THE CARDIFF REPORT 2018 - RESEARCH - Knight Frank
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RESEARCH THE CARDIFF 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
12-13 Build to rent is, in my opinion, a development success
story for the city. It is globally recognised
central role of the built
14-15 Forward thinking and forms a strong symbol of the ambition environment in the future
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
months. Brexit ending in a fudge, with UK GDP over the previous three months
Remember Maastricht? Moreover, despite the ocean of newsprint
the UK remaining in a transition period The political debate has been
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 0.8%
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
scenario it is very hard to imagine the period, our expectation is a Canada +++ firms and investors focussing more on
0.7%
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 0.4%
job vacancies at a record high, and
approximately 40 or so Conservative MPs,
Such an outcome would allow fallen, and the digital revolution
businesses to plan for the future, which employers struggling to find qualified 0.3%
and a dozen Labour members, in a House candidates when recruiting. This will
has continued undaunted.
will release to the property market those
of Commons of 650 representatives. Can focus employers’ attention on providing
0.2%
occupier searches that have been on
the tail really wag the dog? Perhaps, but workplaces that enhance staff retention.
hold while executive boards monitored 0.1%
like all shock events, such a surprising Also, the GDP figures show the tech and
the progress of the Brexit talks. However,
outcome needs to be witnessed before media sector has very much shrugged off
0.0%
occupiers coming to the office market
it becomes the central scenario in an Brexit, and delivered consistent growth
will find that the Brexit uncertainty has -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 JAMES ROBERTS,
‘off the record’ to journalists than when is now limited in many cities. This is a sector are in pole position to lead
PARTNER
they are heading for the division lobbies, recipe for rental growth. economic growth. Source: ONS
4 5
THE CARDIFF REPORT 2018 RESEARCH
OCCUPATIONAL
Availability
Grade A availability had risen at the end
of Q3 with the completion of No.3 Capital
MARKET
Quarter to 167,995 sq ft, 24% above the
5-year average for the city. Even so, the
major letting to Admiral Insurance and
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
the year end.
constrained take-up levels through 2018. Pressure on rent and
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
Take-up and demand is the headline deal of 2018 so far. occupiers, with the list
considerable interest being maintained,
Admiral are at capacity in their Ty Admiral the trend of occupiers committing of businesses choosing
Following two record years of office HQ on Bridge Street and the new lease
take-up in Cardiff, a lack of supply of to new stock during the period of Cardiff increasing.
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
The largest single office deal in 2018 was House in the heart of the city centre.
of Q3, 20% below the long-term average
the purchase of the 85,207 sq ft Woodland With work scheduled to commence in
for a Q1-Q3 period. The lack of new
House in North Cardiff that was acquired the new year, the landlords Cat A works
office stock has been a particular factor,
by Cardiff and Vale University Local will deliver 67,250 sq ft of high quality
with transactions of Grade A offices
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 PARTNER
to 35% in 2016 and 67% in 2017. The
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. Headline rent & incentives
deals completed compared to 83 at the
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,
floor lease agreed by Keolis Amey at St current forecasts indicate that rents will
Key transactions 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
£110
800,000
Grade A Availability (sq ft)
with another strong year. The steady
Take-up (sq ft) 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,
£50
Opus Energy, Which?, Splice TV and Keolis
300,000
Amey. Alongside amenity and connectivity £40
improvement, high calibre office space
200,000 £30
forms an essential part of the offer that
occupiers require to attract and retain the £20
MANCHESTER
LONDON CITY
BIRMINGHAM
100,000
LONDON WE
NEWCASTLE
EDINBURGH
ABERDEEN
SHEFFIELD
growing local talent pool. With infrastructure
GLASGOW
BRISTOL
CARDIFF
£10
LEEDS
0 improvements and new office schemes
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
CAPITAL
leasing market and proved a catalyst to
bringing new high profile occupiers to
the city. Moreover, investment by Cardiff
University in its Tech and Innovation
MARKETS
campus is serving as a lure to the Figure 5
fast growth companies of the future. Prime office yield
These factors combined with improved
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
yields are sharpening as competitive pressure builds. continues to strengthen, Cardiff reflects
in terms of value and well in terms of value and performance
5%
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
LONDON – WEST END
2%
Over the period Q1-Q3 in 2018, £175m plus MSCP. Two land sites are also part more comfortable that they can retain
of offices have traded, this being 14% of the estate which could be developed
LONDON – CITY
sufficient liquidity to weather any market
MANCHESTER
BIRMINGHAM
NEWCASTLE
EDINBURGH
below the equivalent period in 2017.
