The race for good quality office space in Bristol is set to heat up over the next 12 months as supply levels continue to fall. Our research shows that the vacancy rate is currently under 4 per cent with around 500,000 sq ft of space available in the city.

The development pipeline doesn’t offer much comfort for those with lease events or expansion plans coming up and wanting space over 10,000 sq ft: there is just 290,000 sq ft currently being built, of which 200,000 sq ft is already let and rumours of interest in the remaining 90,000 sq ft. Any further new developments will not start on site until next year with completion dates not expected until Q4 2021 at the earliest.

Bristol is witnessing unprecedented levels of low office supply with office stock in the city centre having fallen by 84 per cent between 2010 and the present time. This leaves occupiers with little choice but to consider pre-lets in the coming years.

However, they need to start making plans now to avoid missing out. In previous years occupiers may have been able to wait until nearer the time of their lease event to seek new space, but the current constrained Bristol office market means that they need to get ahead of the game and consider their options now.

Looking forward we could see speculative development offering one solution as it provides greater security for tenants who need to move rather than relying on the relative uncertainty of signing a pre-let. While many office properties in Bristol have already been through a refurbishment process recently, we may also see more refurbished space coming to the market, which could help bridge the gap between a lack of Grade A stock and existing low quality stock.

The office market in Bristol has augmented its profile on both a national and international platform in the last five years having secured numerous high profile including lettings such as BT, EDF, Mapfre, KPMG and PWC. This has been supported by the city establishing itself as a highly appealing destination to live and work with the added benefit of a reputable university providing a strong talent pool.

We have also seen the city centre reinvent itself to create a popular core that attracts visitors seven days a week with an impressive leisure and retail line up. The challenge for Bristol moving forward will be to ensure that there is enough Grade A office space available in its centre to continue to attract and meet the demands of both independent and corporate occupiers.

Further information

Contact Savills Office & Business Space