JLL has forecast a “watershed” year in 2016 for Bristol redevelopment ahead of its annual South West property market review, published today.
Research from the property firm has revealed a combination of strong economic conditions, improvements to the city’s infrastructure and good performance across all sectors as catalysts for redevelopment in the city.
Jeremy Richards, head of JLL’s Bristol office, said: “All development happens in cycles and we are now at a point at which Bristol is ripe for further investment and regeneration. It comes at a time of major investment into the city’s infrastructure including the electrification of the Great Western mainline, the MetroBus and the reconfiguration of Temple Meads, which are only going to add to the city’s appeal as a place to invest in.
“It’s unusual for all property sectors to be performing so well simultaneously, whether that’s hotels, shops, offices or industrial space, and this means there will be a richer, deeper tapestry of property across the city in the coming years as developments of all types vie for sites.”
JLL is predicting work to start on two speculative office buildings in the city centre that will deliver a total of 200,000 sq ft of grade A space into the pipeline.
Hotels, retirement centres and student housing are expected to perform well, with at least four hotels opening in 2016.
The industrial market is also predicted to flourish, with the report finding a 14% increase in shed take-up to 3m sq ft in 2015.
Richards said: “As more and more retailers move online, the need for well-connected distribution centres across the regions intensifies.
“For retailers, it seems the bigger the better, and this year will see the arrival of Bristol’s first warehouse of more than 1m sq ft for homeware store The Range.
He added: “The year 2015 saw an incredibly active investment market with more than 2m sq ft of space in Bristol transacted, which is one of the highest amounts ever. Investor interest is good, the market is strong and demand from occupiers, tenants and consumers is high. The ingredients for an exciting programme of redevelopment and renewal are in place and it’s now for the public and private sector to seize the opportunity that’s on offer.”
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