Cardiff Prime Office Rents Rise 34% Amid Stock Shortage

Knight Frank reported that prime office rents in Cardiff have risen by 34% over the last two years, reaching £33.50 per sq ft from £25 per sq ft seven years ago. This increase is nearly double the average 18% rise seen across the UK’s ten largest office markets outside London. The city currently faces a shortage of new Grade A office stock, with availability falling to 1.5% in the last quarter.

The sharp rise in prime rents and the low availability of high-quality space indicate market tightness in Cardiff. Developers require pre-let agreements north of £40 per sq ft to make new office construction financially viable, given high construction and borrowing costs.