 2000 Aztec West has exchanged at sub 7% off a quoting level of 7.5%. Of that 68,000 sq ft office space has been let to EE for a 14 year term.

To view our latest UK Investment Transactions (UKIT) report, please click here.

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Peter Musgrove

0117 914 2013

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Peter Musgrove
Director - Head of Office - Bristol

0117 914 2013

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