Bristol Office Investment Market Report Summer 2008

Published: June 2008
Source/Company: Colliers CRE

Abstract:
Key points in the report include:

•2007 Bristol office investment transactions totalled £160 million, down 64% on the 2006 total of £450 million.

•Total returns for South West offices in 2007 were -5.6%, compared with 19.2% in 2006. This reduction of return is largely as a consequence of the decline in capital values. The average equivalent yield for South West offices rose from 6.2% in 2006 to 7.2% in 2007.

•The slump in the investment market was in contrast to office letting activity in Bristol, which in 2007 totalled 900,000 sqft compared to 500,000 sq ft in 2006 and a five year average of 685,000 sq ft.

•Colliers CRE predicts total returns for South West offices to outperform the rest of the UK over the next two years.

•Whilst we have forecast marginally negative total returns for South West offices in 2008 (-0.3%), there will be exceptions to this rule, with some good buying opportunities as opportunistic investors seek property investments at historically low prices with the ability to drive value through the implementation of carefully considered asset management plans