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Cardiff office market records highest H1 take-up since 2016

Capital Quarter in Cardiff

Office take-up in Cardiff reached 214,708 sq ft, the highest half year take-up since 2016, and 133.6% above H1 2021, according to international real estate advisor Savills.

The most prominent deals this year included the 65,000 sq. ft. letting to BT at 3 Capital Quarter, the largest letting in Q1, and Roku taking 25,845 sq. ft. at One Fusion Point in Q2. The city centre accounted for 90% of take up in the first half of the year.

Availability is, however, at the highest level for over 20 years at 1.65m sq. ft., although this is anticipated to reduce by the end of the year as there are a number of active requirements from companies which are expected to progress.

Gary Carver, director in the office agency team at Savills Cardiff, says: “We’ve experienced excellent momentum in the first half of this year as occupiers are looking to provide the best workplace environment for their employees. Hybrid working has led to a lot of businesses focusing more on amenity and thinking more creatively about the design of their workspace to attract employees back to the office and perform effectively.”

“We are seeing an increase in demand from companies seeking modern space on flexible leases, with good levels of demand reported by serviced offices providers such as Regus, Chadwick Business Centres and Clockwise. Incubator hubs, such as Tramshed, are also proving popular with start ups.”

According to Savills, the number of start-ups in Wales has risen from 372 in January 2022 to 2,116 in March 2022 – an increase of 469%, which is the biggest percentage change in any region or nation across the UK. Wales also had the second highest rise in newly established companies between December 2021 and March 2022, with an increase of 385%.

Clare Bailey, commercial research director at Savills, says: “Venture Capital investment in Cardiff totalled £144 million in 87 deals from January 2022 to June 2022 and so it is no surprise that Cardiff has one of the fastest-growing digital clusters. With Cardiff University’s £300 million innovation campus and organisations such as Cardiff Start which connects entrepreneurs with business partnerships and investment, Cardiff is set to remain an extremely attractive base for many exciting start ups.”