The number of businesses needing new offices in Bath has dramatically increased in the last 12 months.
According to the latest Carter Jonas research report on commercial property in the city, there was a 39 per cent increase in the amount of office space taken last year, compared to 2011.
The two biggest relocations for the year were Bath solicitors Withy King to Midland Bridge House and high-tech engineers Altran to St Lawrence Court, SouthGate.
Commercial partner and head of Carter Jonas in Bath, Philip Marshall, said the increase showed Bath's resilience to the recession.
"Encouragingly, letting activity has increased for three years in a row and with market sentiment continuing to improve during 2013, take-up is expected to marginally exceed its 2012 level by the end of the year."
However, with increasing demand, Mr Marshall claims Bath needs to act to now to keep up the supply of suitable office space.
An area identified for future growth is the creative and information and communications technology sector.
The sector is currently the fourth largest in Bath contributing around £220 million to the local economy, and employing 6,700 people.
The sector is forecast to see a 20 per cent increase by 2026.
Mr Marshall said: "The provision of suitable office accommodation should be considered as a matter of urgency.
"It's essential to ensure sufficient capacity is provided for the expansion of Bath and north east Somerset to create a viable and successful office market capable of driving forward an integral part of the local economy.
"At present the quality of the office stock in Bath is very poor."
