Bristol supply is set to dwindle with prelets totalling 150,000 sq ft close to being signed.
Professional services firm Arup is in advanced talks to lease up to 40,000 sq ft at Complex’s Redcliff Wharf scheme. If agreed, it will set a record rent for the city above £30 per sq ft.
The letting follows the news that HMRC has opted to lease 110,000 sq ft at Salmon Harvester Properties’ 3 Glass Wharf scheme as part of its 2m sq ft regional requirement.
HMRC has been pursuing one of the UK’s largest requirements since announcing the consolidation of 137 offices into 13 regional centres in June.
The letting will leave sparse space in the city (see below).
Alder King advised HMRC on the move and Bilfinger GVA is advising on overall strategy. BNP Paribas Real Estate acts for Salmon Harvester.
BNP PRE and CBRE advised Complex; Strutt & Parker acted for Arup.
Bristol office market feels the squeeze
Grade-A city centre supply: 72,000 sq ft – the lowest level for at least 10 years. Around 20,000 sq ft is already under offer.
Named enquiries for grade-A space: around 350,000 sq ft, excluding the current large prelet enquiries
Best achieved new grade-A rents: £28.50 per sq ft at 66 Queen Square and 2 Glass Wharf. £30 per sq ft is being quoted on space remaining at 2 Glass Wharf (NFUM) and Templeback (Orchard Street). A prelet at £30 per sq ft headline rent is in solicitors’ hands at Redcliff Wharf.
Market outlook: Bristol is currently behind Manchester (£34 per sq ft) and Birmingham (£33 per sq ft) but lack of supply will see it push through £30 per sq ft in the next six months.
Source: Alder King
• To send feedback, e-mail shekha.vyas@estatesgazette.com or tweet @ShekhaV or @estatesgazette
