Yield Range
4.8-5.25%
Vacancy Rate
8.4%
Active Deals
1
Outlook
Positive
Bristol's commercial property market remains one of the strongest performing regional UK markets, with healthy occupational demand across both office and industrial sectors. Office vacancy is 8.4% in Q4 2025, and prime office rent has held at £50 per SF - demonstrating landlord pricing power on quality space. Industrial vacancy across the South West is 5.9%, with prime rents at £10.50 per SF and a 5.25% yield. LondonMetric's £74 million acquisition of a 390,000 SF Marks and Spencer pre-let logistics warehouse in Avonmouth underlines sustained institutional appetite for the Bristol and South West logistics market.
Yields & Returns
Vacancy & Supply
Vacancy Rates
Office vacancy in Bristol was 8.4% in Q4 2025 per Cushman and Wakefield. South West industrial vacancy was 5.9% in Q4 2025 per Knight Frank.
Supply Pipeline
Office: approximately 125,000 SF under construction in Bristol including 1 George's Square and One Friary (both targeted H1 2026). A 123,000 SF office building has received planning approval per Insider Media. Industrial: more than 2 million SF of speculative industrial space is under construction across the South West, including schemes at Avonmouth. LondonMetric's 390,000 SF M&S logistics warehouse at Axis Works, Avonmouth is due for practical completion in summer 2026.
Competitor Activity
LondonMetric Property acquired a 390,000 SF BREEAM Excellent logistics warehouse at Axis Works, Avonmouth, Bristol from Epta Development and Stoford Developments for £74 million. The facility is pre-let to Marks and Spencer on a 20-year lease with chilled, ambient, and frozen handling capabilities to support M&S food logistics. Leftfield also acquired the Waitrose Avonmouth distribution centre (361,000 SF) for £56 million at a 5.5% yield in Q4 2025. Office occupational activity included Burges Salmon taking 41,000 SF at One Glass Wharf and Hargreaves Lansdown pre-letting 90,000 SF at the Welcome Building.
| Firm | Activity | Asset | Detail | Value |
|---|---|---|---|---|
| LondonMetric Property / Epta Development / Stoford Developments | Acquisition (Forward-Funded Development) | Industrial (Logistics) | LondonMetric acquired a 390,000 SF BREEAM Excellent logistics warehouse at Axis Works, Avonmouth pre-let to Marks and Spencer on a 20-year lease. Asset has chilled, ambient, and frozen handling capabilities. Practical completion expected summer 2026. | £74M |
Demand Drivers
Rental Market
Employment & Economy
Migration & Demographics
Transport & Connectivity
Key Risks
Office supply pipeline of 125,000 SF under construction could put modest pressure on vacancy if pre-letting demand does not keep pace. A speculative industrial pipeline of more than 2 million SF in the South West could ease the supply-demand imbalance over the medium term and temper rental growth. National macroeconomic uncertainty - including the impact of UK fiscal policy and potential interest rate changes - affects occupier confidence and investment pricing. The Leftfield Waitrose transaction at a 5.5% yield and the LondonMetric M&S deal at implied tight yields suggest further yield compression is limited without rental growth.
Outlook 12–24 Months
Bristol's 12 to 24 month outlook is positive, supported by tight vacancy across both office and industrial, healthy demand from diverse occupier sectors, and institutional conviction evidenced by the LondonMetric and Leftfield acquisitions. Industrial rents are forecast to grow 4.1% in 2026, making the logistics sector particularly attractive for income-focused investors. The office market is well-positioned with limited new supply and strong demand from financial services and professional firms. The M4/M5 logistics corridor will continue to attract food retail and general distribution demand. A competitive speculative industrial pipeline represents the primary supply-side risk, though the depth of demand for modern BREEAM-rated logistics space is expected to absorb new stock relatively quickly.
Sources