Agent seeing demand for Cardiff offices

Posted on by John Cronin

A south west based commercial property consultants reports that demand for smaller footage office space in Cardiff is returning.

Alder King, who have seven offices across the south west, believe that they are a seeing a slow return of demand for offices with a floor space under 5,000 sq ft. The agents have recently secured two office lettings in Cardiff, both involving floor space of under 2,000 sq ft. Partner, Owen Young says: “Whilst businesses remain cautious about committing to premises over 5,000 sq ft, they are proving more willing to commit to smaller suites in established locations.”

The first of the two lettings secured is for a 1,659 sq ft office suite on the ground floor of Wilson House at Ashtree Court on Cardiff Gate Business Park. Music systems specialist Linn Centres Ltd have taken a five year lease at a base rate of £16,000 – equivalent to £9.65 / sq ft although the rent good rise as the letting has incentives.

Cardiff Gate officeCardiff Gate is a large business park over a 100-acre site and offers a range of office buildings (typical building pictured). The park has a wide range of tenants including several international businesses such as Coca Cola and Lloyds Banking Group. Serviced office provider Regus also has a centre within the business park.

Some 500,000 sq ft of floor space within the park is now occupied. Approximately 70% of the available land has now been developed and further office blocks are being constructed. Work started earlier this year on a speculative 82,880 sq ft development with a first 20,000 sq ft phase scheduled for release next month.

In a second, smaller deal, Alder King have secured a 742 sq ft office suite letting within the Globe Centre in the centre of Cardiff on a five year lease at an annual rent of £6,000 – equivalent to approximately £8 / sq ft.

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