RESEARCH

THE REPORT 2018 THE CARDIFF REPORT 2018 RESEARCH

CONTENTS FOREWORD

2-3 Foreword

4-5 The UK economy

MARTYN PHILLIPS 6-7 Occupational market WRU GROUP CHIEF EXECUTIVE

8-9 Capital markets I consider myself very fortunate to be responsible for Cardiff’s Principality 10-11 Building for the future Stadium. Besides being the home of the The peppering of crane Welsh Rugby Union (WRU), the stadium masts highlights the is, in my opinion, a development success 12-13 Build to rent central role of the built story for the city. It is globally recognised environment in the future 14-15 Forward thinking and forms a strong symbol of the ambition of Cardiff. Most importantly for me, it is of the city region. 16 Key contacts pleasing that the role of the stadium is being seen and used as a precedent for others to follow.

Since I arrived in Cardiff three years ago, I have witnessed a renaissance of the city. Its skyline seemingly changes with unrelenting regularity, with the peppering of crane masts highlighting the central role plans for an integrated Metro Transport of the built environment in the future of system. Each project will serve to open the city region. The successes at Central up new areas of the city and allow for a Square, Capital Quarter and St David’s seamless movement of people across Shopping centre, clearly demonstrate Cardiff city-region and beyond. what can be achieved through public and These are exciting times for the city. private partnership. These have been Cardiff is on a journey to build a reputation complemented by the flurry of new hotels as a key location for innovation, invention which signpost an increasing number of and industry. The vision of Cardiff and visitors to the city. the Welsh Rugby Union is a shared one. The improvement plans for transport Global recognition. I do hope that over the infrastructure will be the next ‘game coming years, in my role at the WRU, one changer’. The vital electrification of the of my achievements will be to play a small rail route to London is due in 2019. This part in the renaissance of the city that I am coupled with the regeneration of Cardiff passionate about. The ambition to create Central will create a modern, high speed a dynamic, modern and vibrant global city, gateway fit for a capital city. Let’s hope is being recognised and acted upon. We it becomes a reality. The Welsh and UK must maintain momentum and recognise Government are soon to decide on the M4 that continual progress means the work relief road and have outlined ambitious will never quite be finished.

2 3 THE CARDIFF REPORT 2018 RESEARCH RESILIENCE: THE UK ECONOMY IN 2019 After two years of growth continuing in the face of Brexit, it is apparent that politics and the economy are on divergent courses.

A recurring theme when analysing the UK under the watchful eyes of the party economy’s performance since the vote for whips. Throughout the Maastricht Brexit in June 2016, has been divergence EU treaty debate in the early 1990s, between what one would expect to see John Major’s premiership was always as a result of the rollercoaster politics and reported to be hanging by a thread, what has appeared in the statistics. with Eurosceptic Tory backbenchers threatening rebellion. However, the The political debate has been angry, Maastricht treaty passed through polarised and has shown little concern Parliament, and John Major stayed in for the impact on business sentiment. Downing Street for several more years. However, the economy has continued to grow, unemployment has fallen, and the digital revolution has continued undaunted. Canada +++ GDP growth over the summer months Will history repeat itself? At present, for could actually be described as punchy. the tail wagging the dog scenario, the Rather than having to support the hard Brexit enthusiasts need to increase economy with looser monetary policy, the their numbers from a current tally in Bank of England has had the confidence the low fifties to the 326 supporters to raise interest rates, and signal an necessary for a majority in the House intention to do so again in the near future. of Commons. This seems like a high mountain to scale in the space of a few Future trends Figure 1 Remember Maastricht? months. Brexit ending in a fudge, with UK GDP over the previous three months the UK remaining in a transition period Moreover, despite the ocean of newsprint The political debate has been 0.8% The obvious retort to this is: the UK is still until at least December 2020 is an Brexit has attracted, it is not the biggest angry, polarised and has in the EU. Correct, and in a hard Brexit outcome easier to picture. During this trend shaping the economy, and we see 0.7% scenario it is very hard to imagine the period, our expectation is a Canada +++ firms and investors focussing more on shown little concern for the economy would not take a hit, although trade deal will be adopted, as already these other factors in 2019 and 2020. 0.6% impact on business sentiment. it remains to be seen whether no deal hinted at by the EU’s chief negotiator, For some time the UK has been facing 0.5% The economy has continued will be the outcome. At present, no deal Michel Barnier. a growing labour shortage, with unfilled to grow, unemployment has is an outcome popular with a minority of job vacancies at a record high, and 0.4% Such an outcome would allow fallen, and the digital revolution approximately 40 or so Conservative MPs, businesses to plan for the future, which employers struggling to find qualified 0.3% and a dozen Labour members, in a House has continued undaunted. will release to the property market those candidates when recruiting. This will of Commons of 650 representatives. Can 0.2% occupier searches that have been on focus employers’ attention on providing the tail really wag the dog? Perhaps, but hold while executive boards monitored workplaces that enhance staff retention. 0.1% like all shock events, such a surprising the progress of the Brexit talks. However, Also, the GDP figures show the tech and outcome needs to be witnessed before 0.0% occupiers coming to the office market media sector has very much shrugged off it becomes the central scenario in an will find that the Brexit uncertainty has Brexit, and delivered consistent growth -0.1% economic outlook. dampened speculative development momentum. Cities, such as Cardiff, with -0.2% Politicians can be much braver speaking activity, and choice of genuine prime a strong appeal to this rising business AUG-17 SEP-17 OCT-17 NOV-17 DEC-17 JAN-18 FEB-18 MAR-18 APR-18 MAY-18 JUN-18 JUL-18 AUG-18 ‘off the record’ to journalists than when is now limited in many cities. This is a sector are in pole position to lead JAMES ROBERTS, PARTNER they are heading for the division lobbies, recipe for rental growth. economic growth. Source: ONS

