Take-up

Cardiff office take-up in Q2 2024 totalled 146,000 sq ft across 22 transactions and was the highest quarterly take-up since Q4 2020. Q3 take-up was 122% higher than the same period in 2023 and 84% higher than the five-year Q3 average. Year-to-date take-up totals 335,000 sq ft, which is 56% higher than Q1–Q3 2023.

Grade A take-up in Q3 totalled 120,000 sq ft, therefore accounting for 82% of the overall total. This was the highest Q3 Grade A proportion of the total on record for Cardiff. 

Supply

Availability at the end of Q3 2024 totals 1.5 million sq ft, an 8% decrease on the previous quarter. The vacancy rate currently stands at 13.7%, which represents a decrease of 10 basis points.

Grade A supply totals 496,000 sq ft and accounts for 33% of the overall total. This is a decrease of 4% on the previous quarter. The Grade A vacancy rate now stands at 4.5%, a decrease of 20 basis points, demonstrating increased occupier appetite for best-in-class space in Cardiff. 

Take-up by business sector

The most active sector during Q3 2024 was the 'Professional' sector, which leased a total of 51,000 sq ft across five transactions, therefore accounting for 35% of the total. The largest transaction of the sector and the quarter saw PwC acquire 33,000 sq ft at One Central Square.

Another active sector in Cardiff was the 'Banking' sector, which accounted for 19% of the total. This was across one transaction, that saw Aldermore Bank acquire 28,000 sq ft at Two Central Square. This was the largest deal for the sector since 2002. 

Rents

Prime headline rent in Q3 2024 increased from £25 per sq ft to £28 per sq ft, representing an increase of 12%. This is a significant increase for the market, which hasn't witnessed rental growth for over five years, and looking at growth forecasts, it is expected that rents will exceed £32 per sq ft by 2028, an increase of 14% on current rental levels. 

Interested in other areas of the UK?

View all of our latest Q3 2024 Occupational Office Data research here.