A lack of supply in Bristol has seen Q1 take-up tumble by 53% to 58,141 sq ft year-on-year, according to the latest figures from Savills. Based on a 10-year average, take-up is down by some 55%. Grade-A supply is down by 15% year-on-year to just 101,822 sq ft.
Chris Meredith, director in the office agency team at Savills Bristol, said: “Bristol has seen fairly low take-up in Q1 2019, which can largely be attributed to the chronic lack of Grade-A office stock currently available in the city. Demand, however, remains encouraging, with occupiers still seeking to absorb speculative space prior to completion.”
During the first three months of this year, the most active occupiers have been in the insurance and financial services sector, accounting for 46% of take-up. The TMT sector, which has been the most active occupier type for the past two years, slipped to third, accounting for just 11% of take up.
“Looking ahead, Q2 is expected to be far more positive, with significant deals already in the pipeline,” added Meredith.
“Political and economic uncertainty has undoubtedly affected decision making. However, with no end in sight we are hopeful that we will start to see business as usual as we head into the second half of the year.”
Main image © High Level/Rex/Shutterstock
Key figures
- £36 per sq ft – 2019 rental forecast
- £17.1m – Q1 total office investment
- 58,141 sq ft – Q1 total take-up
- 513,504 sq ft – Q1 total availability
Join the discussion about the Bristol market by attending our Question Time Bristol event this Wednesday (15 May). Find out more and register at secureforms.egi.co.uk/QuestionTimeBristol-2019
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