According to new data from Savills, Cardiff office take-up in Q3 2024 has reached 146,000 sq ft, representing a 122% increase on Q3 2023, an 84% increase on the five year average and an 11% increase on the 10 year average.
Savills reveals that the most active sector during the quarter was the professional services sector, representing 25% of total office take-up in Cardiff. Notably, the most active sector for the year so far was the public services sector (education and health) accounting for 30% of total take-up, highlighting the city’s appeal to a diverse range of occupiers.
The international real estate advisor notes that the increased office take-up in Cardiff, and the professional services activity, can be attributed in part to the transformative growth around Cardiff Central Station, with Central Square being an example. The research notes that Central Square has become a catalyst for the expansion of the professional services sectors in Cardiff, with significant deals attracting major corporations to the area. This is exemplified by the 33,000 sq ft letting at 1 Central Square to PWC, recorded as the largest deal of the quarter.
Savills research shows that office rents in Cardiff have risen for the first time in nine years, to £28 psf, up from £25 psf which had been achieved nearly 10 years ago. This supports Savills growth forecast in July, representing a 12% increase.
Gary Carver, Director in the Office Agency team at Savills Cardiff, says: “The significnt increase in Cardiff’s office take-up, particularly in the offices located around Central Station, underpins the demand for quality office space in prime locations. The availability of previously let space in One and Two Central Square has created the opportunity for companies seeking Grade A offices in the city to take the best space in the city and therefore assisted in the upturn in take up. We forecast that take up for 2024 will exceed 500,000 sq. ft. for the first time since 2017.”
