Despite the continued economic uncertainty due to the conflicts in Ukraine and the Middle East and the rise of inflation and interest rates, for the rest of 2026, the narrative becomes more optimistic with pre-budget uncertainty now behind us and a backdrop of modest GDP growth provides a platform for recovery.
Take up in the Bristol city centre and out of town markets exceeded the 5 and 10 year averages for the period.
The city centre saw 22 completed transaction in Q1 2026, with total take up reaching 160,364 sq ft, equating to a 58% increase on the same period last year. This first quarter has also seen several larger transactions complete, with four deals over 10,000 sq ft in the city centre. The largest was the letting of 68,504 sq ft at One George’s Square to a confidential occupier. This was followed by Epic expanding into a further 13,298 sq ft at Hartwell House, Tekever taking 12,549 sq ft of sublease space within Assembly A, and PKF Francis Clark committing to pre‑let 12,960 sq ft of refurbished space at 90 Victoria Street. The city centre also achieved a new headline rent of £52.00 per sq ft!
The out‑of‑town market has also made a strong start to the year, with 12 deals completing and quarterly take‑up totalling 68,023 sq ft. This mirrors Q1 2025 and follows a similar pattern, with one major letting — 68,023 sq ft at Lake View to Diligenta — supported by a series of smaller transactions. A new headline rent of £27.00 psf for the out of town office market was achieved at Aztec West. Further rental growth is expected in both markets during the first half of 2026.
Low levels of development are supporting further rental growth but focus on sustainability, efficiency and long-term occupational demand will be critical. The next 2-3 years there will continue to be highly restricted speculative development, reinforcing the importance of pre-lets and refurbishment-led solutions. APAM’s comprehensive back‑to‑frame refurbishment of One Friary is progressing well and is due to complete this summer, delivering 60,000 sq ft of effectively new space. Meanwhile, BlackRock’s Portwall Place is now on site and will provide around 160,000 sq ft of new accommodation in 2027. Kinrise’s Canon’s Wharf has also recently secured planning consent for 165,000 sq ft of offices, with completion similarly targeted for 2027. Furthermore the demolition works to clear the site for One Passage Street are well underway and due to complete before summer.
Environmental, Social and Governance (ESG) standards are no longer a “nice to have” — they are now central to both investment decisions and occupational strategies. Buildings with strong ESG credentials consistently demonstrate lower void risk, higher rental performance and greater investor interest.
What occupiers and investors are prioritising:
Energy performance: EPC ratings, BREEAM targets and overall efficiency
Operational sustainability: Intelligent metering, building control systems and carbon-reduction measures
Health & wellbeing: High quality air circulation, good daylight levels and biophilic design
The role of the office has evolved. For many organisations, the workplace is now an experience — a space that supports culture, learning and collaboration. Amenities are becoming almost as influential as ESG in shaping workplace strategies.
Occupiers are increasingly seeking:
Spaces that reinforce company culture, collaboration and talent development.
On site amenities including cafés, communal areas, meeting hubs, wellness rooms, secure cycle storage and high quality showers and gyms.
Location advantages such as proximity to city centre leisure, lunchtime food options and public transport links
Amenity rich, well located buildings with strong ESG credentials continue to outperform the wider market.
Two key themes are reshaping demand:
Flight to quality – occupiers are prioritising the best space, not the most space
Right-sizing – decisions are driven by cultural fit, productivity and efficiency, rather than simple downsizing
Landlords who invest strategically in quality, amenities and ESG will be best placed to capture rental premiums, while occupiers who plan proactively will gain advantages in productivity, engagement and recruitment.
Burston Cook remains the most active office agency in Bristol, completing more transactions each year over the last decade than any of our competitors. As we enter 2026, our expanded agency team is well positioned to continue delivering exceptional results and market-leading insight for our clients.
Throughout 2025 and into the first quarter of 2026, Burston Cook has remained the most active retail and leisure agent across Bristol city centre, Clifton, and other key locations within the city.
The Bristol retail and leisure market has shown resilience, with continued strong demand from independent operators and start-up businesses. Despite ongoing cost pressures, occupier activity has remained robust, and Bristol continues to strengthen its reputation as a leading food and beverage destination, supported by a diverse mix of new and established operators.
