Top rents in Cardiff predicted to rise 4% by the end of next year

31 July 2017

Companies looking for smaller, less traditional and more creative space are driving the Cardiff office market with top rents expected to increase by 4% by the end of 2019, according to Savills. Rents for Grade A space currently stand at £25 per sq ft (£269 per sq m).

Take up of office space in Cardiff hit 210,000 sq ft (19,509 sq m) in the first half of the year, as the city continues to attracts creative firms looking for smaller, quirky space with features such as exposed services and city centre locations. According to Savills, TMT (technology, media and telecommunications) firms were the most active sector when looking for space under 10,000 sq ft (929 sq m), accounting for 24,000 sq ft (2,230 sq m) of total take up in H1 2017.

The firm notes that HMRC is set to sign on a pre let for 270,000 sq ft (25,084 sq m) in Central Square which will boost take up going into the second half of the year. Savills predicts full year take up levels are set to be in line with 2016 figures at 660,000 sq ft (61,316 sq m).

Gary Carver, director in the business space team at Savills Cardiff, comments: “The Cardiff office market has seen a slowing down in take up of space over 10,000 sq ft in the first half of the year. Instead we have seen smaller firms increasing their activity, ensuring rents remain stable, however as new build stock begins to hit the market we expect rents to rise steadily to £26 by the end of 2019.”

 
 

Key Contacts

Gary Carver

Gary Carver

Director
Office Agency

Savills Cardiff

+44 (0) 2920 368 963

 

Mike Barnes

Mike Barnes

Research Analyst
Commercial Research

Savills Margaret Street

+44(0) 203 107 5459