Office rents in Bristol grew at a faster rate than any other UK regional city last year, according to Knight Frank’s 2023 UK Cities report.
In 2022, office rents in the city rose from £38/sq ft to £42.50/sq ft – a 12% increase. Bristol also enjoyed a 15% increase in office take-up in 2022 versus 2021, which led to an availability rate of just 5.8% at the year end – close to an all-time low.
And with only 590,000 sq ft of speculative space currently under construction, but circa 1,500,000 sq ft of lease expiries expected between 2023-2025, Knight Frank said the Bristol office market will continue to experience an acute undersupply of high-quality space in the years ahead, which could cause rents to grow to £44/sq ft over the next year.
Steve Oades, partner and office head, Bristol, at Knight Frank, said: “Bristol’s leading educational institutions, high standards of living and strong transport links to London have contributed to its popularity with talented young professionals, driving increased investor and occupier interest in the city centre.
“Post-pandemic occupiers, recognising the importance of a sustainable, vibrant and attractive workplace for attracting and retaining the best talent, are driving rents for best-in-class office space in Bristol.
“Having recorded extremely strong rental growth over the past year as accelerated occupier demand and constrained development squeeze available stock, investors capable of delivering sustainable, well-located and amenity-led workplaces, as well as those able to upgrade existing assets to meet occupiers’ ESG and wellbeing requirements, stand to benefit from further growth in the coming years as a widening pool of employers sharpen their focus on the highest-quality space available.”
