Demand for Grade A office space in Cardiff is on the rise, according to a new report by DTZ.
In total, 77 per cent of all office transactions achieved so far this year have been in the city centre, reflecting 103,734 sq ft of the 135,188 sq ft of all deals. Examples of large deals in the centre include lettings to Innovelgal (12,767 sq ft), Zurich (8,200 sq ft) and Hugh James (19,500 sq ft). In comparison, outside of the centre only saw ten deals, or 16,000 sq ft, being completed.
Supplies are dwindlng, meaning that the average rent of £22 per sq ft is likely to rise over the next six to 12 months.
Only 45,000 sq ft of office space was taken up in the first quarter of the year, down from the 110,000 sq ft recorded within the same period in 2012. However, the second quarter of the year that saw signs of positivity, with 84,216 sq ft of space disappearing from the market.
These statistics come after business Minister Edwina Hart and the enterprise zone board have tried to push new office stock to the city over the next few years. There are a series of speculative developments in the pipeline, including the 35,000 sq ft Vision Court at Pentwyn, 40,000 sq ft of new creative space at Porth Teigr, and developer Rightacres purchasing One Central Square to develop a BREEAM grade A office building.