• Swindon & Wiltshire Property
• Monday March 20 2023
• Author Name: Peter Davison

Bristol office rents grow at fastest rate of UK’s ‘big six’ cities – JLL

Rental growth for prime Bristol office space was the highest across the UK’s ‘big six’ cities in 2022, according to research from property services firm JLL.

The ‘Big Six’ research, which tracks office take-up, vacancy rates and grade A rental growth across Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester, showed year-on-year rental growth stood at 10.4 per cent in 2022, with headline prime rents reaching £42.50 per sq ft in 2022.

JLL’s research shows 116 deals were completed in Bristol last year, the highest since 2016, leaving just 3.9 per cent of the city’s offices stock available to rent.

The largest deal to complete in 2022 was Paymentsense’s pre-let of 54,767 sq ft at EQ (pictured)  followed by Pax8 acquiring 24,375 sq ft at The Distillery. JLL, which completed the most deals in the city, acted for the landlord in both of those transactions.

The most active business sector in 2022 was in Tech, Media and Telecoms – both in terms of space taken (40 per cent) and number of deals (37).

Investment activity totalled £1.6 billion nationally in 2022 – a nine per cent decrease on 2021’s £1.8 billion and a 17 per cent decline on the 10-year average.

Big six office investment in H2 totalled £789 million, a 28 per cent decrease compared to the same period in 2021 and a 27 per cent decrease on the H2 10-year average.

Simon Peacock, head of South West at JLL, said: “It’s not hard to see why demand outstrips supply in Bristol – fantastic universities, a thriving business community and a booming residential market
make it an attractive place to study, work and live.

“But the city needs greater investment in transport and our city planners so we can bring prosperity to all our people – not to mention a more stable political and economic climate will attract the capital needed to boost Bristol’s long term growth prospects.”

Elaine Rossell, head of UK offices research at JLL, said: “An overall pick up in activity across our six markets is heartening to see but to be trending below five and 10-year averages suggests confidence hasn’t picked up to the extent we would have liked just yet.

“What’s needed now is economic stability and a clear plan for growth for the regions, which in turn will spur investors into longer-term spending on our cities.

“Our big six cities have bounced back well from the pandemic and will be crucial to the broader economic recovery – what they need now is the support and stability needed to fulfil their potential.”