Take-up in the Cardiff office market has hit a record in Q3, according to Savills.
The quarterly total reached 183,992 sq ft, 83% above the long-term average of 100,275 sq ft, while take-up for the full year is expected to exceed 600,000 sq ft in 2016, 33% above the 10-year average.
Gary Carver, director of the business space team at Savills Cardiff, said: “This year is set to be exceptional for office take-up levels in Cardiff. The public sector has been the most active in the market, accounting for 31% of the take-up as of the end of September.”
“Large deals in the city over the quarter include the 54,600 sq ft letting of Brunel House to HMRC and the 29,000 sq ft letting of Friary House to Cardiff University.”
Grade A availability is now 113,000 sq ft, enough to supply a year of grade A demand at current rates, says Savills.
The average office rent in Cardiff has reached £25 per sq ft.
Office investment volume for the city has hit £83m in Q3; 28% above the long-term average for this stage in the year.
While the UK institutions have been less active, the Cardiff market has seen an increased appetite from overseas investors, which have accounted for £39m of total office investment to date.
The firm expects this trend to continue to the end of the year as international investors capitalise on the weak pound.
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