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Cardiff office market continues to exceed five-year average

Capital Quarter

According to Savills, office take-up in Cardiff reached 70,000 sq ft in Q2 2023, 29% above the five-year Q2 average, and 150,000 sq ft in H1 2023, which is in line with the five-year H1 average.

There were 53 completed transactions in H1 2023 which was 26% above the long-term H1 average, the second largest number of completed H1 deals in the last 10 years.

The TMT sector was the most active sector in Cardiff during the first half of the year, accounting for 22% of overall take-up. This included the 19,000 sq ft Grade A letting to Veezu at Hodge House, the largest letting in H1. The professional sector followed with take up reaching 18,500 sq ft accounting for 12% of total take-up.

While there was no change in the prime rent in Cardiff in H1 2023, Savills expects this to significantly increase from £25 per sq ft to around £30 per sq ft in the second half of 2023, representing an impressive growth rate for the region.

Gary Carver, Director in the Office Agency team at Savills Cardiff, says: “Whilst we are still witnessing the impacts of the change in working patterns post pandemic, with many companies switching to hybrid working, there are still encouraging levels of demand for offices from a range of sectors, particularly for good quality office space and we expect this to continue as companies seek a flight to quality to promote best working practices and encourage staff into to the office.”