Cardiff city centre may find itself without any available Grade A office space by the end of 2013, a report released by Alder King has claimed.
As Wales Online reports, the organisation's market monitor has revealed that if demand continues on its current upward trajectory then the Welsh capital could see its office stock dramatically reduced over the course of the year.
According to Owen Young, partner at Alder King's Cardiff office, this would increase the potential for new developments and make fresh initiatives more viable.
"Whilst there has been very limited speculative development across [south Wales] over the last three years, the market in a number of locations is reaching the point where viability is improving," he explained.
Yet despite the promising signs, Mr Young also commented that this will not necessarily lead to a strong appetite for building new space given the extent of the costs that can be involved.
"Investor demand is predicted to rise as high returns and low capital values will appear increasingly attractive when compared to build costs," he added.
The report outlines that Grade A stock in Cardiff is in extremely short supply, with an estimated 120,000 square foot currently available in the city centre and Bay areas.
And if demand does continue to intensify, the chance that this will be taken up by the end of the year appears to be particularly high given the current trends in the city.
While Cardiff may not be traditionally considered as one of the most burgeoning commercial property markets in the UK, the shortage of office space indicates that it is becoming increasingly popular as investors pick up its Grade A stock.
If the report's forecast becomes a reality, new developments will be required to meet demand if the city is to take advantage of its potential to enjoy the economic benefits that increased market activity can bring, but much is likely to depend on investors and the viability of fresh projects.