Cardiff Q1 report findings
The state of the Cardiff office market at Quarter 1
What is the position of the Cardiff office market at the end of Quarter 1 and how does this affect the climate for those considering an office relocation to Cardiff? By the end of Q1, commercial property take-up was down to 32,000 sq ft but this was primarily due to a number of large transactions in Q4. Availability of space remained static from the previous Quarter and deals below 5,000 sq ft were expected to be the norm.
Public sector offices account for 20 per cent of the office space in Cardiff. In terms of interest from investors, which is crucial to restoring financial prosperity following the recession, Cardiff is experiencing a slowing down of investment activity but it is looking positive for the near future. Prime office yields are at an approximate state of 50 bps to 6.5 percent.
In terms of location, out of town offices are still under pressure to get tenants in. Development plans for the city centre have stalled mainly on account of the prevailing market rent of £21 per sq ft which makes speculative office developments an unattractive proposition at present. Prime headline rents for Cardiff are expected to remain stable throughout the remainder of 2010 and into 2011. The Driscoll scheme on the outskirts of the city is due for completion at the end of this year which will provide a further 30,000 sq ft of office space.
Your Cardiff Commercial Property Agent will give your further advice for those moving office to the City.