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Availability Grade A availability had risen at the end of Q3 with the completion of No.3 Capital OCCUPATIONAL Quarter to 167,995 sq ft, 24% above the 5-year average for the city. Even so, the major letting to Admiral Insurance and MARKET significant current interest for the remaining Grade A space in the city will mean a Occupier activity has remained strong, but limited supply has return to a level below 100,000 sq ft by constrained take-up levels through 2018. Pressure on rent and the year end. incentives has increased as competitive forces have built up. The only new space being delivered in 2019 will be the completion in March of The appeal of the city No.4 Capital Quarter comprising 87,860 continues to grow for sq ft of Grade A accommodation. With occupiers, with the list Take-up and demand is the headline deal of 2018 so far. considerable interest being maintained, Admiral are at capacity in their Ty Admiral of businesses choosing Following two record years of office the trend of occupiers committing HQ on Bridge Street and the new lease Cardiff increasing. take-up in Cardiff, a lack of supply of to new stock during the period of retains one of Cardiff’s most significant construction is set to continue. The other both Grade A and Grade B stock has employers and the only FTSE 100 notable completion in 2019 will be the hindered leasing volumes in 2018. Take- company headquartered in Wales. comprehensive refurbishment of Hodge up had reached 300,000 sq ft at the end House in the heart of the city centre. of Q3, 20% below the long-term average The largest single office deal in 2018 was With work scheduled to commence in for a Q1-Q3 period. The lack of new the purchase of the 85,207 sq ft Woodland the new year, the landlords Cat A works office stock has been a particular factor, House in North Cardiff that was acquired will deliver 67,250 sq ft of high quality with transactions of Grade A offices by Cardiff and Vale University Local Health Board to house their administrative accommodation incorporating some of accounting for 11% at Q3 compared MARK SUTTON, functions. The former Tesco House was the largest floor plates in the city at to 35% in 2016 and 67% in 2017. The PARTNER occupied by the supermarket for 25 19,000 sq ft. rate of deals during the year however, years before it vacated to consolidate remains consistent with 2017, with 77 operations in Dundee. deals completed compared to 83 at the Headline rent & incentives equivalent point last year. This highlights Other notable Grade A transactions The lettings at Two Central Square in 2017 the continuation of new requirements include the 11,000 sq ft lease taken by established Cardiff’s prime office rent at being generated in the marketplace. publishing firm Which? at No.3 Capital £25.00 per sq ft. With all Grade A lettings Quarter and the 9,977 sq ft ground this year achieving close to this figure, Key transactions floor lease agreed by Keolis Amey at St current forecasts indicate that rents will Patricks House. In addition, Knight Frank rise with the next wave of development in Admiral Insurance’s letting of 65,091 has moved to new offices in 3 Assembly 2020/1 to £27.00 per sq ft. sq ft at JR Smarts No.3 Capital Quarter Square at Parmer Cardiff Waterside.

