Savills : Record level of overseas activity boosted Bristol commercial property investment to £611 million in 2017

Investment into Bristol commercial property reached £611 million in 2017 according to international real estate advisor Savills. These levels are 16% down on the record £723 million invested in 2016 but 8% above the five year annual average of £568 million.

In 2017 investment was predominantly focussed on the office sector, which accounted for £369 million of the total (60%). Retail was the next most popular asset class with £136 million invested (22%). The firm highlights key deals including the acquisition of 10 Canons Way by Korean investors for £95.5 million, One Cathedral Square acquired by BMO for £33.5 million and Tower Wharf acquired by Picton for £26.15 million.

Overseas investment had a record year in the city, accounting for £207 million and 34% of the total, up 255% on the £58 million of overseas capital invested in 2016. This was predominantly driven by the purchase of 10 Canons Way.

Paddy Hales, head of Savills Bristol, comments: '2017 was a particularly strong year for investment into Bristol. The city remains a destination of choice for domestic investors and increasingly so by overseas investors. The latter are feeling confident about the location and are identifying value outside of London. Bristol's office market remains attractive for investors due to the sustained high level of occupational demand and acute shortage of supply, which has resulted in strong rental growth prospects to date and going forward.'