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.”

Cooke & Arkwright have been providing rating valuation advice to The Welsh Rugby Union Limited (“WRU”) and Millennium Stadium plc for many years. They were recently successful in achieving substantial reductions in the assessments of the Millennium Stadium, covering both the 2005 and 2010 rating list. These negotiated reductions yielded savings of c.£3.5m which, crucially, allows the WRU to re-invest in rugby throughout Wales. They advise the WRU across the group portfolio including the National Centre of Excellence in the Vale of Glamorgan. The valuation issues across the WRU portfolio are complex requiring a high level of understanding of the funding and finances of professional sport in Wales. Cooke & Arkwright’s experience and understanding of these issues and application to the rating valuation have yielded these substantial negotiated reductions. The WRU and the Millennium Stadium entrust our work to organisations with the required levels in experience and expertise in dealing with these complex issues. I am glad to say we have this expertise in Wales. I would have no hesitation in recommending ratepayers making use of this Welsh based expertise.

The Welsh Rugby Union Limited, Welsh Rugby Union Group