ABERDEEN
to provide a further 360,000 sq ft of new
SHEFFIELD
1%
GLASGOW
turbulence.
BRISTOL
CARDIFF
LEEDS
Nonetheless, a longer term comparison Grade A office space. The deal reflected a
illustrates the continued strength of net initial yield (NIY) of 8.25%. This will ensure Cardiff’s profile continues 0%
GARETH LLOYD, to strengthen, leading to further market-
investor appetite in Cardiff, with the PARTNER
Other major deals to complete in 2018 moving transactions in 2019. Source: Knight Frank
2018 total more than double the 10-year
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)
350
300
250
200
150
100
50
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: Welsh Government Developer: Rightacres Size of scheme: 358,860 sq ft
Includes Build to Rent Includes Build to Rent Developer: Global Mutual
CENTRAL QUAY
6 CENTRAL SQUARE NO. 2, JOHN STREET
WESTERN COURTYARD, THE INTERCHANGE Size of scheme: c. 1,000 units
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
Developer: Rightacres Developer: JR Smart CENTRAL SQUARE
expected soon Size of scheme: 86,00 sq ft
Size of scheme: 307 units Status: Permission granted
Includes Build to Rent Mix Developer: Rightacres
Status: Detailed application Includes Build to Rent NO. 1, JOHN STREET
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
THE WHARF No Build to Rent
Developer: JR Smart
Size of scheme: 180 units Principality Cardiff Castle
Status: Detailed plans granted Stadium PLOT 1 & 2
A1 CARDIFF BAY
Includes Build to Rent Mix 46
0 Size of scheme: 168,860 sq ft
St David’s 2 Developer: Aviva
Shopping Centre
SALTMEAD
ADAMSDOWN
E Tynd SPLOTT
all St
The Walker
Marl R d
Cardiff
aff Bay
River T
Cardiff Bay Red Dragon
National Centre Ocean W
Wetlands Reserve ay
Assembly
Mermaid for Wales
Quay
Wales A4232
Millennium
centre
Cardiff Bay
Roath Dock
10 11
THE CARDIFF REPORT 2018 RESEARCH
BUILD TO RENT
Rental growth
The local population is already Cardiff, a dynamic city, driving
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
Rented Sector (PRS) has doubled in the last 10 years or so, households renting privately climbed
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%
owned by private landlords across
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.
by 2017, and now stands at 31,000
nearly one in four households will be renting privately. live and work.
the UK. 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 deliver more vibrant, amenity rich,
from £875 during the same quarter
renting as a tenure which allows moving Added, a measure of economic growth, flexible living space. A high quality pipeline is beginning to
in 2015.
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 40,000 current students across the The projects, outlined on the map on
sectors, where 14,000 jobs are forecast to advanced to electrify the rail line between
undergoing stellar growth as a result. p10, need to be delivered over the next
be added over the next decade. London and Cardiff, a journey that takes country indicates 40% of those that
The size of the UK market is estimated five to ten years to meet the demand
as little as two hours, and four new qualify in Cardiff plan to stay – a
to increase from £25bn in 2017 to £70bn Based on these projections, developers from the ever expanding commercial
stations are being added to the South proportion that rates in the top five
by 2022. have earmarked Cardiff as a new area market which is attracting more and
Wales Metro during the next decade in when compared with rival cities (Fig 1).
for growth. So far, detailed plans have more talent to Cardiff.
order to support the city’s expansion.
