Office take-up in Cardiff reached its highest level since 2017, totalling 256,600 sq ft, five times the level of the previous quarter and over double the 10-year quarterly average. This was driven by one of the largest office deals ever seen in the market, as Cardiff and Vale College acquired the 145,000 sq ft St William House for educational use. Take-up elsewhere was also positive, especially out-of-town where activity doubled the 10-year average following notable deals at Mellons and Eastern Business Parks.
Office vacancy rose 190 bps to 13.3%, the highest rate in the Big Nine. This was driven by additional secondary space coming to market, as Grade A vacancy remained unchanged at 1.8%.
Office prime rents increased 12% to £33.50 psf, achieved at Grade A space in the city centre continuing Cardiff’s recent period of positive rental growth. Rent-free periods remained unchanged at 18 months for a 10-year lease.