Bristol’s rapidly-recovering office market is poised for a number of significant deals over the next few months which will make 2014 the strongest year since before the recession.
Increased take-up in the third quarter means Bristol has already overtaken the annual average for the previous five years.
Now property agents in the city are predicting a powerful end to the year. GVA has made Bristol one of its focus cities in its Big Nine survey of UK centres along with Glasgow and Manchester. 
Bristol’s market will be boosted by the largest letting since 2008 with fast-growing OVO Energy about to complete on its relocation to 70,000 sq ft of prime space at 1 Rivergate, Temple Quay.
Other recent significant lettings include two deals at Kings Orchard -17,000 sq ft to Parsons Brinkerhoff and 15,000 sq ft to Tribal Group.
Spanish insurance group Mapfre is understood to be close to signing for M&G’s 1 Victoria street refurbishment to satisfy its 48,000 sq ft requirement.
The two speculative developments that were started last year have received occupier interest. As reported by Bristol Business News last week, Big Four accountancy firm PwC is to take almost a third of 2 Glass Wharf at Temple Quay – some 30,000 sq ft – at a record rent of £28 per sq ft.
Meanwhile agents say that Skanska’s 66 Queen Square development, pictured above in a computer image,which is due for completion next year, is likely to be taken by a long-running 45,000 sq ft requirement from fellow Big Four accountants KPMG.
Remaining schemes with significant amounts of grade A space in the city include 78,000 sq ft at Temple Back although the top floor is rumoured to be under offer and 78,000 sq ft at Bridgewater House, Finzels Reach.
GVA director office agency in Bristol, Richard Kidd, said: “The level of occupier activity is underpinning decisions by a number of funds to move into the regional city development markets such as Bristol, and this is clearly now paying dividends with much of the new grade A space being let at or before completion.
“Bristol is one of the few cities where we have seen pure speculative development although this still remains difficult to achieve, except where the occupational demand story is absolutely solid.”
Lambert Smith Hampton (LSH) believes a record-breaking year for investment in commercial property in the South West is on the cards as the London market continues to overheat.
Third quarter figures show that £97om has been invested in the region so far this year – a huge increase on the £570m invested in the same period last year.
Darren Sheward, head of office for LSH in Bristol and the South West, said: “South West investment volumes reflect a significant upturn in sentiment amongst investors who have recognised the excellent opportunities the region has to offer.
“London continues to perform strongly and will remain the most important market for some investors. However, capital continues to flow back into the regions in a meaningful way as improving confidence and the price of assets in London prompts investors to look beyond the capital.”