been granted for one BTR project totaling In order to encourage further growth,
Pipeline 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,
Source: Rightmove
Figure 1 gathering, however, and housing starts 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%
13.1% 38% 37% 37%
CARDIFF
CARDIFF CITY CENTRE
62% 9.65%
CARDIFF
9.03%
GREATER
LONDON
7.72%
EDINBURGH
7.16%
BRISTOL
5.68%
MANCHESTER
5.51% 4.66% 4.43% 4.42% 3.59%
NEWCASTLE
2.30%
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% GVA
GREATERGrowth, 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%
Birmingham
GREATER NEWCASTLE
Manchester
LONDON CARDIFF EDINBURGH BRISTOL MANCHESTER BIRMINGHAM NOTTINGHAM LEEDS SHEFFIELD UPON TYNE GLASGOW
Newcastle
Edinburgh
Plymouth
24% 22% 21% 20% 19% 18% 19% 19% 17% 17% 16%
10%
London
1,042
Cardiff
Bristol
Leeds
NEW HOMES STARTED,
2017/18, CARDIFF 2001 2015 2017
*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
Birmingham
Manchester
Nottingham
Newcastle
Tyne Tyne
Edinburgh
Glasgow
Sheffield
London
Greater
rdiffCardiff
istolBristol
edsLeeds
.1422.14
.7121.71
.1624.16
.0220.02
.4319.43
.2618.26
.0417.04
.2119.21
.1519.15
.8116.81
.2516.25
12 13
ngham
hester
ngham
upon
castle
burgh
sgow
ffield
don
ater
THE CARDIFF REPORT 2018 RESEARCH
FORWARD THINKING Cardiff and the capital region must continue to
develop innovative, flexible and interesting spaces.
The pace of change in the way people work, live and socialise is accelerating. This ‘lifestyle’ shift is
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,
wellness is now part of the future direction of Creative Cardiff the modal split is expected to be 60:40.
Council has stated it will aim to have its resident numbers will have increased by a
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 a reputation as a ‘Tech Hub’ begin to
alternative fuel by 2022, and its heavy in people is proving a catalyst to drive change
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
already outlined a plan to ban new sales of
Employment and residential development
agenda and the pressure on public services. infrastructure in the very near future.
battle for talent. by 30% in just the past 10 years, with the is escalating and changing the shape of the
Walk-in surgeries, physiotherapy and the 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
economy rising to over £600m a year.
Hybrids and electric vehicles will be the long 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 past decade. Its resident population has regeneration of St Marys Street and Mill
by more physical or structural changes such UK’s new car market. Car charging points
able to benefit from bank funding and an influx grown by 10% since 2008 making it one of Lane as a Leisure Quarter. Pedestrian links
as quiet zones, creative spaces and are highlighted as a particular restricting
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 drive people towards The Hayes and St
amount of any region. Nonetheless, Cardiff this period. By 2028, forecasts indicate that
Education is another growth area, with the investment from £50k to £2m. David’s Shopping Centre. A career
corporate university gaining favour and structure is being developed, with the
The launches of Cyber Wales and Tech Wales
dedicated areas and resources for continual strong academic base of the city supporting
will enable further growth by bringing together
learning. With the pace of change in the the next wave of talent to employers.
businesses with universities and the public
business world quickening, both
sector. Cardiff has also been identified as How people are housed is also an example
development of the workforce and reskilling
one of eleven UK regional hubs that form the of change. Growth in PRS in the UK is
will rise in importance in order for firms
backbone of a national network of digital underpinning the development of purpose
to stay competitive. Lifelong learning
excellence. Local real estate development built rental blocks. The BTR sector in Cardiff
seemingly offers a defined career while
will, in addition, escalate the pace of growth. is at an early phase, but its growth could
shaping the employees skills to the best
For example, the Brains Brewery site at enable increasing numbers of renters to live in
benefit of the company.
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 15COMMERCIAL RESEARCH
Will Matthews
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Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide
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1ST EDITION
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The global perspective on prime property and investment
)
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THE 2018 REPORT
CLASH OF
THE TITANS
Leah Mullin
Next wave technology
Associate
THE WEALTH REPORT 2018
and the productive
workplace
MAKING THE
RIGHT IMPACT THE FUTURE
Lessons from
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OF REAL ESTATE
THE TRENDS SHAPING
40 LEADING CITIES +44 29 2044 0138
ELON leah.mullin@knightfrank.com
SPACE
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Findings from
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TRAINS, R O CKETS
ACTIVE
& S OL AR ENER GY CAPITAL
G LO B A L C I T I E S
KNIGHTFRANK.COM/GLOBALCITIES
THE REPORT 2018
2018
NGKF.COM/GLOBALCITIES 4th Edition 12th Edition
Your Space Global Cities Report The Wealth Report Active Capital:
– 2018 – 2018 – 2018 The Report – 2018
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