A refurbished north Bristol office building is now fully let – and has achieved a record rent for the out-of-town market – after securing HR strategy company Northgate Arinso UK as a tenant.
The deal for 12,800 sq ft in 740 Aztec West is being viewed as a sign of the strong recovery in the office park sector, which has lagged the vibrant city centre market for the past year. 
The letting follows a £5m comprehensive refurbishment and pre-letting of the lower floors of the building by owners Legal & General Property (LGP) to IP networking, ultra-broadband access and cloud technology specialist Alcatel Lucent, which has taken 38,000 sq ft on the ground and first floors. The deal was brokered by property consultants JLL’s Bristol office.
Northgate Arinso is paying a rent equating to £21 per sq ft on a 10-year lease – up from the previous record out-of-town rent of £19.50, although still behind the pre-recession headline figure of £23.50.
In contrast, city centre office rents are expected to push through the £30 barrier over the next 12 months due to a big shortage of grade A space.
LGP recently completed a £5m, 30-week refurbishment of 740 Aztec West and it is the first refurbished business park office in Bristol to achieve an EPC rating of A – the highest possible energy efficiency rating achievable in commercial buildings.
Energy saving measures included solar protection, natural passive ventilation, upgraded glazing, roof and wall insulation, heat recovery systems and photo voltaic panels to the roof, which will contribute to an estimated 25 per cent reduction in electricity costs. JLL and Knight Frank are joint letting agents for the building.
Northgate Arinso is relocating from building 730 based on the other side of Aztec West.
The space is currently being fitted out and Northgate Arinso will open its new office for business shortly.
JLL associate director in Bristol, Hannah Waterhouse, said: “The fact that 740 is fully let so soon after completion is a testament to the fantastic quality of the building. It is positive news for the out of town market where we are finally seeing good levels of rental growth. It also highlights that demand for high quality energy efficient space remains strong against a backdrop of short supply. Space of this quality is more often found in city centre offices and L&G will reap the rewards of investing to this extent in a business park location.”
Legal & General UK Property Fund manager Matt Jarvis added: “We are proud to have refurbished the first EPC A-rated building in Bristol. At L&G we don’t just look at how we can deliver sustainability in new developments, but also how we can improve our existing stock to respond to future occupier requirements.
“The fact we have let the final space in 740 Aztec West within a few months of completion is a strong endorsement to the quality of the refurbishment and the rising value that forward thinking occupiers place on energy efficiency.”
Alder King acted for Northgate and JLL and Knight Frank acted for LGP.
