Take-up of office space in Bristol is at a six-year high, a study has found. The city’s office market was the only one across the UK’s six largest regional settlements to record an increase in leasing activity in the first half of the year, according to research from property agency JLL.
The analysis, which also tracked take-up, vacancies and rent prices across Birmingham, Edinburgh, Glasgow, Leeds and Manchester, found an 18% uplift in Bristol on the second half of 2021 - the first period JLL had monitored which had not been disturbed by national Covid-19 lockdowns since before the pandemic.
JLL said technology, media and telecoms (TMT), and services sectors dominated Bristol’s office leasing activity, accounting for more than half of floor space taken up in 2022 to date.
The company highlighted Deloitte’s relocation of more than 600 staff to huge eco office block Halo at Finzels Reach and FinTech firm Paymentsense opening a contact centre at the central EQ development as “significant deals” during the period.
JLL said its research also outlined challenges currently facing Bristol’s office market. The firm said there is around 475,000 sq ft of new speculative space currently being built, of which only a little more than 30,000 sq ft is due to complete this year. The commercial real estate firm said supply “will do little” to alleviate the pressure on new offices in the short term.
Across the six cities analysed in the research, JLL found leasing activity for the first half of 2022 was slightly ahead of the same period last year. Rents grew 5.6% year-on-year, while investment levels were up 16% on 2021 and 27% above the 10-year H1 average.
Hannah Waterhouse, director of office agency for Bristol at JLL, said: “Bristol is proving an increasingly attractive base for those in professional services and TMT. Office providers need to match their desire to base their businesses here with a steady supply of high-quality stock. That will take investment, but the opportunity is there for the city to cement its place as a tech hub for years to come.”
Elaine Rossall, head of UK offices research and strategy at JLL, added: “While the story that is coming through across the six cities is somewhat mixed, the overall data points to a sector that is well on the road to recovery.
“What’s needed now is certainty. As we head into a turbulent economic environment, businesses will need to have confidence in both local and national leaders before setting-up offices and investing in our cities.”
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