New figures show 61% year-on-year rise in Cardiff office lettings

Despite Brexit, the Cardiff office market shows little sign of slowing down

12 October 2016

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Office space lettings in Cardiff for 2016 are up 61% on the same time last year, according to new figures released by property agents Cooke & Arkwright. According to the data, gathered as part of the Cardiff Commercial Property Forum take-up statistics, total floor space leased in the city in 2016 to the end of Q3 is 485,456 sq ft, compared with 300,902 sq ft for the same period last year.

In Q3 of 2016 alone, total space leased was 187,775 sq ft, compared with 81,253 sq ft for the same quarter in 2015 – an increase of 131%.

The year-on-year increase for Q3 was largest for city centre lettings. In Q3 of 2015 29,925 sq ft was leased, compared with 107,647 sq ft for the same quarter in 2016.

Existing Grade B office stock accounted for 48% of the take-up this quarter.  

Commenting on the figures, Tim Lawley, an associate at Cooke & Arkwright specialising in office and industrial deals, said: “The performance in 2016 to date is outstripping 2015, which itself was a very strong year. In addition to this, there are still some major potential deals in the pipeline for the final quarter, so we would hope to exceed last year’s total when the figures are collated for 2016 in its entirety.

“The lettings to Motonovo – which we acted to secure - and Julian Hodge at Central Square maintain the high turnover on the site, but it is pleasing to see a strong showing in the existing Grade B stock, which accounted for 48% of the take up this quarter.

“Despite Brexit, the Cardiff office market continues to perform strongly, showing little sign of slowing down.”

The disposal of 120,000 square feet on the Heads of the Valleys Industrial Estate was a particularly satisfying task. The building had been rebuilt following fire damage, and Jeremy Symons and his team were successful in identifying a nearby purchaser looking to expand. The sale price, at £4,000,000, represented a record sale price for a property of this nature in the area, and with great tenacity and endeavour was completed in a timely fashion. An excellent result.

Richard Hayward, Richard Hayward Properties