Summary Figure 3 Figure 2 We have seen unprecedented levels Prime office rent Take-up (sq ft) and availability of take-up over the last two years and £120 a busy end to 2018 will back these up 800,000 £110 A A with another strong year. The steady but controlled delivery of new space will £100 700,000 maintain pressure on supply for prime £90 space in particular. 600,000 £80 The appeal of Cardiff continues to grow 500,000 for occupiers and we have seen the list £70

of businesses choosing Cardiff increase £60 400,000 with the recent arrivals of Aon Insurance, Opus Energy, Which?, Splice TV and Keolis £50 300,000 Amey. Alongside amenity and connectivity £40 improvement, high calibre office space 200,000 £30 forms an essential part of the offer that £20 100,000 occupiers require to attract and retain the growing local talent pool. With infrastructure £10 0 improvements and new office schemes ABERDEEN LONDON WE LONDON CITY MANCHESTER BRISTOL EDINBURGH BIRMINGHAM LEEDS GLASGOW CARDIFF SHEFFIELD NEWCASTLE 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 planned, Cardiff is well placed to continue £0 No3 Capital Quarter Source: Knight Frank to secure new occupiers in the future. Source: Knight Frank

6 7 THE CARDIFF REPORT 2018 RESEARCH

leasing market and proved a catalyst to bringing new high profile occupiers to the city. Moreover, investment by Cardiff CAPITAL University in its Tech and Innovation campus is serving as a lure to the Figure 5 fast growth companies of the future. Prime office yield These factors combined with improved MARKETS connectivity and amenity has meant the 7% Investor sentiment remains positive although investment city’s offer has improved. 6% volumes are being limited by stock availability. Consequently, As interest in the regional UK cities Cardiff reflects well continues to strengthen, Cardiff reflects yields are sharpening as competitive pressure builds. 5% in terms of value and well in terms of value and performance performance for investors. for investors. Total return for Cardiff 4% With 2017 proving to be a record year the headline transaction of 2018 to offices is forecast to reach 11.3% in in terms of office investment, a slight date. Covering 11.88 acres the scheme 2018. This is one of the highest of the 3% dip in activity was expected in 2018 as comprises seven office buildings, which major UK cities. Furthermore, when investment opportunities became limited. provide 402,300 sq ft of Grade A space investing in Cardiff buyers are now Over the period Q1-Q3 in 2018, £175m plus MSCP. Two land sites are also part more comfortable that they can retain 2% of offices have traded, this being 14% of the estate which could be developed sufficient liquidity to weather any market below the equivalent period in 2017. to provide a further 360,000 sq ft of new turbulence. 1% Nonetheless, a longer term comparison Grade A office space. The deal reflected a LONDON – WEST END ABERDEEN BIRMINGHAM MANCHESTER BRISTOL EDINBURGH LEEDS GLASGOW CARDIFF NEWCASTLE SHEFFIELD LONDON – CITY illustrates the continued strength of net initial yield (NIY) of 8.25%. This will ensure Cardiff’s profile continues 0% GARETH LLOYD, investor appetite in Cardiff, with the to strengthen, leading to further market- Other major deals to complete in 2018 PARTNER 2018 total more than double the 10-year moving transactions in 2019. Source: Knight Frank include the £23m acquisition of No.2 average for the period. Capital Quarter by Tesco Pension Fund Notably, £140m of transactions were reflecting a NIY of 6.4% and Topland’s sale completed in the first quarter. This is the of Capital Tower to Trinova. Capital Tower, strongest start to a year on record for the besides being an iconic landmark on the city. The second and third quarter of 2018 Cardiff skyline and the tallest office building has seen transactional activity reduce, in Wales, was sold after a competitive sales principally as a product of a lack of stock. process for £25m reflecting a NIY of 7.5%. Encouragingly, uncertainty emanating The sustained attention of investors is a from the political arena has not proved result of Cardiff’s growing standing as an a disruptive influence on investment international business hub. An ongoing decisions so far. series of office development, such as The £84.5m acquisition of Cardiff at Central Square and Capital Quarter, Waterside by Global Mutual has been has underpinned growth in the office

