The Bristol office market has started to see a shift in the levels of co-working space as landlords become more accepting of less traditional lease terms and the sector itself grows. How has this shaped activity in the first half of the year?

The increased understanding and willingness to accept the co-working sector from landlords has meant that there is more flexibility on leases and the space being let. Leases are being issued for a shorter period and suites are being split to provide smaller areas to align themselves with co-working or serviced office providers.

This removes the need to hold out for a more traditional firm and risking a longer void period. In the Bristol office market we estimate there is around 250,000 sq ft of demand currently from the co-working and serviced office sectors.

According to Savills latest Bristol Cross Sector report the city has experienced the same slowdown in office development as the rest of the country. This lack of development has been coupled with a rise in office stock being converted to residential use, with 37 per cent of Bristol’s offices being converted through permitted development rights.

However, the future looks brighter with at least one, and possibly more, speculatively developed office buildings set to start on site over the next year.

Demand for Grade A stock remains strong, with major refurbishments taking place to bring older buildings up to this standard. In terms of fit-out, the ‘defurbished’ look with exposed services that was once popular in the tech and co-working sectors is now starting to become coveted across all occupier types.

Firms are looking for spaces that can be used more flexibly and offer maximum amenity; an increasingly important way to attract a range of tenants and small start-ups.

The universities are also having a big impact on the office market as there are an increasing number of business that are linked to universities that are looking for start-up space. Spaces such as Engine Shed are providing an incubator environment for new businesses in the city, housing them until they grow to have a larger office requirement.

Their plans to develop the area surrounding Temple Meads station has also enhanced the location for office development. Our Bristol Cross Sector report also highlights this as an area of future development, opening up the gateway to the city enhanced by the electrification of the Great Western Railway. 

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