Bristol office space take-up doubles in 2010

King Sturge releases its 2011 report on Bristol office market

Article posted: 04 May 2011

According to a King Sturge’s Bristol Office Market Report, the size and quality of deals improved in 2010 with nine deals of Grade A office space in Bristol which totalled 127,759 sq ft, over twice the amount recorded in 2009.

King Sturge believes that this total is possibly the result of occupiers driving value from landlords keen to let space and reduce their liabilities.

Of this take-up there were eight deals over 10,000 sq ft, compared with six in 2009 but this is still below the ten year average of eleven.

2010 has also seen the return of the ‘off plan commitment’ with 53,000 sq ft acquired by Simply Health at Redland House following the developer purchase of the building by Stoford, and with 25,000 sq ft under offer at Crest’s Harbourside development, 2 College Square (pictured).

In terms of total take-up, 78% of deals still remain below 5,000 sq ft but 2010 saw more of an improvement in the mid-range market with twenty deals between 4,000 sq ft and 8,000 sq ft compared to fourteen in 2009.

The predicted take-up in 2011 will be similar to that in 2010 where it was 458,823 sq ft. There are a few large enquiries currently in the market for example AXA looking for circa 70,000 sq ft although King Sturge anticipates the extended Easter break will have an impact on Quarter 2 figures. However, as with 2010, King Sturge expects demand to increase going into Quarter 3.

The supply of existing Grade A stock now stands at 301,227 sq ft with a further 28,000 sq ft under offer and 136,712 sq ft under construction at Finzels Reach and 2 College Square both of which are scheduled for completion this year.

The full report is available at: http://viewer.zmags.com/publication/231dd36d#/231dd36d/1

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