Take-up of office space in Bristol reached 440,562 sq ft last year – 5% up on 2023, but 21% below the five-year average, according to the latest data from Colliers.
The company’s Regional Office Snapshot found take-up of Grade A space in Q4 reached its highest level since Q1 2024, with significant lettings to AECOM, DNV, Softcat, and Mazars, recorded in the final quarter. The largest Q4 deal was AECOM taking 15,124 sq ft of space at the newly completed 3 Rivergate in Temple Quay.
The delivery of more than 200,000 sq ft of new speculative space at the Welcome Building (pictured) and 3 Rivergate caused the Grade A vacancy rate to rise from 2.1% in Q3 to 3.1% at year-end. Colliers is currently tracking close to 500,000 sq ft of potential occupier requirements across the legal, financial, professional services and educational sectors for 2025.
James Preece, director in the national offices team at Colliers, said: “The increase in vacancy is a reflection of much-needed new stock rather than a decline in demand. Occupiers continue to seek best-in-class office space, particularly in well-located, sustainable buildings. There is already strong interest in the latest Grade A completions, and we expect this to translate into significant activity in 2025.”
Guy Grantham, director of research and forecasting at Colliers, added: “Q4 was quieter than hoped, but Grade A demand held firm, hitting its highest level since Q1. Despite short-term fluctuations, Bristol’s Grade A office market remains resilient, with strong demand for prime space expected to drive rents above £50/sq ft in 2025.”
