Take-up

Cardiff office take-up in Q2 2024 totalled 75,000 sq ft, 6% higher than the same period in 2023 and 29% above the five-year average. With 19 deals in total, this took the half-year total to 188,000 sq ft, the highest half-year since 2022 with 49 transactions. H1 was 27% higher than H1 2023, and up 26% on the long-term average.

Grade A take-up in Q2 totalled 21,000 sq ft, therefore comprising 28% of the total, which was 52% higher than the Q2 five-year average. Grade A take-up in H1 2024 accounted for 14% of the total.

Supply

Supply remained broadly unchanged at the end of H1, with a total of 1.6 million sq ft of space available. Consequently, this means that the vacancy rate remains the same at 14.7%.

Grade A availability totals 516,000 sq ft (including grey space), which is only slightly above the total for Q1 2024, and accounts for 32% of the total. This means that the Grade A vacancy rate also remains unchanged at 4.7%. Secondary space continues to dominate the supply by totalling 1.1 million sq ft, therefore 68% of the total.

Take-up by business sector

During H1, overall, the 'Public Services, Education and Health' sector was the most active, leasing/ purchasing 78,000 sq ft of space across nine deals, accounting for 41% of the half-year total. The largest deal within the sector, and subsequently H1, was to the Welsh Government, who purchased a total of 51,000 sq ft at Centre 7, Cardiff Gate Business Park, for a semiconductor hub. 

A further notable business sector during H1 was the 'Insurance and Financial' sector, which leased a total of 25,000 sq ft, and was 14% of the total. This was over five deals, the largest of which totalled 16,000 sq ft and was acquired by Go.Compare at Hodge House in Q2. 

Rents

There was no change in the Prime rent in Cardiff during H1 2024, with the Prime rent remaining at £25 per sq ft, whilst average Grade A rent rates have also remained at £23 per sq ft. Looking at growth forecasts, it is expected that Prime rents in Cardiff will reach £28 per sq ft during 2024, representing an increase of 12%.

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View all of our latest H1 2024 Occupational Office Data research here.