November 21, 2014
Accountancy giant KPMG is poised to take new office space in Bristol, in a major fillip for the South West office market.
Property Week understands the firm has put 45,000 sq ft under offer at Skanska’s speculatively-built 66 Queen Square, which is due to be completed next May.
The deal comes hot-on-the-heels of rival PWC’s prelet at Salmon Harvester’s Two Glass Wharf in October, which set a record rent for Bristol of £28/sq ft.
KPMG is not expected to top the PWC price and will pay a similar rent for the space at the five-storey, Queen Square building. The deal is expected to be signed before Christmas.
The Bristol office market has roared back into life in recent months, after a slow few years since the beginning of the recession.
Knight Frank said it expected take-up to break 1m sq ft by the end of the year, which would be the highest figure for greater Bristol since 2007.
Once complete, the deals with KPMG and PWC will boost grade-A occupation significantly in the city, adding to the 7,415 sq ft deal with customer experience company CX Partners earlier this year at 2 College Square.
KPMG is moving from its offices at 100 Temple Street after they were bought by Bristol City Council last year for its own use.
The move into the 58,416 sq ft 66 Queen Square will exacerbate the shortage of grade-A space available in the city centre, with only a few buildings left to compete for sizeable lettings.
There remains around 63,000 sq ft in Two Glass Wharf, following PWC’s deal, as well as space in Benson Elliott’s
Templeback and Palmer Capital’s Bridgewater House.
Elsewhere in Bristol, French energy firm DNV has recently completed a deal to take 26,000 sq ft across ground, second and third floors at 1 Linear Park.
Rents in the building, which is in the central Temple Quay area, are being quoted at £24.50/sq ft. The building is in receivership following the collapse of Castlemore Securities and is now under the control of administrator PWC.
DNV is consolidating staff from St Vincent’s Works and Kingsland House elsewhere in Bristol following a takeover of local firm Garrad Hassan at the end of last year.
JLL advised KPMG. JLL and Alder King are letting agents on 66 Queen Square. Alder King and Lambert Smith Hampton are letting agents on 1 Linear Park. Colliers International advised DNV.
All parties declined to comment.
Author: Hannah Brenton, Property Week