Q1 ’26 take-up reached just under 50,000 sq ft, 52% below the previous quarter and 57% below the 10-year quarterly average. No deals in excess of 10,000 sq ft were recorded, contributing to subdued demand across the city. The OOT market was particularly quiet, with just one deal completing.
The addition of St William House and Principality House, two large Grade B spaces have pushed up the vacancy rate to 11.4%, 203 bps up on the previous quarter. Despite this, Grade A vacancy remains constrained at 1.8%. With no developments currently under construction across Cardiff, Grade A supply shortages will persist over the short to medium term.
Prime office rents stand at £30 psf, this represents no movement on the previous quarter but annual growth of 7.1%. Rent-free periods remain at 18 months on a 10-year lease.