EG, an established provider of data, news and analytics for the commercial real estate sector, has launched a new report detailing the attractions of Wales’ commercial real estate sector.
Drawing on data from hundreds of thousands of transactions (from 2022 and the first quarter of 2023), the report looks at the state of the market and what we can expect from Wales in 2023 and beyond.
The report draws out the following key stats:
- Wales was the only area of the UK to see its economy contract within the first two quarters of 2022.
- Wales reported a jump in average rents: with office rents in 2022 exceeding the five-year average by 13%.
- In Q1 2023, television company Bad Wolf (the new producers of Doctor Who) confirmed that it will rent 8,768 sq ft in Edward House by Cardiff Bay and Optical Express taking on new space (9,832 sq ft) in the city’s Oakleigh House. The latter is both the largest deal by size and the highest achieved rent (£24 per sq ft) in Q1 2023.
- Investment volumes have been lower than in parts of the UK, however, an average yield of 8.91% suggests that those investors who have committed to the Welsh market will reap the rewards.
- Industrial rents have risen sharply: and are now 17% higher (at £7.44 per sq ft) than the five-year average
- Q1 2023 shows how city centre retail premises are adapting to provide premium lifestyle experiences to bring in footfall. In February, the up-market steakhouse Gaucho announced it had agreed to let 8,000 sq ft in Cardiff’s St David's Dewi Sant for what will be its first Welsh restaurant.
- Despite planning approvals remaining high throughout 2022, in the office sector, 2.15 million sq ft is due to complete in 2023, with 401,310 sq ft of completed space currently projected for 2024.
- For industrial and retail, the respective totals – for 2023 – are 6.27 million sq ft and 1.04 million sq ft (and 2.66 million sq ft and 145,323 sq ft in 2024).
