Market snapshot

Office Market Pulse Bristol Q1 2015

Following last quarter's record number of deals take-up is down this quarter but with large numbers of deals in the pipeline this is set to change as we move into the second half of the year.

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:

Grade A and B stock set to run out in next 18 months

Stock continues to diminish at record rates with existing requirements set to remove a large chunk of available grade A city centre stock whilst the effects of PDR continue to have a significant impact.

With supply decreasing and no new development planned for completion beyond next year we could be under supplied in both grade A and B markets within 18 months.

There are several sites available for development both in the city centre and out of town and we hope to see some of these begin to be developed as stock continues to be taken out of the market and requirements remain high.

For a detailed breakdown of Q3 2014 availability by grade, please click here or on Chart 1 to the left of this article.

Q1 take-up down following record deals last quarter

City Centre take-up reached 106,164 sq ft in 29 deals, the largest deal to Mott MacDonald who took 10,419 sq ft of ground floor space at Templeback. 

Overall city centre take-up is down on q1 of last year due to the record number of deals completed in Q4 2014.

Out of town take-up is also down on the previous year to 67,365sq ft with the average deal size at 4,491sq ft, the largest being 13,267sq ft of space at Patchway Trading Estate taken by Mitie.

There are still a number of large requirements in the market both in the city centre and out of town and we are expecting to see many of these complete before year-end. Once complete take-up will be more in-line with last year and we also hope to see continued improvements in the out of town market which has had a significantly slower recovery.

For a detailed breakdown of Q1 2015 take-up by grade, please click here or on Chart 2 to the left of this article.

Key Bristol office lettings, Q1 2015

Property Size (sq ft) Landlord (s) Tenant / Purchaser
Templeback                  10,419 Cube Mott Macdonald
Broad Quay House 10,057 Standard Life Just Eat
290 Aztec West 6,677     Hansteen


Embassy House 5,176 Kames Capital Plc Endemol


Prime rents up on last year off the back of a return in market confidence

City centre grade A rents have risen this quarter to £28.50 per sq ft.

Out of town Grade A rents have also risen since the same period last year to £21.00 per sq ft.

For a detailed breakdown of Q3 2014 prime rents, please click here or on Chart 3 to the left of this article 


Bristol investment market hots up

Competitive bidding has seen Skanska’s 66 Queen Square sell for sub-5% off the back of other strong bidding for Kings Orchard and Linear Park.

Strong institutional investment in the city centre office market should see a speculative funding deal achieved this year in the market.

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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