Office rents jump 14% in a few months!

http://www.propertyweek.com/in-depth/ma ... 22.article

Interesting article suggesting that prime rents have jumped from £22 a square foot to £25 as a lack of new grade A supply bites. There is going to be a supply crunch with no new supply between now and late 2017. So instead we might see some more refurbs on top of those already underway.

Interesting news on lettings too.

In One Central Square, only 3% (4,000 sq ft) is left after the following lettings:
Blake Morgan, which agreed to pay rent of £21/sq ft on 28,000 sq ft.
Julian Hodge Bank, which will move into 16,500 sq ft,
Slater and Gordon, which last year bought the Cardiff law firm Leo Abse & Cohen
And Royal Bank of Scotland has taken 6,000 sq ft for Entrepreneurial Spark, a service for start-up companies.
MotoNovo Finance, a lender to car buyers, signs a lease on 70,000 sq ft; more than half the building.
Milk & Sugar restaurant/café/bar is taking 3,000 square foot on the ground floor.
Rents from £21 - 25 a square foot achieved.

In Two Capital Quarter:
Opus Energy, which has taken the first floor of 12,505 sq ft on a 10-year lease at £19/sq ft.
Public Health Wales took a 15-year lease on 54,000 sq ft, also at £19/sq ft.
Two parties are looking at remaining 18,000 sq ft, at a quoting rent of £20/sq ft.

Quite a lot of requirements, including MoJ and HMRC, as well as Legal and General.

Deloitte was the big disappointment, taking Park St at just £12 sq/ft. MediaWales deperate for tenants obviously! (I think they are down to less than 2 floors of a 6-storey building that was built especially for them perhaps 6-7 years ago).

In terms of new developments:
- 2 Central Square
- 3 Capital Quarter
- 3 Fusion Point
- The Interchange

Then a bit less concretely
- John St (up to 350,000 sq feet can be built here apparently)
- Callaghan Southside (up tp 500,000 sq ft)

The big long shot:
- Cardiff Waterside

I don't know what the answer is here. Developers are obviously afraid of prices falling so can be reluctant to build. High rental prices can be seen as a kind of city virility test. But if it's down to lack of supply rather than a booming economy it's a real problem and we might lose business.

This article has so much information. Imagine if Wales Online actually did some proper journalism!

Cardiff University’s School of Journalism, Media and Cultural Studies is considering taking 30,000 sq ft at two central square

Odd why would they move there? What does this mean for the Bay?

Slater and Gordon, which last year bought the Cardiff law firm Leo Abse & Cohen

Presumably this means that all the houses LA&C have knocked together on Churchill Way will fall vacant. I can't see any interest in them as office space so it will be interesting to see what happens to them. It's a nice Victorian streetscape but its hard to think of a new use for the current buildings.

Cardiff University’s School of Journalism, Media and Cultural Studies is considering taking 30,000 sq ft at two central square. Odd why would they move there?

Because it's next door to the BBC. A high proportion of Jomec students go straight to the BBC. BBC Wales is full of Jomec graduates.

Slater and Gordon are in big trouble. Their take over of a large number of UK Law firms including Leo Abse and Cohen has been a disaster. Can't see them taking prime office space any time soon.

http://www.legalfutures.co.uk/latest-ne ... ganisation