The Smart Pounder

Claire Higgins, Head of Commercial research, Knight Frank, a research company stated that according to the current research, prime office rents of prime office space in Cardiff is witnessing a marked increase. Additionally, the research also revealed that starting from the end of 2009 to the beginning of the second quarter of 2010, places like Newport and Swansea will also show considerable increase in the demand for office property, which would ultimately mean increase in rents over the period of the next year, provided of course new stocks are available.

The research categorically stated that while the increase in office rents is apparent in all cities of the UK, the city of London will witness a downfall, largely because it is still suffering from the repercussions of the economic slowdown. However, Higgins went on to add that the situation as regards prime office rents will remain constant.

Additionally, the research stated that while the increase in office rents is definitely good for the market, it also means additional burden on the landlords, who now have to woo tenants by giving various incentives, including a 30 month rent free status for a lease spanning out to ten years.

Cardiff, was the first city to witness rise in prime rent desk rates in the country, with two leading businesses choosing to let out space in the area. The first was let out by an architectural firm, B3 Burgess, who let out nearly 4000 Sq ft of property at the Cardiff Callaghan Square scheme. Secondly, the law firm M & A Solicitors let out nearly 10,000 Sq ft of office property at the 3 Assembly Square scheme in Cardiff Bay.