The last five years have been tough for Bristol's commercial
property market, but there are finally signs of an upturn. Work has
started on speculative developments like 2 Glass Wharf, a
development next to the Burgess Salmon offices in Temple Quay, and
66 Queen Square.

Jeremy Richards, head of the Bristol office at Jones Lang
LaSalle, said: "It has been particularly encouraging to see the
return of speculative development in Bristol over the past 12
months, not just in the commercial property market but in the
residential market also, indicating a general rise in confidence
levels across all sectors.

"With cranes on site at developments such as 66 Queen Square and
2 Glass Wharf, and more commercial office space being converted
into residential properties, 2013 will be seen as a turning point
in Bristol and a major step in the right direction for occupier
levels and inward investment in 2014."

Analysts see these developments as encouraging signs for
continued recovery for Bristol's commercial sector, which should
drive further growth well into next year:

"In a national context the size of these developments is large,"
said Simon Price, head of agency at Alder King.

"This is a real vote of confidence for Bristol. Both developers
undertaking these schemes looked at various locations outside
London and they selected Bristol because they have seen an upturn
in the market and the prospect for growth. It is a big test for the
market."

Much success will depend on whether small business growth will
drive uptake, ensuring that the new developments do not sit vacant
for too long. The latest property report by CBRE showed take-up of
office space in the city centre was 427,673 sq ft, up from 409,225
ft during the same period last year; take up at Colliers
International's Bristol office rose by a massive 42 per cent on
last year.

Factors in Bristol's favour include cheaper South West rents over London, and
the decision to build the Hinkley Point C nuclear reactor in reach
of Bristol, which will see residential property demand rise along
motorway routes, and commercial property increase from supporting
businesses.

Mr Price said: "We are now seeing more of a focus on
better-quality space as companies look to make a statement with
their staff and clients.

"What they want is great flexibility. They do not know whether
they will need to contract or expand in three months. So the
managed office business is thriving.

"News of the improving market will come at a very good time for
speculative developers, giving them many reasons for optimism going
into 2014."

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