Total office take‑up during the first quarter reached 49,647 sq ft across 24 deals, reflecting a slight rise in deal volume compared to recent quarters, albeit with relatively modest average transaction sizes.
The city centre dominated activity, accounting for 39,020 sq ft, around 80% of total take‑up. Out‑of‑town locations contributed 9,877 sq ft, while the Cardiff Bay market saw a single transaction totalling 750 sq ft.
During quarter one, the average deal size stood at 2,168 sq ft, with only two deals recorded over 5,000 sq.ft. Deals under 2,000 sq ft accounted for the highest number of transactions, signalling sustained demand from SMEs, professional services firms and specialist occupiers.
Notable city‑centre transactions included an 8,844 sq ft letting at Five Callaghan Square and a 6,213 sq ft lease at Coal House, which demonstrates continued occupier interest for well specified Grade A buildings.
Out‑of‑town activity was more limited but included the 4,313 sq ft freehold purchase at Melyn Mair Business Centre in Rumney.
Leasing remained the predominant tenure, accounting for the majority of deals completed. Only a small number of freehold transactions were recorded, reflecting occupiers’ ongoing focus on flexibility amid broader economic uncertainty and evolving workplace strategies.
Ben Bolton, Director at Cooke & Arkwright, said, “While take‑up in quarter one remains below long‑term and pre‑pandemic averages overall, activity levels and a higher number of deals highlight the resilience of a pragmatic office market, with improving occupier confidence. Businesses continue to prioritise flexibility and quality over scale, which is reflected in the strength of smaller transactions and the continued outperformance of Grade A and recently refurbished city‑centre offices. With prime supply remaining limited, well‑specified space in Cardiff’s core business districts is likely to see sustained demand through 2026.”
With limited availability of prime space and ongoing demand for high specification energy‑efficient buildings, competition for the best offices in Cardiff is expected to remain strong as the year progresses.
