Demand for office space in Bristol city centre has caused rents to soar to record levels, according to a new report.
Office take-up for the first half of 2025 "maintained steady momentum" in the city centre, the Bristol Office Agents Society research found, while the out-of-town market saw its two largest deals since 2020.
Headline rents in the city centre have now increased to £49 per sq ft.
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Bristol’s city centre market saw 20 deals completed in the first quarter, with a total take up of 92,995 sq ft, and a further 25 deals completed in quarter two, with a take up of 118,658 sq ft.
While this is behind the five and 10-year average, there are a number of deals in the pipeline for the second half of the year.
The largest deal of the first six months of the year was energy firm Ovo’s acquisition of 22,892sq ft at the newly refurbished The Crescent, and was closely followed by Unite’s move to 22,000sq ft of new build space at Tristan and Trammell Crow Company’s Welcome Building.
Current levels of supply remain very low in the city centre and following the practical completition of Welcome Building, there are now no new developments on site.
Comprehensive refurbs have recently been completed at Aberdeen’s Queens Quay and CEG’s The Crescent, and others are underway at APAM’s One Friary and Skelton’s Embarq.
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According to the report, these will meet current demand levels, but leave occupiers with very limited choice and it is expected there will be a "severe shortage" of supply in the next two to three years unless more schemes come forwards soon.
Meanwhile, the out-of-town market has achieved take up in line with the average figures for the period, with 107,780sq ft of take up in the first quarter and 143,970sq ft in the second.
The market has seen its two largest deals in the last five years completed in the first six months of 2025: EDF’s acquisition of 78,284sq at CEG’s newly refurbished 1000 Aztec West in Q1, and Babcock’s sub-letting of 87,648sq ft of surplus space at 100A Bristol Business Park to Rolls Royce in Q2.
Headline rents were also increased at 1000 Aztec West which achieved £27 per sq ft.
Phil Morton, of Morton Property Consultants, said: “Occupiers remain resilient, securing prime office space at premium rents despite tightening supply. Demand for quality remains strong, underscoring confidence in the market. Developers and landlords bold enough to defy the scarcity trend and deliver new stock stand to benefit most—positioning themselves as tomorrow’s winners.”
Christopher Meredith, director in office agency at Savills, added: “The Bristol City Centre continues to dominate activity in the region. While current requirements can still be met, we’re at a pivotal moment in the market cycle.
"The long-term pipeline is constrained, with no speculative development underway due to viability challenges and although rents are rising, it’s a delicate balancing act. As a result, we’re seeing a growing shift toward pre-let agreements as occupiers look to secure future space in an increasingly competitive environment.”