With a healthy level of deals in the pipeline, 2013 is looking to set the record of the highest take-up across the regional markets in five years, according to the latest market analysis from GVA, the UK’s largest independent commercial property adviser.
The Big Nine reports the regional city centre take-up levels totalled 1,126,000 sq ft in Q3, 10% above the five-year quarterly average.
In Cardiff, city centre take-up has been just below average, recording 75,142 sq ft in Q3, compared to the five year quarterly average of 79, 215 sq ft.
City centre and out of town combined in the nine GVA regional office centres recorded take-up of 1,737,000 sq ft in Q3, 7% above the five-year quarterly average. The city centre market made up 65% of this total while the out of town market recorded take-up of 611,000 sq ft, a 2% rise on the quarterly average.
Tom Merrifield, Head of Agency at GVA in Cardiff, comments: “The existing available Grade A space in Cardiff, combined with just a handful of new developments in the pipeline, mean restricted choice for those looking to relocate, and constrained opportunities for inward investment. But this is being addressed.
“The Creative Industries Media Centre, together with Capital Quarter, the Rightacres site at Central Square, Callaghan Square phase 2, and the Admiral Insurance pre-let, remain the focus of Cardiff’s development.
“There are also a number of sites in and around the train station that could help resolve the situation and be brought forward over the medium term; sites at Capital Quarter and Cardiff Bay have infrastructure and are ready to go; others require more work before coming to market.
“For developers the mix of risk, viability and funding issues still remain. For a healthy level of new supply there will have to be a change in appetite but with many newer schemes across the UK emphasising phased development there is bound to be a lag in implementation. As predicted for some time, this leaves the ingredients for high quality refurbishments as being the most likely stop gap solution.”