After several years of consistently strong levels of take-up, the Bristol office market has now reached a point where available levels of space currently stand at 450,000 sq ft. Of this only 100,000 sq ft is Grade A.

These figures mean that the city doesn’t currently have enough available office supply to meet just one year’s worth of take-up demand. This begs the question: if city centre space is constrained, what other opportunities are out there for occupiers looking for an office in Bristol?

The out-of-town office market has had a strong couple of years as a result of the reduction in city centre space. Take-up in 2018 hit 401,000 sq ft, 26 per cent above the 10-year annual average (328,000 sq ft). This is in comparison with the city centre in which take-up reached 532,000 sq ft. Rents haven’t reached the same levels, standing at £23 per sq ft, compared with £35 per sq ft in the city centre, presenting a less costly option.

Take-up for offices outside of the city centre has been dominated by demand from occupiers in public services, education and health, accounting for 35 per cent of total take-up in 2018. These occupiers are attracted to the out-of-town market largely because of the strong transport links and for budget reasons.

Flexible office providers have increased their activity in the city and there have been several large deals in the past year, including Runway East signing for 30,000 sq ft at 1 Victoria Street. The significant size of these deals has attributed to the current lack of stock. However, they do provide space for start-ups or smaller companies.

The lack of space in the city centre is putting pressure on the speculative development pipeline. Bristol currently has two developments under construction, both due to complete in 2020. Axa/Bell Hammer’s Assembly Bristol has started on site and will provide 200,000 sq ft of Grade A space and The Distillery by Royal London will provide 90,000 sq ft across three separate buildings.

Away from this there is also up to 850,000 sq ft of potential schemes that are currently seeking planning permission or could be a viable development site.

The development pipeline is positive news for the city centre and will help relieve the pressure on supply. However, there are still options for occupiers looking to build a presence in the city if you look beneath the take-up figures. 

Further information

Read more: Spotlight: Bristol Offices