News / Property
Are manufacturing and logistics sectors being squeezed out of Bristol?
Bristol’s future job growth is in danger of being hindered by a lack of suitable sites for manufacturing and logistics businesses, according to JLL.
The property consultancy says the balance has tipped too far away from these key sectors, resulting in them being squeezed out of the city, and is calling for a bold approach to future strategic planning.
Simon Peacock, lead director for JLL South West said: “It’s excellent news that Bristol is prepared to look at building upwards and making efficient use of the brownfield land available in the city centre, with major regeneration projects such as the Temple Quarter Enterprise Campus a vital part of the jigsaw.
“Elsewhere in the city, sites no longer suitable for employment use are being developed for much-needed housing.
“However, we must not forget about key jobs creators such as the manufacturing and logistics sectors, which are being squeezed out of the city as a result, with very few options in terms of where to go next.”
Simon Peacock
He said that these businesses are often seeking purpose-built or new space rather than looking to adapt existing second-hand space and will go elsewhere if they can’t find suitable, good quality land.
Peacock added: “Of course, we need to create much-needed housing, hotels for the city’s thriving tourism sector and accommodation for our student population, but it is also crucial that land is allocated for development for employment – where there is the demand – as well as these other uses.”
This comes amid increasing concern about a lack of good quality office space across the city.
Bristol has seen nearly one and a half million square feet of office space converted into residential property since 2013, when the Government relaxed planning laws, representing the highest rate outside of London, according the British Council for Offices South West Chapter.
The council’s chairman, Andrew Heath, says that once office space is lost to residential, it is lost for good and has led to a shortage of commercial space in the city, pushing up rents for businesses.
Plans to redevelop the old generator building near Finzels Reach will create more office space
In the city centre, some Grade B office rents have increased from £12 to £28 per sq ft in the last two years and with the lack of Grade A space or future development, prime rents are now £32.50 per sq ft and due to rise to £35 per sq ft in 2018.
A new report from JLL shows that Bristol has the lowest percentage of available Grade A office space among the ‘big six’ cities, at just 0.4 per cent, compared to 3.1 per cent in Birmingham and 3.6 per cent in Leeds.
The company is hosting its annual South West Property Market Review on Thursday, January 25, at We The Curious from 6pm. They will be sharing key insights and discussing the big issues for the region’s property industry in the year ahead.
Email jllswevents@eu.jll.com for a free ticket to the event.
Read more: ‘Office rents to rise to highest levels ever’
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