Take-up

Cardiff office take-up in the first quarter of 2025 totalled 94,068 sq ft, achieved through 18 transactions. Take-up was down by 17% on the same period in 2024; however, it was 13% higher than the five-year Q1 average.

Grade A take-up totalled 7,950 sq ft across three deals, accounting for 8% of the total, and was 57% higher than the same period in 2024. Secondary take-up was dominant in the quarter, totalling 86,118 sq ft and accounting for 92% of the total.

Supply

Availability at the end of Q1 2025 stands at 1.3 million sq ft, a decrease of 4% on the previous quarter. Consequently, this means the total vacancy rate has decreased by 50 basis points to 11.7%, continuing to illustrate the lack of stock within Cardiff.

Grade A availability has increased slightly by 9% to a total of 360,000 sq ft, meaning that the Grade A vacancy rate now stands at 3.3%, an increase of 30 basis points. Secondary stock totals 932,000 sq ft and continues to dominate the market, by accounting for 72% of the total.

Take-up by business sector

The most active sector during Q1 2025 was the 'Insurance and Financial' sector, which leased a combined total of 52,000 sq ft across two deals and consequently accounted for 55% of the total. The largest deal in this sector in the first quarter saw Creditsafe take Ty Meridian, Cardiff Gate Business Park, totalling 49,937 sq ft. This was also the largest deal in the sector since 2020.

Another active sector during Q1 2025 in Cardiff was the 'Professional' sector, accounting for 16% of the total by leasing a combined 15,500 sq ft. This was achieved through four deals, which included Avantis Marine Limited acquiring 8,470 sq ft at Southgate House.

Rents

Prime headline rent was maintained in Q1 2025, which has previously increased from £25 per sq ft to £28 per sq ft in Q3 2024, representing an increase of 12% on historical rental levels. This was a significant increase for the market, which hasn't witnessed rental growth for over five years. Savills is forecasting that rents will reach between £30 and £32.50 per sq. ft during 2025, and will exceed £35 per sq. ft for refurbished space by 2029, an increase of 25%. A rent in excess of £40 per sq ft for a pre-let of a new build office is also forecast by 2029.

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