The market in Cardiff is tough but the lack of development in the city means rents could still rise, according to research from Atisreal’s Cardiff office.
In Cardiff prime office rents currently stand at £20/sq ft.
Head of Atisreal’s Cardiff office Anthony Phillips said that it would not be long before rents reached £21/sq ft for city centre space as there was not a large development pipeline in the city.
He said: ‘Our latest Cardiff research shows that 213,000 sq ft of new build offices will complete in 2008, but this figure will decline to 126,000 sq ft in 2009 and currently we have no offices schemes scheduled to complete in 2010.
‘Take up averages approximately 500,000 sq ft a year and for first half of 2008 was 220,000 sq ft. With little supply of good quality second hand space available, this lack of supply is likely to lead to pressure on rents moving up.
‘It has been a tough market but conditions may well get worse before they improve. However, these markets breed opportunities and the good thing about Cardiff is that while in the boom times rents may not rise to the giddy heights of other cities they are also less likely to fall drastically either.’