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Bristol Boom

10th June 2015

Bristol Boom

Two speculative developments in Bristol totalling 295,000 sq. ft. of grade A office space is further proof it is not just London suffering from severely low vacancy rates. The Commercial Estates Group was granted planning permission in 2012 for 200,000 sq. ft. on the old Aspire Site at Temple Key; construction should be begin at the start of next year on the £100m building. Further to this, back in May 2015, Cubex applied for planning permission for 95,000 sq. ft. of grade A office space at Finzels Reach; which is also to be speculatively built. Both buildings should be ready in Q4 of 2017.

Over the last 12 months Bristol has seen a somewhat unpredicted, substantial take up; the majority of 66 Queen Square (66,000 sq. ft.) was let to KPMG and 100,000 sq. ft. was let at 2 Glass Wharf to PwC, who are also looking at taking 115,000 sq. ft. at the adjacent 3 Glass Wharf. Andrew Ingram, a surveyor at Morgan Pryce believes, “these lettings have helped to quickly diminish the already low level of grade A office space in Bristol and has helped push rents up – similar to what we have seen in London, although not quite to the same level.”

Take up in Bristol was fractionally over 1.26m sq. ft. for 2014 which is up a huge 72.5% year on year, a clear sign the economic recovery has not just been limited to London. 2014 was the best take up Bristol has seen since 2008. Rents have increased with £28.50 psf being achieved at the end of 2014 and further rental growth expected to reach low £30’s psf on prime stock during 2015. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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