Keeping it going

After a year which beat expectation, the hope is that
the pace can be maintained although there are some
concerns in the region that 2011 will ease back again.
There appear to be many reasons for this view, including the national problem of a fast declining stock of Grade A space. The cautious approach is understandable given the global problems engendered by the earthquakes and the future of government spending cuts. With the nearby areas stretching through Southampton and Portsmouth doing well, notably in industrials, the suspicion must be that the South West is likely to perform more strongly. Jeremy Hughes of BNP expects a “harder year in the market with the dynamics affected by the lack of prime stock. If the building is right, it will go and the larger companies can afford to move.”

The rationalisation of distribution so that companies are under one roof continues to be a major trend, which can be seen in his case with the interest from occupiers in the 8,918 sq.metres (96,000 sq.ft.) property Hughes is marketing in Trowbridge. Another major deal by BNP and King Sturge is the Scottish company WH Malcolm taking 23,225 sq.metres (250,000 sq.ft.) at Western Approaches in the ever popular Avonmouth to satisfy a distribution contract.

DTZ also sounds a cautious note. ”Current requirements suggest that subdued transaction volumes are likely in early 2011 and the annual total is unlikely to reach that of 2010. ”On the other hand,” it said: ”we anticipate an increasing proportion of Grade B take up, following a return from the mid sized professional and media sectors. Bristol also has a reputation for its clustering of firms in the sustainability sector and take up from these types of companies could make some net subtractions from availability.” Ben O’Connor of GVA said: “Life has improved since the end of 2010 and we have had more viewings, bringing cautious optimism, although these are mainly for small offices. But there are a handful of larger deals in the pipeline.” The final point of optimism is that only the new 10,219 sq.metres (110,000 sq.ft.) Bridgewater House will be completed this year so there could be a long wait for any speculative space. Landlords hope this will allow a real improvement in the rent free periods they give.