Figure 4 Investment volumes (£m)

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0 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 Cardiff Waterside – Sold to Global Mutual for £84.5m Source: Knight Frank/Property Data

8 9 THE CARDIFF REPORT 2018 RESEARCH

BUILDING FOR THE FUTURE RESIDENTIAL COMMERCIAL

FORMER BROWNING LANDORE COURT CARDIFF EMBANKMENT CALLAGHAN SQUARE LEDGER BUILDING, PLOT 5 & 6 JONES AND MORRIS SITE Size of scheme: 270 units Size of scheme: 2,000 units (SOUTH) CENTRAL QUAY PARMER CARDIFF Size of scheme: 206 units Status: Detailed application Status: Masterplanning Size of scheme: 500,000 sq ft Size of scheme: 220,000 sq ft WATERSIDE Status: Detailed plans granted expected soon Includes Build to Rent Mix Developer: Developer: Rightacres Size of scheme: 358,860 sq ft Includes Build to Rent Includes Build to Rent Developer: Global Mutual CENTRAL QUAY Size of scheme: c. 1,000 units 6 CENTRAL SQUARE NO. 2, JOHN STREET WESTERN COURTYARD, THE INTERCHANGE Size of scheme: 270,000 sq ft Size of scheme: 220,000 sq ft INTERCHANGE, CAPITAL QUARTER Size of scheme: 219 units Status: Detailed application CENTRAL SQUARE expected soon Developer: Rightacres Developer: JR Smart Size of scheme: 307 units Status: Permission granted Size of scheme: 86,00 sq ft Includes Build to Rent Mix Status: Detailed application Includes Build to Rent NO. 1, JOHN STREET Developer: Rightacres expected soon Size of scheme: 100,000 sq ft Includes Build to Rent CRAWSHAY COURT Developer: JR Smart HODGE HOUSE, Size of scheme: 140 units ST MARY STREET EVELEIGH SITE, Status: Site with consent for sale Size of scheme: 67,250 sq ft DUMBALLS ROAD Includes Build to Rent Mix Developer: Legal & General Size of scheme: 109 units Status: Site with consent for sale BRICKWORKS NO. 4 CAPITAL Includes Build to Rent Size of scheme: 100 units QUARTER Size of scheme: 94,500 sq ft Status: Under construction Developer: JR Smart THE WHARF No Build to Rent Size of scheme: 180 units Principality Status: Detailed plans granted Stadium PLOT 1 & 2 A1460 Includes Build to Rent Mix Size of scheme: 168,860 sq ft St David’s 2 Developer: Aviva Shopping Centre SALTMEAD

ADAMSDOWN

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The Walker Rd Marl Cardiff Bay River Taff Cardiff Bay Ocean Way Wetlands Reserve National Assembly Mermaid for Wales Quay Wales A4232 Millennium centre Cardiff Bay

