Take-up

Q3 2023 take-up totalled 77,000 sq ft in Bristol city centre. This was below the long-term Q3 average, however, there were 17 deals recorded in the quarter, which was only slightly below the five-year Q3 average deal count.

Grade A take-up was 32,000 sq ft which accounted for 41% of the overall take-up. This is the largest Q3 proportion recorded in the last ten years. This further enforces the flight-to-quality we are seeing across the wider market as occupiers continue to look for the best-in-class space.

Supply

Total supply currently stands at 913,000 sq ft. This equates to just 1.6 years of supply, and with Savills regarding anything under two years as an undersupply, availability within the Bristol city centre market remains extremely limited.

Prime availability was 187,000 sq ft at the end of Q3 2023. There has been an increase in Prime supply compared to Q4 2022, following the imminent completion of EQ and Assembly. However, Grade A and Prime supply remains constrained, with approximately 0.3 years of availability, based on average Grade A take-up in the market.

Take-up by business sector

The ‘Professional’ sector was the most active in H1 2023, accounting for 28% of total take-up. Take-up was spread across ten transactions which was double the ten-year H1 average deal count for the sector.

Elsewhere, ‘TMT’ was the second most active, accounting for 13% of total take-up. There was only one deal over 5,000 sq ft as demand was focussed on smaller, fitted spaces that allow these companies to avoid significant capital expenditure costs.

Rents

There was no increase in the prime rent in Q3 2023, which currently remains at £42.50 per sq ft. However, Savills is aware of space under offer in excess of this current headline. Bristol continues to have one of the highest prime rents across the UK Big 6 markets, and has experienced prime rental growth of 13% since the end of 2019. Savills latest forecasts predict that the prime rent will grow by a further 10% to at least £48.00 per sq ft by the end of 2027.

Interested in other areas of the UK?

View all of our latest Q3 2023 Occupational Office Data research here.