Property agents have warned that the major shortage of prime city centre office space in Bristol will continue at least into next year following strong take-up over the past three months.
Latest figures released by the Office Agents Society of Bristol for the first quarter show 219,420 sq ft of space was snapped up – 50% above the 10-year average. 
The Society said the strong take-up, which it described as reflecting an “outstanding level of demand”, followed a sustained period of growth and had now brought availability down to approximately 455,000 sq ft – just 3.6% of office stock.
It said with new development completions limited to just 93,000 sq ft this year – and no completions scheduled next year – the shortfall in high-quality office stock would not be redressed in the near future.
Key transactions in the quarter included Bristol-based private wealth management firm Sanlam’s acquisition of 20,000 sq ft in One Temple Quay, Call Credit’s acquisition of 16,000 sq ft at Programme on The Pithay, and international law firm Osborne Clarke’s pre-letting of nearly 74,000 sq ft at Halo, pictured, part of phase two of the successful Finzels Reach redevelopment.
Conversely, the out-of-town market remained subdued with take up of just 29,089 sq ft, the Society said.
Knight Frank office agency team partner Martin Booth said: “The last two quarters have provided record-breaking levels of take up for Bristol’s city centre office market. That in itself is reason to be positive about the office market going forward.
“More noteworthy, in my mind, is the diversity of occupiers taking space which will give the market significant resilience in forthcoming months”.
Lambert Smith Hampton associate director and current Office Agents Society chairperson, Roxine Foster, added: “The strong levels of take-up have led to further rises in rents to record levels across all grades of space.
“In the short term, prudent landlords will need to listen to their tenant’s issues and provide significant flexibility. Those that respond positively to this challenge will likely see high occupancy and greater loyalty moving forwards.”
