Prime office rents in Bristol city centre have increased by 4 per cent, the latest research from Colliers International reveals.
The findings show that rental growth throughout the UK averaged 6.5 per cent year-on-year during Q2 with strong expansion recorded in many regional CBDs.
However, it is Bristol that is closest to joining Manchester and Birmingham in the £30 per sq ft club, with Grade A rents rising to £28.50 per sq ft – well above the national average of £23.98 per sq ft.
There was a 2 per cent rise in rental values for out-of-town Grade A space in Bristol, taking the average to £21.50 per sq ft. Secondary space saw rises of 3 per cent in the city centre, and 7 per cent for out-of-town locations, taking rents to £19 per sq ft, and £15 per sq ft respectively.
There were also rises throughout the South West region with Gloucester leading the way with a 19 per cent increase, taking average Grade A rents to £18.50 per sq ft. Other locations reporting rental increases for primary space were Bournemouth (8 per cent), Plymouth (7 per cent), Swindon (7 per cent) and Exeter (3 per cent).
Gloucester also saw the greatest rental growth for secondary space, where an 18 per cent rise took the average price to £10 per sq ft. There was an 11 per cent rise in Bournemouth and Cheltenham, a 10 per cent rise in Exeter and an increase of 5 per cent in Plymouth and Swindon.
James Preece (pictured), Colliers’ Director of National Offices in Bristol, said: “The great rental growth we are seeing on the whole in the primary and secondary markets is due to significantly limited supply.
“Middle tier occupiers are now faced with the prospect of having to pay more to be in a better location right now or wait for the delivery of new stock.
“Regardless, pent-up demand will exacerbate supply shortages and as a result there is a potential for continued rental growth.”
