Take-up

H1 2022 take-up, totalling 215,000 sq ft, was the highest H1 take-up since 2016, and 134% above the H1 2021 total. In terms of deal count, there were 51 transactions in H1 2022 which was 38% above the five-year average for the Cardiff market.

Grade A take-up of 102,000 sq ft accounted for 47% of total take-up in H1. This return was a notable success for the market representing a 37% improvement on the H1 2021 Grade A proportion and a 25% improvement on the five-year average for the market.

Supply

Total supply increased in the second quarter of 2022 to 1.68 million sq ft which represented a 1% increase from Q1 2022 total. That being said, with a strong first half of 2022 in terms of take-up, Savills predicts that supply in the market will reduce in the remaining quarters of the year.

Grade A supply currently sits at 469,000 sq ft. This represents an increase of 3% on the Q1 total. However, with an increasing ‘flight to quality’ as demonstrated by the proportion of Grade A take-up, this figure is expected to decrease in the remaining quarters of 2022.

Take-up by business sector

The TMT sector was the most active sector in H1 2022, accounting for 52% of overall take-up. This included the 65,000 sq ft letting to BT at Capital Quarter and 26,000 sq ft acquisition by Roku at Fusion Point One. Overall, the quantum of TMT take-up in H1 2022 (113,000 sq ft) exceeded the annual total achieved in 2021 by 370%.

It was also a strong start to the year for Insurance & Financial Services, which took a 12% share of overall take-up. This included the 12,000 sq ft Grade A letting to Carlyle Trust at One Central Square.

Rents

There was no change in the prime rent in Cardiff in H1 2022. Although the prime rent remains at £25 per sq ft, Savills latest rental forecasts are predicting rental growth in the market for the first time in six years with a potential to top £30 per sq ft in the City Centre. Average Grade A rents have increased significantly from 2015 to 2021. This trend continued in H1 2022, with average Grade A rents increasing to £23.15 at the end of H1 2022.

Interested in other areas of the UK?

View all of our latest Occupational Office Data research here.