There has been an improvement in the regional office market, according to the latest analysis from independent property adviser GVA. Its report, The Big Nine, indicates a more stable economic outlook is raising business confidence and boosting property demand.
The nine GVA regional office centres recorded 1,730,000 sq ft in transactions for the second quarter, which was seven per cent above the five-year quarterly average.
The city centre market made up over two-thirds (67 per cent) of this total and recorded a take-up of 1,161,000 sq ft, which was 14 per cent above the five-year quarterly average. In the second quarter, the out-of-town market dropped five per cent below the quarterly average.
In Bristol, the take-up was well above average at 143,931 sq ft. The five-year quarterly average is 106,128 sq ft. The Imperial Tobacco deal for 85,000 sq ft on Winterstroke Road was the second-largest transaction this quarter among the nine centres studied. Along with the out-of-town take-up, Bristol recorded 190,986 sq ft in the second quarter.
Richard Kidd, the Director of Office Agency in the Bristol office of GVA said, “Our Q2 analysis of regional office take-up is encouraging and reflects what is happening here in Bristol.
“Sentiment is up on what was already a positive Q1 and we anticipate that take-up figures will continue to improve in the medium term.
“However, the concern remains that if demand for Grade A stock increases then without speculative development (…) an ominous tipping point could present itself.”
The report also noted that while the amount of new development is still low landlords are offering “significant incentives” to tenants to take-up existing space.
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