And the Cardiff Bay district is emerging as a new business district despite the continuing row over the construction of a new Welsh parliament there. The project was approved almost four years ago but work has not yet started and Richard Rogers' designs have been thrown out by the assembly.

ATIS Real Weatheralls director Peter White said: 'Cardiff Bay is now well established as a third dimension to the city's office market alongside the traditional city centre stock and business park accommodation.' Rents achieved in the Cardiff Bay area are now among the highest in the city with BT paying £20 ($29) per sf to lease PMG's Celtic Gateway development.

In the city's biggest deal of the year Lloyds TSB pre-let 105,000 sf in Rightacres Developments' St William House on Penarth Road. The deal accounted for more than one-fifth of the city's entire annual take-up. But despite strong letting activity vacancy levels remain at 11.01%, Weatheralls calculates.