2017 was another strong year for the Cardiff office market, with city centre take-up totalling 625,000 sq ft, according to GVA’s quarterly update of regional office activity, The Big Nine.
The record year was driven by the GPU (Government Property Unit) deal that saw a commitment for 266,000 sq ft at Central Square, providing a massive boost to the market. This was helped by 116,000 sq ft of deals to the education sector, including 62,000 sq ft in three deals to Cardiff University and in Q4 54,000 sq ft to Cardiff Vale College at One Canal Parade.
Tom Merrifield at GVA in Cardiff says, “The lettings activity in the educational sector brought a strong finish to the year. Five GPU deals over the summer contributed to record levels of activity not just in Cardiff, but also Liverpool, Leeds, Birmingham and Manchester.
“We expect deals to the public sector and co-working office space to continue to outperform across the UK in 2018, and this presents opportunities for Cardiff to build further on its strengths. There are still some GPU deals to complete, and the recent industrial strategy has committed to more civil service jobs moving from London. The GPU deals are significant as they provide a foundation to employment, contributing a critical mass to placemaking schemes that are increasingly retaining talent and reinvigorating city centres.”
Tom continues, “With 160,000 sq ft of speculative space completing at Capital Quarter this year, adding to the 80,000 sq ft of grade A space already available, Cardiff is well placed compared to other regional cities to attract new occupiers. The level of grade A supply has been tight in the regional markets over the past three years and currently stands at an average of 10 months, based on past average grade A demand. Low levels of available space are particularly acute in Bristol, Glasgow and Liverpool.”