Many companies in Bristol are expected to adopt a mixture of home and office working following the pandemic, according to the boss of a commercial property firm in the city.
Paul Williams, director at Avison Young in Bristol, said he expects to see an improvement in the “depth" of commercial property deals over coming months with the lifting of Government restrictions - and a phased return of office working.
Activity in Bristol’s commercial property market picked up in the second quarter of the year before slowing in June as caution mounted around the Delta variant, a recent report by Avison Young has revealed.
According to the latest quarterly Big Nine office market update, enquiry levels and viewings in the city increased in April and May to their highest levels for a year as Government restrictions were eased. But activity slowed as the guidance around working from home was extended.
Mr Williams said: "We know that office workers are keen to return for collaboration, team working and the social interaction side of office life, not to mention a change of scenery from the home office.
“We expect hybrid working to be the way forward though for many companies, as we are observing a number of professional services firms favouring a mix of both home and office working, and therefore looking to downsize their space requirements.”
Mr Williams said banks and law firms were, so far, the “most notable” for taking a hybrid approach.
The Big Nine report said the availability of commercial property in Bristol was on an upward trajectory since its cyclical low at the end of 2019 - although it remained less than half the 2012 high.
With 648,000 sq ft of space under construction – 44% of which is pre-let – new supply coming through includes One Portwall Square and eco office building Halo at Finzels Reach.
Completing in 2022 and 2023 are CEG’s 184,000 sq ft glass-fronted EQ development and the next phase of Assembly’s 92,000 sq ft Assembly C on Temple Way.
The market received a further boost with the recent announcement that asset manager Legal & General have agreed terms with Bristol City Council to invest £350m in a major mixed-use development at Bristol Temple Island.
A public consultation is expected soon on the scheme, which will include a conference centre, hotel, 550 new homes and two grade A office buildings.
By far the largest deal of Q2, was BBC Studios taking 60,251 sq ft at Bridgewater House, Finzels Reach, which was recently vacated by EDF.
There were also a handful of transactions around 5,000 sq ft, including lettings to surveyors Hartnell Taylor Cook and recruitment consultant Sanderson in the city centre, and Countryside Properties at Harlequin Business Park.
Total take-up in the quarter amounted to 103,498 sq ft in the city centre and 33,259 sq ft out-of-town - 28% and 19% below respective 10-year averages.
According to Avison Young, Bristol reflects activity across the country, where city centres have seen the most deals.
Total occupier activity across the Big Nine office markets amounted to 1.56 million sq ft during Q2 - 26% down on the 10-year average, but in line with the post-Covid level of the last 12 months.
Mr Williams added: “Many companies are still experiencing uncertainty over employees’ frequency of occupation and occupational densities, although the expectation is that space per employee will increase as wellbeing and the need to attract talent gain higher priority.”
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