Strong start to 2016 for Cardiff office market

Q1 up 28% year on year

19 April 2016

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Cardiff office market saw a strong start to 2016 with total floor space leased in the first quarter up 28% year on year. Grade B accommodation provided the majority of floor space taken with just over 69,500 sq ft let, well over half of which was in the city centre, while Grade A accounted for more than 24,000 sq ft. Tim Lawley, Associate with Cooke & Arkwright’s Business Space team comments, “2015 finished on a high note and the first quarter of this year has also been busy. City centre refurbished stock has been performing well, and we have seen a return of out of town demand.

“We are continuing to see high demand for city centre stock of all types. It’s possible that we could end the year with little available space left in several large landmark buildings, which will further reduce city centre space as a sizeable chunk of the market is being converted into student housing. Significant pre-lets at the new offices coming online at Central Square over the next 18 months are maintaining pressure on long term availability as well, which is contributing to upward pressure on rents.”

Grade / Location A B C TOTAL YEAR TO DATE YEAR ON YEAR

Office Space Per Sq Ft Leased Q1 2016

Cardiff Bay011,093011,09311,093 
City Centre24,03937,0112,16363,21363,213 
Out of Town021,493021,49321,493 
       
TOTAL24,03969,5972,16395,79995,799+28%

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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.

Steve Phillips, Group Finance Director, Welsh Rugby Union Group