Take-up of office space in Cardiff has hit its highest level since 2016, according to new research from property advisory firm Savills. In the first half(H1) of this year letting deals in the city totalled 214,708 sq ft, the highest half year take-up since 2016. The take up was 133.6% above H1 of 2021.
The most prominent deals so far this year include the 65,000 sq ft letting to BT at 3 Capital Quarter, the largest letting in the first quarter of the year (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.
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Availability is, however, at the highest level for more than 20 years at 1 65 million sq ft - although this is anticipated to reduce by the end of the year with a number of active requirements from companies which are expected to progress.
Gary Carver, director in the office agency team at Savills, Cardiff, said: “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 rose from 372 in January 2022 to 2,116 in March of this year – an increase of 469%. It represented the biggest percentage change of any UK region or nation. 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, said: “Venture Capital investment in Cardiff totalled £144m 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 £300m 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.”
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