Bristol

The occupier market has remained robust in Bristol during 2020 in comparison to other cities. Total activity for the city centre and out-of-town markets amounted to 775,000 sq ft, around 13% below the ten-year average in both markets.

This healthy performance was enhanced by some exceptional deals earlier in the year (74,000 sq ft to Osborne Clarke at Finzels Reach and 132,000 sq ft to Babcock at Bristol Business park) as well as 170,000 sq ft of activity in the city centre during Q4. This included key deals to DAS UK at Trinity Quay (37,828 sq ft) and Jacobs UK Limited (35,291 sq ft) at One Glass Wharf.

While several requirements have downsized and been delayed since the summer, we are aware of substantial requirements that are still active in the city centre, including 50,000 to 60,000 sq ft to BBC studios, which we understand to be under offer.

On the supply side there has been a major boost to the market as CEG has started on site with its 184,000 sq ft EQ development. The scheme has strong environmental credentials and large amounts of space devoted to health and wellbeing.

In addition, the speculative 92,000 sq ft Distillery at Glassfields and the 201,000 sq ft 1 Assembly (fully pre-let by BT) are both due to complete during the first half of the year. One Portwall Square and Halo at Finzels Reach are also due to complete later in 2021, with just under half of the total 150,000 sq ft still available.

Headline rents remain at £35.50, although higher rents have been achieved on a small number of sub-10,000 sq ft lettings. However, rent-free periods have started to move out.

TAKE UP Q4

City Centre

175,106 sq ft

Out of Town

53,806 sq ft

HEADLINE RENT

City Centre

£35.50 per sq ft

Out of Town

£23.50 per sq ft

UNDER CONSTRUCTION

Total

621,000 sq ft

Prelet

45%

PRIME YIELD

Q4 2020

5%

TOP FIVE DEALS Q4

KEY SECTOR ACTIVITY 2020

Engineering consultancy

29%

Legal services

23%

Property services

8%


TAKE-UP

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