Roath Dock

10 11

Roath Basin THE CARDIFF REPORT 2018 RESEARCH

Rental growth The local population is already Cardiff, a dynamic city, driving BUILD TO RENT increasingly living in private rented both land and house values. accommodation, particularly in the city centre, where average PRS household LEAH MULLIN, ASSOCIATE The proportion of households living in the UK’s Private incomes are highest. The proportion of Definitions households renting privately climbed Rented Sector (PRS) has doubled in the last 10 years or so, Cardiff is a rapidly expanding city, with embrace BTR in the city centre, a trend Private Rented Sector – The sector from 22% in 2001 to more than 60% and it is expected to continue to grow – by the end of 2021 a growing reputation as a great place to which is sweeping the UK’s cities. owned by private landlords across by 2017, and now stands at 31,000 live and work. the UK. nearly one in four households will be renting privately. households (Fig 2). Prime monthly asking There are early signs that the residential rents in the city centre, defined as the But if it is to retain the talent pool market is beginning to respond to the Build-to-Rent – Professionally The sector’s growth has been spurred by Cardiff’s population and economy is top 25% of the market by price, stood generated from Cardiff’s three opportunities offered from this dynamic managed rental accommodation, conditions in both the housing and labour projected to outpace all other major UK at £1,050 during the third quarter of 2018, universities and attract new inward city, which is driving both land and usually at scale, in purpose-built blocks. markets. Younger workers are taking cities over the next decade, according to according to data from Rightmove, up investors and occupiers, it needs to house values. advantage of the increased flexibility of Experian (Fig 3). Growth in Gross Value from £875 during the same quarter deliver more vibrant, amenity rich, renting as a tenure which allows moving Added, a measure of economic growth, A high quality pipeline is beginning to in 2015. flexible living space. between locations without any of the is projected to outpace all other major emerge at a critical time, which will be costs associated with buying or selling cities, other than London. Growth in jobs The outlook for Cardiff’s economy, There are more than 50,000 higher vital to supporting continued growth in a property. is also set to be robust, particularly in the connectivity and demographics supports education students in Cardiff, and the local economy and population. professional services and public services the BTR sector’s growth. Work is well Knight Frank’s research, surveying The Build-to-Rent (BTR) sector is The projects, outlined on the map on sectors, where 14,000 jobs are forecast to advanced to electrify the rail line between 40,000 current students across the undergoing stellar growth as a result. be added over the next decade. London and Cardiff, a journey that takes country indicates 40% of those that p10, need to be delivered over the next The size of the UK market is estimated as little as two hours, and four new qualify in Cardiff plan to stay – a five to ten years to meet the demand to increase from £25bn in 2017 to £70bn Based on these projections, developers stations are being added to the South proportion that rates in the top five from the ever expanding commercial by 2022. have earmarked Cardiff as a new area Wales Metro during the next decade