- General - Record amount invested in Bristol offices
Date: 01 Aug 2016
Office investment in Bristol reached a record £237 million in the first half of 2016, according to international real estate advisor Savills.
Investment volumes in H1 2016 were 140% above the long-term half year average of £98.7 million. Domestic UK investors accounted for £82 million of the deals - 35% of the total - above their long-term average of £49 million.
Key deals included the purchase of Bridgewater House, near Temple Meads Station, by a private investor for £56 million, representing a yield of 5.35%. Prime yields for the market stand at 5.25%.
Andrew Main, director of investment at Savills Bristol, says: "In the first half of 2016 alone we have seen more investment in Bristol offices than during the whole of 2014. Bristol is seen as a solid choice by investors; tenants continue to see it as a very attractive location, whilst decreasing availability of Grade A space means that rents are predicted to rise from their current £28.50 per sq ft to £35 by the end of the decade. We anticipate that investment volumes will remain strong through to the end of the year and beyond."
Demand for office space in Bristol remains high: take up reached 381,291 sq ft (35,421 sq m) in the city centre during the first half of 2016, says Savills. This is well above the long-term half year average of 278,000 sq ft (25,826 sq m) and the strongest first half since 2007.
Savills forecasts that Bristol is on track to reach take up of 800,000 sq ft (74,320 sq m) by the end of 2016, well above the five year average of 533,000 sq ft (49,515 sq m).