• Swindon & Wiltshire Property
• Thursday September 29 2022
• Author Name: Peter Davison

Bristol office market thrives as take-up hits six-year high – JLL

Take-up for Bristol office space is at a six-year high and it is the only one of the UK’s six largest regional cities to record an increase in leasing activity in the first half of the year, according to research from JLL.

The ‘Big Six’ research, which tracks office take-up, vacancies and rent prices across Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester, showed leasing activity in Bristol was up 18 per cent on the second half of 2021, the first period to have not been disturbed by lockdowns since before the pandemic.

The city’s take-up rate is also 37 per cent ahead of the five-year average. The technology, media and telecoms, and services sectors dominate Bristol’s office leasing activity, accounting for over half of floorspace taken up in 2022 to date. The year has seen significant deals including Deloitte’s leasing of Halo at Finzels Reach and Paymentsense’s move to EQ completed.

But JLL’s research also outlines the challenges Bristol’s office market faces. There is currently 476,500 sq. ft of new build speculative space currently under construction in the city, yet only 31,650 sq. ft is due to complete in 2022. That 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 H1 2022 was slightly ahead of the same period last year. Rents grew 5.6 per cent year-on-year, while investment levels were up 16 per cent on 2021 and 27 per cent 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, said: “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.”