Sharp rise in demand for office space

A leading UK property consultancy is reporting that Bath is bucking the national trend of subdued business activity, with a double digit increase in take-up of office space.

Carter Jonas recorded a 19 per cent increase in contracts in the city, led by the media sector and tech-based industries, with over 114,929 sq ft transacted last year, compared with 96,400 sq ft in 2017.

Over the past decade, take-up in Bath averaged just under 100,000 sq ft per annum and has been relatively consistent on an annual basis, although there is now, according to the firm, a shortage of desirable space.

Partner Philip Marshall said: “It is encouraging to report such a strong year, with the amount of space transacted reaching towards the top of the ten-year average.

“The city, however, continues to suffer from a lack of quality supply and whilst our research illustrates demand from a wide range of occu- piers, actual take-up is being suppressed and causing occupiers to look elsewhere.

“Businesses are placing greater emphasis on the quality of a building, and its environment is now more important than location alone.

“This is making it increasingly difficult to let some lower quality space, as, despite high levels of overall demand, many occupiers are looking for open plan space on a single floor.

“One consequence is that businesses are becoming increasingly footloose between Bristol and Bath.”

In terms of price the city is also able to command a high premium, so the average price tag is £28 per sq ft, for better quality stock, up from £26 a year ago, though a small number of outstanding deals have achieved just over £30.

Overall the company’s regional survey concludes that investor demand remains strong for office space and generally the South West market continues to show signs of resilience.