Incentives on Bristol offices to move in as Grade A space declines – Jones Lang LaSalle
There has been a steady stream of secondhand office space coming onto the Bristol market, but the volume of Grade A office space has continued to diminish. So says Jones Lang LaSalle, which says that occupiers in Bristol are becoming increasingly reliant on this secondhand space as new developments remain scarce.
Ian Wills, director in the office Agency at Jones Lang LaSalle in Bristol, says the second half of this year will see some new Grade A supply coming to market, but that there are unlikely to be any speculative starts during the next 12 months as developers remain cautious. The new H2 supply expected is HDG Mansur’s 110,524 sq ft Bridgewater House, and 2 College Square, Harbourside, which includes 26,200 sq ft of speculative space, he notes.
Recent research from Jones Lang LaSalle shows that take-up in Bristol during H1 2011 was 391,000 sq ft, of which Bristol city centre offices accounted for 62%. Prime rents in Bristol are stable at £27.50 per sq ft and incentives in the city are still generous, JLL says, with rent-free deals of up to 18 months on a five-year term, and up to 36 months on a 10-year term. The firm expects incentives to move in over the next year, as Grade A supply continues to decline.