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It may takes time but I am happy to wait for. The commercial property market is one of those areas set to feel the uplift as the size of the investment brings new companies into the area. Those considering investing off the back of Hinkley will get additional encouragement from the longer-term prospect of a new reactor in South Gloucestershire at Oldbury, in a Hitachi-led project. EDF itself is believed to be looking for a new regional base, and being linked to every major office development from Devon to Gloucestershire.
But other firms will come too. EDF and many of their suppliers have significant requirements for office space in the region as a result of this project.
The combination of big infrastructure investment — the electrification of the rail line from Bristol to London cutting 20 minutes off journeys to the capital is another — with the improving economy adds up to a positive year in the office market. Deals are starting to happen in a number of sectors. For example, the newly re-established bank TSB is moving out of the city centre to larger premises at Keypoint in the Almondsbury Business Park outside Bristol and Broadcom signing a year lease on 25, sq ft at nearby Aztec West.
In short to medium term, the thing that holds the market back could be supply. Its letting in turn means the supply of good quality office space in North Bristol is depleted and companies looking to move in the short term will have a limited stock to consider.
Steve Lane, senior surveyor at JLL, agrees. He said he expected Bristol to see the highest amount of take-up in square footage in since , but is concerned about supply for Thirty-nine transactions over 1, sq ft — of which six were more than 10, sq ft — took place in the first half of This was double the figure for the same period in The challenge now will be a lack of stock to meet the increased demand, particularly given the fact that there are currently no out-of-town schemes under construction in Bristol.
Out-of-town demand will be key further up the M5 too. Adrian Rowley, a partner in the Gloucester office at property consultants Alder King, said: Demand has increased over the past three years with around , square feet of known requirements active in the market.
Another area driving the West market forward is logistics and distribution. Recent developments include the , sq ft cold store being built for retail food chain Farmfoods in Severnside, near Bristol.
The latest Bristol take-up figures for industrial property suggest a strong first half of the year, with rental growth also predicted for the next six months.