Prospects for the regional office market have improved significantly in Q1 2012, according to GVA, the UK’s largest independent property consultant. In what is traditionally the slowest quarter of the year, city centre take up in Cardiff has totalled 84,977 sq ft, with a total of 12,000 sq ft of out of town office space also secured.
“We have seen an encouraging increase in enquiries and requirements, pointing to an improvement in activity during the rest of the year,” says GVA’s regional head of office agency in Cardiff, Ben O’Connor.
“There are currently some excellent deals around on Grade A stock, so for companies looking to move, then 2012 may be the year to do so as the same opportunities may not be there in 2013.”
Across the nine centres studied in the Big Nine report, city centre take-up totalled 944,000 sq ft in Q1, which is 7% below the quarterly average. There were 666,000 sq ft of deals in the out of town market – 17% above the quarterly average.
Ben adds that with little development, grade A supply continues to tighten, while secondary property remains in plentiful supply.
“Cardiff is one of a number of cities across the UK in the position where take-up going forward may be reduced as a consequence of the lack of future supply. This is already feeding through to headline rent increases.”
As a result, Cardiff has recorded its highest headline rent at £22psf, although rent free periods have also increased reducing the net effective rent.
He continues, “There are many significant leases, originally taken out 15 – 25 years ago, coming up for renewal over the next two years, adding to the potential availability of good quality, secondary stock, and more importantly some major occupiers looking for new space in the future.
“There are currently significant requirements in the market from Morgan Cole and Hugh James Solicitors. Importantly, Cardiff remains a popular location for inward investment occupiers looking for back office requirements.”
For further information on GVA’s latest Big Nine report visit www.gva.co.uk/research