in when compared with rival cities (Fig 1). market which is attracting more and for growth. So far, detailed plans have order to support the city’s expansion. more talent to Cardiff. Pipeline been granted for one BTR project totaling In order to encourage further growth, 206 units, and another application for The growth in Cardiff’s private rented the city needs to deliver living space With the BTR market growing across the The UK BTR sector, previously a US 219 units has been submitted (see map sector comes amid a wider housing that embraces technology and country, we are already seeing strong concept known as ‘multifamily housing’, on p10). Plans are being drawn up for a shortage in the city. The Council’s 2015 creativity. The proportion of people interest from funds both domestic and began in London a little more than a further six schemes likely to be partial Housing Strategy, the latest available, living in private rented accommodation foreign to acquire stable assets. Cardiff £1,050 decade ago. Now there are almost or entirely BTR, which if approved could estimated demand for 30,000 market in the city centre has almost tripled is on the cusp of becoming the next BTR AVERAGE MONTHLY 14,000 completed units with a further deliver more than 3,000 new homes over homes during the three years to 2018, since 2001, but none of it has been the hub following in the footsteps of London PRIME ASKING RENT, 14,000 under construction. the coming decade. yet just 368 homes were completed kind of purpose-built, professionally and Manchester. The city certainly has 2 BED FLAT, CARDIFF during the 2017/18 financial year, managed stock that has proved so the demographics and economic CITY CENTRE according to official data. Momentum is successful in London, Manchester and prospects to support the concept, Figure 1 gathering, however, and housing starts Source: Rightmove Birmingham. In order to meet this however, residential developers now Student retention rates across all tenures tripled to 1,042 during demand, now is the time to fully need to deliver. Percentage of current students that plan to remain once qualified the same year. 37% TOTAL AVERAGE 67.1% HOUSE PRICE GROWTH, CARDIFF, 2008-2018 Figure 2 Figure 3 Source: Land Registry Proportion of households living in PRS Population projections 2019-2029 47.3% 45.5% GREATER NEWCASTLE CARDIFF LONDON EDINBURGH BRISTOL MANCHESTER BIRMINGHAM SHEFFIELD NOTTINGHAM LEEDS UPON TYNE GLASGOW 40.5% 40.6% CARDIFF 62% 9.65% 9.03% 7.72% 7.16% 5.68% 5.51% 4.66% 4.43% 4.42% 3.59% 2.30% 13.1% GREATER NEWCASTLE 38% 37% 37% CARDIFF LONDON EDINBURGH BRISTOL MANCHESTER BIRMINGHAM SHEFFIELD NOTTINGHAM LEEDS UPON TYNE GLASGOW KNIGHT FRANK HOUSE 52% 9.65% 9.03% 7.72% 7.16% 5.68% 5.51% 4.66% 4.43% 4.42% 3.59% 2.30% PRICE FORECAST, WALES, 2018-2022 26% 29% GVAGREATER Growth, 2019-2029 NEWCASTLE 25% LONDON CARDIFF EDINBURGH BRISTOL MANCHESTER BIRMINGHAM NOTTINGHAM LEEDS SHEFFIELD UPON TYNE GLASGOW Source: Knight Frank Research 22% 24% 22% 21% 20% 19% 18% 19% 19% 17% 17% 16% GREATER NEWCASTLE LONDON CARDIFF EDINBURGH BRISTOL MANCHESTER BIRMINGHAM NOTTINGHAM LEEDS SHEFFIELD UPON TYNE GLASGOW 24% 10% 22% 21% 20% 19% 18% 19% 19% 17% 17% 16% 1,042 NEW HOMES STARTED, Pou ro r Lee Eur Cr Loo Nece Mceer 2001 2015 2017 2017/18, CARDIFF *GVA is the measure of the value of goods and services produced in an area Source: Experian Source: Statistics for Wales Source: Knight Frank Research, UCAS. *Survey of 40,000 current students Source: Experian

