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Demand for office space in Bristol has soared in the first half of 2022 despite ongoing uncertainty in the wider economy, a new report has found.

The city saw the highest take-up levels for the second quarter of the year in the last three years - in the city centre and out-of-town markets - the Bristol Office Agents Society found.

Bristol’s city centre market saw 31 deals completed in the second quarter, with a take up of 143,609 sq ft. It brings the total take up for the first half of 2022 to 377,884 sq ft, which is more than 100,000 sq ft ahead of the five-year average for this period.

Following several larger deals in the first quarter, there have been a further four lettings in the second quarter, the largest of which is Pax8’s acquisition of 24,375 sq ft at Royal London’s newly developed The Distillery.

Runway East has also expanded into a further 16,442 sq ft at One Victoria Street; HLK have signed a pre-let of 12,592 sq ft at One Portwall Square; and Techmodal have moved to 11,447 sq ft at the newly refurbished Pivot+Mark building on Baldwin Street.

Headline rents in Bristol city centre are stable at £42.50 per sq ft, the Bristol Office Agents Society said.

Following a positive start to 2022, the out-of-town market has seen a "more subdued" second quarter with take up of 46,614 sq ft - although it is the highest second quarter take up for the last three years. A further 10 deals were transacted in the last three months, the largest of which was AE Technology’s freehold acquisition of 20,829 sq ft at 2420 Aztec West.

Martin Booth, partner at Knight Frank, said: “With the half-year figures at their highest level for six years there is a real positivity in the office market. Whilst there is ongoing office development within the city, there is a real paucity of space to be delivered this year which will further tighten supply in the short to medium term."