Bristol Office Space – Market Overview – 2006

Market overview of Bristol office space


• Office lettings in Bristol City centre during 2006 totalled 506,600 sq ft (47,063 sq m) compared to 654,000 sq ft (60,759 sq m) in 2005 and a 5-year average of 626,300 sq ft (58,185 sq m).

• Take-up in the out-of-town of Bristol office market was 270,900 sq ft (25,166 sq m) in 2006 compared to 382,500 sq ft (35,535 sq m) in 2005 and a 5-year average of 298,700 sq ft (27,700 sq m).


• There is only 86,500 sq ft (8,036 sq m) of Grade A offices currently available in Bristol City centre with 126,600 sq ft (11,761 sq m) currently under construction. Total current supply is 865,000 sq ft (80,358 sq m).

• The out-of-town market has approximately 150,000 sq ft (13,935 sq m) of accommodation currently under construction, with virtually no new offices available for immediate occupation. There is 286,800 sq ft (26,644 sq m) of existing stock available.


• Prime city centre rents stand at £26.00 per sq ft (£280 per sq m) with a deal currently being completed at £27.50 per sq ft (£296 per sq m).

• Out-of-town rents have been static at £20.50 per sq ft (£221 per sq m) for several years although this is forecast to increase to £22.50 per sq ft (£242 per sq m) in 2007.


• UK institutional investors competed aggressively against overseas investors resulting in achievable prime yields in the city centre of around 4.5%.

• Strong demand combined with a lack of supply saw an increase in the number of deals on part-let schemes incorporating a vendor’s rental guarantee on vacant space.