Office demand in Cardiff remained “subdued” in the second quarter, the latest report from property giant Avison Young shows.
The firm’s on the Ƶ’s office activity showed take-up in the Welsh capital in Q2 totalled 39,800 sq ft – down 53% on the first quarter and 67% below the 10-year quarterly average.
Across the nine Ƶ cities in the report – also including Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle – overall take-up fell 25% on Q1, to 1.6m sq ft.
In Cardiff, the professional services sector made up 42% of total demand. The largest deal of the quarter saw engineering consultancy Stantec let 9,400 sq ft at One Central Square.
Office vacancy rose to 9.4%, which Avison Young said was a “record high for the market”. It said the change was driven by increasing vacancies in secondary office space, with Grade A vacancy unchanged at 0.3% for the third consecutive quarter. The report adds: “No space is currently under construction across the market”.
It added: “While rental growth is expected in the second half of 2025, office prime rents remain at £28.00 per sq ft. Rent frees remain at 18 months on a 10 year lease.”
Other key deals included Gleeds’ deal for 4,917 sq ft of space at Hodge House in St Mary Street.
Across the Ƶ, Avision Young said the Big Nine office markets saw the strongest H1 take-up since 2019. Cities “significantly outperforming” the 10-year first half average included Bristol (21%), Manchester (27%) and Newcastle (37%).
Paul Broad, principal and managing director, national offices at Avison Young, said: “The first half of the year has been transformational for the Big Nine office markets. The strength of activity reflects the levels of pent-up demand from occupiers. We’re really starting to see out-of-town markets, where larger, flexible floorplates are available, benefit from city centre supply constraints.
“Whilst overall activity decreased slightly in Q2, the year so far gives us confidence that demand will remain high for future-proofed, sustainable buildings that support evolving workforce needs.”
