Bristol’s office market has bounced back strongly from the impact of the pandemic to achieve the highest take-up figures since 2018, according to the latest research from the city’s property agents.
Both city centre and out-of-town markets also show no signs of slowing in the face of recent turmoil on the investment markets and mounting economic uncertainty. 
The Bristol Office Agents Society’s third-quarter report shows take-up so far this year has already reached the levels for the whole of 2020 and 2021, while deals already in the pipeline will put the total figure for this year above the five-year average.
Twenty-six deals involving city centre offices totalling 131,197 sq ft completed in the third quarter with an average size of 5,046 sq ft, including three lettings over 10,000 sq ft – the largest being the West of England Combined Authority’s acquisition of 19,817 sq ft at XLB’s newly refurbished 70 Redcliff, where it is moving to from 3 Rivergate at Temple Quay.
Insurance group Canada Life – which is also based at 3 Rivergate – committed to 13,260 sq ft of space at Royal London’s 92,000 sq ft Distillery development on Avon Street, pictured above, while global financial markets analytics firm Jump signed to take 11,903 sq ft at L&G’s Redcliff Quay pictured. 
The headline rent in Bristol city centre – at a record £42.50 per sq ft – is now the highest of the ‘big six’ English cities with incentives at a low level.
The out-of-town market also had a strong third quarter with take up of 82,220 sq ft on 10 deals, with the average size signalling a return of larger deals, according to the Office Agents Society.
The largest out-of-town letting was 21,568 sq ft at Pavilions for an unnamed occupier while a subsidiary of BAE took 15,917 sq ft at Filton 20 and You Health acquired 14,090 sq ft at 1400 Parkway North.
The development pipeline remains strong, according to agents, with the construction starting recently on Candour’s The Welcome Building, which will provide 206,409 sq ft of Grade A space when completed in the heart of Bristol’s Temple Quarter. 
Comprehensive refurbishments have also started at V7’s 100 Victoria Street, L&G’s North Quay House on Temple Back and APAM’s One Friary at Temple Quay, which between them will provide 144,000 sq ft of Grade A space over the next 12 to 24 months.
The Office Agents Society said ESG (environmental, social and governance) and wellbeing were now at the forefront of most acquisitions and tenants were prepared to pay more for buildings that could offer enhanced facilities to staff.
Morton Property Consultants director Phil Morton, pictured, said a two-tier market between offices with good ESG credentials and those without would continue as aspects such as carbon footprints increasingly became tender requirements.
“The premium rents possible for the right space is now the driver for forward-looking landlords to develop and refurbish to the standards clients expect, while occupiers view the space they occupy as a powerful HR asset rather than a fixed-cost liability,” he added.
Savills office agency director Chris Meredith added: “The Bristol office market has been extremely buoyant this year, with Q1-Q3 take up trending as one of the strongest on record.
“Demand continues to be focussed for the best-in-class office space. The office has not only become an important tool to attract workers back but also to encourage collaboration, support wellbeing and provide employees with the best experience while in occupation.
“There is a lack of this Grade A stock in the market and so it’s encouraging to see new constructions and refurbishments commence to feed this demand which has seen rents increase to £42.50 this year.”
