Matt Philips, a senior partner at property consultancy Knight Frank, recently cited a boom in Cardiff office space as evidence that the city is becoming a "UK business centre". With two major developments due to open for business in early 2016, should commercial landlords be looking westward in their search for high growth investments?
Mr. Phillip is particularly keen to highlight BBC Cymru/Wales’ new 150,000 sq ft headquarters at Central Square and the '2 Capital Quarter' development, which will soon offer more than 85,000 sq ft of office space across seven storeys.
Speaking at the unveiling of the 2015 Cardiff Office Market review, Mr Phillips remarked that the risk taken by Rightacres Property and JR Smart, the firms behind the project, has been handsomely rewarded. Both outfits timed their investments to the minute, and the property market is affirming the soundness of their judgement: there’s currently 254,000 sq ft of office space due to be built in the Welsh capital.
What's behind the transformation?
The success of high-profile landmarks such as the Millennium Stadium, which brings in over £100 million every year, has been crucial to the Welsh capital’s regeneration. The city is also due to benefit from a £2 billion metro system, a £300 million Innovation Campus at Cardiff University, and the knock-on effects of strong growth in employment rates.
This potent combination of infrastructure, R&D (Research and Development) and increasing prosperity is creating a self-perpetuating cycle of good fortune and, quite understandably, piquing the interest of property firms.
No time like the present
The UK's commercial property sector is booming, which is great news for landlords who are already in possession of an extensive and diversified portfolio. However, since increased interest from major developers will ultimately be reflected in higher overall prices, smaller commercial property owners may find themselves being priced into stasis. This is especially true in global markets like London, making it doubly important that opportunities in emerging gems like Cardiff are investigated thoroughly.
Landlords should consider their investment options from a position of clarity and stability. Ethical Enforcement Agents can help commercial property owners to eliminate commercial rent arrears, thereby facilitating the accurate financial forecasting needed for sustainable portfolio expansion.