The take up of office space in Cardiff surged in the third quarter of this year, shows new research from property advisory firm Savills. Total take up from July to September was 146,000 sq ft, representing a 122% year-on-year rise.
The level was also an 84% increase on the five year average and 11% up on the 10 year average. For the full year Savills is forecasting office letting deals in the city to exceed 500,000 sq ft for the first time since 2017.
The most active sector during Q3 was the professional services sector, representing 25% of total deals in the capital. For the year so far the public services sector (education and health) has been the most active, accounting for 30% of total take-up.
The biggest deal in Q3 involved professional advisory firm PwC, with 33,000 sq ft at the 1 Central Square office scheme close to Cardiff Central Station for its new Welsh HQ. The letting also took the headline rent for the city to £28 per sq ft, up from the £25 per sq ft level where it had been for a decade.
Gary Carver, director in the office agency team at Savills Cardiff, said: “The significant increase in Cardiff’s office take-up, particularly in the offices located around Central Station, underpins the demand for quality office space in prime locations.
"The availability of previously let space in One and Two Central Square has created the opportunity for companies seeking grade A offices in the city to take the best space in the city and therefore assisted in the upturn in take up. We forecast that take up for 2024 will exceed 500,000 sq ft for the first time since 2017.”
