Further evidence of a marked improvement in Bristol’s commercial property market emerged today with a report showing that 2013 is on course to far exceed the city’s five-year average annual take up of office space.
The research from leading property agent Jones Lang LaSalle shows that, so far this year, take up stands at just under 430,000 sq ft – nearly 18,500 sq ft more than the figure for the whole of 2012.
With annual take up for the past five years averaging 445,900 sq ft, Jones Lang LaSalle is predicting that 2013's figure will exceed this by around 20%.
Bristol-based Jones Lang LaSalle director Ian Wills said: “There has been a lot of talk for a long time about green shoots but we are finally beginning to see the hard facts which show that confidence and activity is returning to the market.
“If the market continues to perform as it has done over the past few months, we expect take-up to reach around 530,000 sq ft by the end of the year, and this is a strong indicator that the market is now turning a corner.”
Mr Wills said the most significant deal in the past three months had been law firm Veale Wasbrough Vizards’ (VWV) plan to relocate to 39,000 sq ft in Narrow Quay House on the Harbourside. Work to refurbish the building – the former headquarters of rival law firm Burges Salmon – starts next month ahead of VWV’s relocation in 2015.
Mr Wills, who advised on the deal, said: “This shows there is growing confidence among occupiers to think ahead and make an upfront investment to ensure they secure high quality accommodation in the right location.
“It’s a positive indicator that companies are prepared to make the sorts of decisions that wouldn’t have been made this time last year.”
Other headline deals this year include Bristol City Council’s acquisition of 100 Temple Street, pictured, previous the base for accountants KPMG and outsourcing group Capita, the construction of Imperial Tobacco’s 85,000 sq ft headquarters in Winterstoke Road, Ashton Gate, and Barclays Bank’s relocation to new space at Bridgewater House, Finzels Reach. 
Ian continued: “With the change of planning rules earlier this year, some of the poorer office stock is going to be converted into private and student accommodation. This will reduce supply and mean that landlords will be incentivised to upgrade the remaining office stock to ensure they are well positioned to capitalise on demand from occupiers.”
