Take-up

Q4 2021 take-up, totalling 82,939 sq ft, was the highest quarterly take-up figure in 2021. This was, however, 50% lower than the total take-up for Q4 2020. It should be noted that this was significantly influenced by the pre-let deal of 120,000 sq ft to Legal & General at the Interchange building in Q4 2020.

Grade A take-up accounted for 5% of total take-up in Q4, but total annual take-up decreased again in 2021. Momentum has been building in the market, though, with take-up increasing in each quarter throughout the year.

Supply

Total supply increased in 2021 to 1,432,806 sq ft, which represented an 18% increase from 2020. This is the highest quantum of available supply since 2015.

Grade A supply currently sits at 414,625 sq ft – this represents an increase of 75% on the 2020 total. In addition, the total vacancy rate has increased to 13%, which is a 2% growth on the 2020 figure. Grade A vacancy rate has also grown by 1.7% to 3.8%.

Take-up by business sector

The Public Services, Education and Health sector was the most active sector this year, accounting for 34% of take-up. It was also a strong year for Business and Consumer Services, which took a 10% share of overall take-up.

The Insurance and Financial Services sector declined significantly this year, recording 8% take-up in 2021, which is 32% down on the 2020 share.

Rents

There was no change in the prime rent in Cardiff in 2021, which currently stands at £25 per square foot. The prime rent in the market has remained static since 2016. Average Grade A rents have increased significantly from 2015 to 2021, though. The average Grade A rent in 2021 was £23 per square foot, representing a 2.2% increase on 2020 and 7.3% on 2019.

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