In contrast to reports coming from many areas of the UK, total office take-up in Cardiff was disappointing last year. The final figures were down by 20 per cent compared with 2012 according to DTZ Associate Director Chris Terry.
Reporting for WalesOnline Mr Terry said that activity in 2013 focused mainly on the city centre and that there was reduced interest in out-of-town properties. A total of 104 transactions were completed in the Cardiff office market and only 25 of them were for addresses located out of town.
Most of the transactions (85 per cent) were for properties measuring less than 5,000 sq ft and there were only four transactions involving properties measuring more than 10,000 square feet.
This trend is forecast to continue in 2014 with office demand expected to be driven by occupiers looking for space measuring between 2,000 and 5,000 sq ft.
Nevertheless two notable deals that will be completed in the first quarter of this year are one for 48,500 sq ft at Cardiff Gate and another for 38,500 sq ft at Companies House.
Companies seeking to relocate by the end of 2014 or the middle of 2015 will find it challenging to find suitable office space when there is limited stock available. With Grade A stock currently at an all-time low, the number of recent lettings in the city is continuing to diminish with only 27,000 sq ft in Cardiff city centre.
However, office supply will increase over the next 18 months with around 300,000 sq ft of new office development in the pipeline.
Projects due for completion include One Central Square (140,000 sq ft) and Capital Quarter 2 (80,000 sq ft). A building at the Welsh Government’s Callaghan Square site measuring 90,000 sq ft may also be completed.
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