12 13 22.14 21.1 24.1 1.04 1.21 1.15 1.81 1.25 20.02 1.43 18.2 C S E 1.04 22.14 21.1 24.1 20.02 1.43 18.2 1.21 1.15 1.81 1.25 C S E THE CARDIFF REPORT 2018 RESEARCH

FORWARD THINKING Cardiff and the capital region must continue to The pace of change in the way people work, live and socialise is accelerating. This ‘lifestyle’ shift is develop innovative, flexible and interesting spaces. creating an unprecedented array of challenges and opportunities for both business and UK cities. MATT PHILLIPS, OFFICE HEAD, KNIGHT FRANK CARDIFF

Places defined by amenity Going green With working practices changing, and the With all major UK cities tasked with a UK experiencing near full employment in reduction in their carbon footprint, people recent years, the workplace has become a movement and transport infrastructure is key component in the battle for talent. increasingly being scrutinised. This saving Amenity has quickly risen as a differentiating requirement comes at a time when the factor, with the range of services that fall into trend across the major cities in the UK is this category broadening at pace. Niceties one of a rising population. This growth adds such as cafés or fitness provision are now a pressure on the city’s transport system. common attribute of the modern working environment, although their regularity Transport infrastructure in Cardiff in the perhaps means that a unique selling point is future will need to address the no longer being achieved. The next wave of environmental agenda and also support amenity based services are now appearing, role of transport in economic growth. One many of which redefine the worker/ aim already set by the Cardiff City Council workplace relationship. is to have a ‘50:50 transport modal split’ by 2021 – meaning that 50% of journeys will A leaning toward personal amenity and be made by sustainable transport. By 2026, Council has stated it will aim to have its resident numbers will have increased by a wellness is now part of the future direction of Creative Cardiff the modal split is expected to be 60:40. travel. Physical healthcare and lifestyle fleet of small vehicles converted to further 10%. Existing and projected growth Cardiff has seen its ambition of developing Other avenues will need to be explored. support is a key area of this change, The workplace has alternative fuel by 2022, and its heavy in people is proving a catalyst to drive change a reputation as a ‘Tech Hub’ begin to recognising the needs of an ageing UK A favoured route is through the use of goods vehicles by 2030. This means that throughout the city’s infrastructure. become a key materialise in recent times. Employment in the workforce, a growing corporate well-being electric vehicles. The UK government has charging points will be a feature of Cardiff’s component in the information and communication jobs has risen Employment and residential development agenda and the pressure on public services. already outlined a plan to ban new sales of infrastructure in the very near future. by 30% in just the past 10 years, with the is escalating and changing the shape of the Walk-in surgeries, physiotherapy and the battle for talent. petrol and diesel cars and vans from 2040. Technology sectors contribution to the city. The comprehensive re-development provision of online diagnostic tools are good Hybrids and electric vehicles will be the long economy rising to over £600m a year. A changing city of Central Square and Capital Quarter examples of how this need is being term replacement, although currently this Importantly, Cardiff’s tech start-up community Cardiff has changed significantly over the are obvious changes alongside the accommodated. These are complemented type of vehicle only constitutes 5.5% of the is growing. Fledgling tech companies are now regeneration of St Marys Street and Mill by more physical or structural changes such UK’s new car market. Car charging points past decade. Its resident population has able to benefit from bank funding and an influx Lane as a Leisure Quarter. Pedestrian links as quiet zones, creative spaces and are highlighted as a particular restricting grown by 10% since 2008 making it one of of specialised lenders. The Development from Central Station to the retail heart now relaxation pods. factor with Wales having the second lowest the fastest growing cities in the UK over Bank of Wales for example offers entry level amount of any region. Nonetheless, Cardiff this period. By 2028, forecasts indicate that drive people towards and St Education is another growth area, with the investment from £50k to £2m. David’s Shopping Centre. A career corporate university gaining favour and The launches of Cyber Wales and Tech Wales structure is being developed, with the dedicated areas and resources for continual will enable further growth by bringing together strong academic base of the city supporting learning. With the pace of change in the businesses with universities and the public the next wave of talent to employers. business world quickening, both sector. Cardiff has also been identified as development of the workforce and reskilling How people are housed is also an example one of eleven UK regional hubs that form the will rise in importance in order for firms of change. Growth in PRS in the UK is backbone of a national network of digital to stay competitive. Lifelong learning underpinning the development of purpose excellence. Local real estate development seemingly offers a defined career while built rental blocks. The BTR sector in Cardiff will, in addition, escalate the pace of growth. shaping the employees skills to the best is at an early phase, but its growth could For example, the Brains Brewery site at benefit of the company. enable increasing numbers of renters to live in Central Quay has been identified by Cardiff the city centre – in many cases in locations Amenity requirements of course do currently, Metropolitan University as the preferred site where renters could not afford to buy. and will in the future, stretch beyond those to develop their technology campus. With outlined. Mental health for example, may be access to staff highlighted as the most Future developments, such as at Central the next step on the developing wellbeing important attribute of establishing a presence Quay, are aligned to accommodate both agenda. In short, the drive toward an in a particular location, the development of commercial and residential property. This employee focussed package will stay central this campus will ensure that Cardiff is well combined package supports the ‘lifestyle to space usage and company strategy. prepared to supply the next wave of talent. offer’ required of a modern, progressive city.

14 15 COMMERCIAL RESEARCH Will Matthews Partner, Head of Commercial Research +44(0) 20 3909 6842 [email protected]

Darren Mansfield Associate +44(0) 20 7861 1246 [email protected]

RESIDENTIAL RESEARCH Patrick Gower Associate +44(0) 20 3640 7015 [email protected]

LEASING Matt Phillips Office Head +44 29 2044 0122 [email protected] Mark Sutton Partner +44 29 2044 0135 [email protected]

CAPITAL MARKETS Rob Jones Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide Partner range of clients worldwide including developers, investors, funding organisations, corporate +44 29 2044 0128 institutions and the public sector. All our clients recognise the need for expert independent advice [email protected] customised to their specific needs. Gareth Lloyd Partner RECENT MARKET-LEADING RESEARCH PUBLICATIONS +44 29 2044 0141 [email protected]

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CLASH OF Leah Mullin THE TITANS THE WEALTH REPORT 2018 Next wave technology and the productive workplace Associate MAKING THE RIGHT IMPACT THE FUTURE Lessons from OF REAL ESTATE Bloomberg’s new THE TRENDS SHAPING European HQ 40 LEADING CITIES +44 29 2044 0138

SPACE SUPPORTING STRATEGY [email protected] Findings from ELON Knight Frank’s Global Occupier Survey MUSK ACTIVE TRAINS, ROCKETS

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