Spotlight: Cardiff Offices – Winter 2018

Take-up in 2017 was the highest on record, which highlights the continued levels of good occupier demand in the market

■ The Cardiff office market experienced a buoyant 2017 for transactional activity in both the occupational and investment market. Take-up in 2017 reached 703,926 sq ft which was the highest recorded annual take-up for the Cardiff market. This has been primarily driven by the Government Property Unit (GPU) who leased 269,228 sq ft at Central Square, which was the largest office leasing transaction signed in the history of Wales.

■ Supply has continued to fall in the market after strong levels of take-up, and is at its lowest level currently since 2007. Supply constraints in the market are set to continue in 2018 as there is a limited amount of space being speculatively developed.

■ Prime rents have remained at £25 per sq ft and we don’t expect a rise in 2018 due to the lack of new Grade A space available in the market.

■ The investment market also experienced a record year of activity with investment volumes reaching £305m in 2017. This has been caused by large lot size sales at Central Square. Prime yields have fallen to 5.5% which highlights investor interest in the Cardiff market.

2 Kingsway, Cardiff

▲ Ardstone's 2 Kingsway, above, currently provides 31,000 sq ft of comprehensively refurbished Grade A office space. Savills have recently moved into the building.

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