OFFICE MARKET TAKES HYBRID WORKING IN ITS STRIDE

More than 1.7 sq ft of office space was transacted last year across the South West, signalling that office take-up was back to its 2019 pre-pandemic level and tracking just above the five year average.

That’s according to commercial property agents Alder King.

The star performer was the Bristol city centre market where Q4 take-up last year reached 250,000 sq ft, its second highest single quarter level since 2016, beaten only by Q4 2019. Gloucester also recorded increased take-up, with a number of locations there setting new headline rents.

“The recovery reflects a growing acknowledgement of the benefits of office working, from social interaction and collaboration, community and training,” said Simon Price, Alder King’s head of agency.

“Many firms have adopted at least a shortterm move to hybrid working over the last two years but are expecting more staff to return to the office at least part-time this year as restrictions are lifted. They are also reducing the size of their accommodation but trading up in quality.”

“By far the most noticeable trend in the office market is the increased focus by developers, investors and occupiers on employee wellbeing and building sustainability, brought about in part by the pandemic but also last year’s COP26.”

According to real estate adviser Avison Young, in Bristol, the BBC’s commitment to the city was a headline deal.

The city continues to see an increased demand for flexible workspace providers, with both Runway East and DeskLodge taking space in 2021.

Demand for Grade A space continues to be relatively robust, with the secondhand letting environment seeing a greater impact.

There is continued development appetite with several schemes on site, including CEG’s 184,000 sq ft EQ, the 200,000 sq ft Wellcome building and the next 120,000 sq ft phase of Assembly,

In addition, the comprehensive refurbishments of Tower House and the Crescent Centre are due to come to market in 2022.

Commercial property agents Bromwich Hardy say “doommerchants” are wrong to write off the strength of the office market.

Tom Bromwich said: “The pandemic has dominated all markets over the past two years. It continues to change the way many companies do business – with all the knock-on effects that has for the office market – and looks likely to remain a presence for some time to come.

“We’ll wait to see exactly how the office market develops – but the initial evidence suggests that the doom-merchants who predicted its imminent collapse will be proven wrong.

“Demand for high-quality accommodation remains strong with companies continuing to seek a physical home for their businesses despite the rise in remote and hybrid working. We remain optimistic that as the pandemic recedes, the office market will respond with some strength, with a particular focus on high-quality refurbishments.”

Minster Exchange development in Cheltenham nears completion

Work on the £6.8 million flagship scheme in Cheltenham town centre, known as the Minster Innovation Exchange, is nearing completion.

The innovative modular construction 20,000 sq ft scheme will offer flexible workspaces, a 300-person capacity performance arena, cafe, community and education space.

Ecotricity brings M5 eco business park back to the planning table

Stroud-based green energy supplier Ecotricity has revisited plans for its long-awaited eco- park development alongside the new wooden stadium it plans to build for football club Forest Green Rovers, next to Junction 13 of the M5 motorway in Gloucestershire.

The revisited plan includes the all-wooden 5,000 seat football stadium and the use of land on both sides of the A419 to include a green tech business park. The site will feature 38,000 sq metres of o ce space and 18,000 sq metres of industrial space, designed to host companies working in the zero-carbon economy.

The Minster Exchange will provide modern workspace for the cyber tech, digital and creative sectors, a Growth Hub to support business development.

But the modular design has caused some comment from locals, with a few not liking the urban appearance of the buildings next to the Minster, the town’s only remaining medieval structure.

Rebellion receives eight figure funding from HSBC for Oxford HQ

Oxford-based games developer Rebellion has received an eightfigure funding package from HSBC to scale up and open bigger headquarters.

The company is purchasing a new HQ in Oxford – the former Osney Mead o ce of publishers Newsquest, which is more than twice the size of its current main o ce. The funding will also support the expansion of the game developer's Didcot studios.

The new five-acre site will more than double the size of its current space, taking it to 217,800 sq ft.

Rebellion CEO Jason Kingsley said: "The new site in Oxford will allow us to continue to hire additional sta , as well as providing increased space for our o ces and creative studios.

"The funding has also allowed us to remain agile and invest in new technology, as we work within an industry that is constantly evolving. Creativity is at the heart of what we do and the support from HSBC UK has given us the freedom to continue to champion this."

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Cheltenham cyber company invests in expansion

Salus Cyber has taken new o ces at Eagle Tower, Cheltenham. The company has secured 710 sq ft of o ce space in Eagle Tower on the 5th floor with views over Cheltenham College.

Salus Cyber was founded in 2017 and now has a team of 12.

Chief Executive O cer, Jason Kalwa, said: “We feel Eagle Tower facilitates growth and an opportunity to network. As a landmark of Cheltenham, we felt it was a symbolic place to HQ our business moving forwards”.

Eagle Tower is Cheltenham’s only tower block, which was constructed in 1969 for its original tenant Eagle Star Insurance. It was bought by its current owner, successful property development veteran Mel Gri n, in 2003.