- Total take-up of offices (over 1,000 sq ft) in Q3 2017 was 307,478 sq ft, a 33% increase on the 5 year average of 228,534 sq ft.
- Both markets have exceeded the levels of take-up seen for the same period last year.
There were a total of 28 deals done in the city centre market in Q3, with an average deal size of 5,944 sq ft which is in line with the 10 year average.
Perhaps the most anticipated deal this quarter was Mewburn Ellis’ acquisition of 13,326 sq ft at Cubex’s Aurora. This is the city’s only speculative development at the moment and we expect to see most, if not all of the building, let before practical completion in Q2 2018. Not only was Mewburn Ellis’ acquisition the first deal at Aurora and the only pre-let this quarter, it also broke record rent levels with a rent in excess of £30.00psf.
The out of town market exceeded all expectation with a take-up of 134,456 sq ft, and again, like the city centre, it saw an increase in larger deals - in particular, at St Monica Trust’s The Chocolate Factory in Keynsham which saw the letting of 29,783 sq ft to a unnamed occupier, and Pukka Herbs’ acquisition of 17,222 sq ft.
Bristol's out of town market has been impacted by the sale of 230,000 sq ft of offices at Park View Office Campus, Whitchurch Lane, which is to be converted for residential use. Out of town has not been impacted by permitted development as much as the city centre, which has seen over 2,000,000 sq ft converted to alternative use. However, this sale is expected to trigger others that will see poor quality stock being taken out of the market and converted to alternative uses.