Continued strong demand for high-quality offices to keep Bristol at top of national rent rankings
Office rents in Bristol city centre are forecast to rise by 25% over the next five years, maintaining their position as the highest in any major city outside London.
At the same time nearly 500,000 sq ft of high-quality space is being sought by firms in the city’s buoyant legal, financial, professional services and educational sectors as the trend to relocate to higher spec offices continues.
The rental increase – from £48 per sq ft to £60 per sq ft – comes after a strong year for the Bristol market and despite a flood of new speculative Grade A space.
In 2023 rental levels for prime city centre office space in Bristol – then at £42.50 – were the same as those in Birmingham and Edinburgh.
However, last year’s sharp rise to £48, on the back of a severe shortage of Grade A space, put the city at the top of the ranking for the first time.
Now a forecast by international property consultancy BNP Paribas Real Estate suggests Bristol office rents will stay the most expensive in the period to 2029 on the back of strong demand from its creative and professional services sectors.
As recently as 2017, the record rent in Bristol city centre was £28.50.
BNP Paribas national markets head Simon Williams said regional markets were demonstrating strong fundamentals, supported by infrastructure investment, economic diversification and increased corporate relocations.
“We are seeing regional office markets come into their own,” he added. “In cities like Birmingham, Bristol and Leeds, demand for high-quality office space is accelerating, while supply remains limited. As a result, rental growth in these cities is on course to outstrip historic norms.”
The research also says the office market was no longer one where passive capital appreciation delivered reliable returns.
Investors were increasingly focused on stock selection, asset repositioning and income growth as key drivers of performance.
“Simply holding assets is no longer enough,” Simon Williams said. “Investors must actively manage their portfolios, ensuring buildings meet modern occupier expectations – whether that means upgrading ESG credentials, reconfiguring layouts or enhancing amenities.
“Those who take this approach will be best positioned to benefit from the UK’s clear rental growth trajectory.”
A separate report from real estate agency Colliers said the addition of 200,000 sq ft of prime space at the Welcome Building (formerly 4 Glass Wharf) and 3 Rivergate – both at Temple Quay – had led to a quarter-on-quarter increase in Grade A vacancy from 2.1% to 3.1% at the end of last year.
Despite this, the market outlook remains positive, with Colliers tracking close to 500,000 sq ft of potential occupier requirements across the legal, financial, professional services, and educational sectors for this year.
Colliers national offices team director James Preece said: “The increase in vacancy is a reflection of much-needed new stock rather than a decline in demand.
“Occupiers continue to seek best-in-class office space, particularly in well-located, sustainable buildings.
“There is already strong interest in the latest Grade A completions, and we expect this to translate into significant activity in 2025.”
Colliers research and forecasting director Guy Grantham added: “Bristol’s office market had a steady year overall, with 440,562 sq ft of take-up, 5% up on 2023 but still 21% below the five-year average.
“The fourth quarter was quieter than hoped, but Grade A demand held firm, hitting its highest level since Q1.
“Despite short-term fluctuations, Bristol’s Grade A office market remains resilient, with strong demand for prime space expected to drive rents above £50 per sq ft in 2025.”