Popular retail pitches such as Park Street, Whiteladies Road, Gloucester Road, and Southville continue to attract good demand, particularly from independent businesses, with Burston Cook advising on a large proportion of transactions in these key areas. Demand remains particularly strong for smaller retail units (<£25k p.a.), with lower business rates helping to keep occupier costs manageable.
2025 and 2026 has also seen the opening of big brands including Lego, Look Fantastic, Joe & The Juice, Odeon and Marks and Spencer’s at Cabot Circus, a positive shift, bringing more footfall into the centre following the closure of House of Fraser and Debenhams. Reiss are moving from the development at Quakers Friars and Broadmead into Cabot Circus.
Cribbs Causeway has seen openings including Honest Burgers, All Saints and upcoming is the addition of MINISO, plus Loungers are due to take over the former Pizza Hut.
Park Street and Queens Road have benefitted from the likes of national Black Sheep Coffee, Taco Bell and Wingstop joining the stretch and there are further national operators upcoming in 2026 to include The Gym Group, McDonalds and Blank Street Coffee.
Out-of-town retail remains buoyant, with The Mall at Cribbs Causeway reported to be almost fully occupied, reflecting its continued appeal to national retailers.
Headline rental levels have remained broadly stable. Zone A rents in prime locations such as Cabot Circus are around £200 per sq ft, compared with approximately £90 per sq ft in Broadmead and £150 per sq ft at Cribbs Causeway.
The April 2026 business rates revaluation is expected to have a significant impact on the retail sector, with many businesses moving above the Small Business Rates Relief threshold and losing access to the relief. The new business rates multipliers for 2026–27, however, will partially offset this through a reduced multiplier for the Retail, Hospitality, and Leisure sector.
Overall, 2025 was an encouraging year for retail in Bristol. Whilst there are clearly challenges ahead in 2026 given the additional economic uncertainty created by the conflict in Iran and wider Middle East region, Burston Cook look forward to continuing to make a positive impact on the retail and leisure market throughout the remainder of 2026 and into 2027 as Bristol’s most active agent.
2025 proved to be a record year for the Industrial market in the bristol area with the Industrial Agents Society take up figures showing 4,524,381sq ft of space transacting in 182 deals. This beat the previous record take up of 4.3m sq ft in 2016. This took quite a bit of stock out of the market and the limited supply across most sectors of the Bristol market has meant take up is being restricted in 2026. Supply of immediately available stock is a continuing concern with higher build costs and softening investment yields making the delivery of speculatively built space very difficult for developers as rent growth and capital values have levelled off.
The current economic uncertainty and rising costs caused by geopolitical events is a key issue for businesses at the moment, but it has had the knock on effect of creating an increased demand for occupier purchase opportunities. The take up figures for the first quarter of 2026 reflect the hardening market trend with total take up at 104,673 sq ft so far, but demand seems to be holding up with good enquiry levels and deals being agreed.
With a combination of changing global economic conditions, regulatory reform and new entrants to the market providing a wider range of vehicle models, there has been a slightly more positive outlook for the automotive sector. Consolidation and multi-franchise sites remain a trend which allows for repurposing of surplus properties to the likes of self-storage, supermarkets, care homes etc. Ford announced at the start of 2025 that it has terminated 50 more dealerships, meeting its target under plans announced in 2020 to cut its dealerships by nearly half. Transformation from engine to electric continues to define the industry and EVs are becoming more affordable aided by new entrants to the market such as BYD and OMODA. These brands are taking up vacant dealership space and helping to boost the appetite in the dealership investment market.
The accident repair market, in which Burston Cook is active nationally, has been growing over the years driven by several factors including increased traffic density, rising repair cost, higher used car values and a rise in the average driving age. There has been a plethora of M & A activity in the sector over the last couple of years and ARC’s are having to invest in expanding their EV repair capability and keeping up with changing technology and systems in the automotive industry as well as demonstrating their commitment to sustainability.
Our latest quarterly overview of the Bristol commercial market.
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