intelligence PROFESSIONAL EXPERTISE
PROPERTY
Record volume of office investments
A review of the South West office market in 2017 by CBRE Bristol has revealed that a record volume of over £620m was spent acquiring office investments across the region in 2017 – more than £400m of which was spent in Bristol alone. This was fuelled by a particularly
strong end to the year, which saw deals including the purchase of One Cathedral Square and 10
Canons Way (acquired for £33.5m and £95.5m respectively). Andy Sayner, head of capital
Markets at CBRE Bristol, said: “Investment appetite remains extremely strong for good quality opportunities, with overseas investors, UK funds, institutions, councils and property companies all actively seeking office investments in the city. Looking at the current demand/supply
characteristics of the markets and the strength of the Bristol economy, we expect this trend to continue and where good quality opportunities come to the market, we anticipate highly competitive bidding situations.” Strong underlying market fundamentals are a key driver of demand for office investments in the city. Peter Martin, office agency director at CBRE, said: “Take up in
‘Investment appetite remains extremely strong for good quality opportunities’
2017 was above the five-year average. In addition, there has been a 14% increase in Grade A rents to £32.50sq ft throughout the year. “We started 2018 with a handful
of city centre deals over 10,000 sq ft under offer which will see a strong start for the years take up. Limited availability, particularly for Grade A space, should encourage speculative development.”
Shortage of land may hinder job growth
Bristol's future job growth is in danger of being hindered due to a lack of land available in the right locations for manufacturing and logistics businesses, says property consultancy JLL. JLL is calling for a bold approach to future strategic planning to tackle the issue at a time when the West of England Joint Spatial Plan is at a key stage in its development. JLL says it is vital that land for manufacturing and logistics businesses is allocated in suitable locations both in the city and in the sub-regions and that Bristol considers extending its outer edge or working with other authorities to identify
34 insight MARCH/APRIL 2018
sustainable options for development. Simon Peacock, lead director at JLL in the
South West, said: “It's excellent news that Bristol is prepared to look at building upwards and making efficient use of the brownfield land available, with major regeneration projects such as the Temple Quarter Enterprise Campus a vital part of the jigsaw. Elsewhere in the city, sites no longer suitable for employment use are being developed for much-needed housing. However, we must not forget about key jobs creators such as the manufacturing and logistics sectors, which are being squeezed out of the city as a result, with
very few options in terms of where to go next.” These businesses are often seeking
purpose-built or new space rather than looking to adapt existing second-hand space. Employers will go elsewhere if they can't
find sites to build new facilities where they can retain existing and recruit new staff and access effective transport links, says JLL. Simon added: “Of course, we need to create much-needed housing, hotels and student accommodation but it is also crucial that land is allocated for development for employment – where there is the demand – as well as these other uses.”
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