Deloitte considering new HQ in Cardiff

Deloitte currently operates from three sites in Cardiff including 5 Callaghan Square.

Professional advisory firm Deloitte is considering moving to a new headquarters building in Cardiff. The firm, which employs 1,700 in the city, is undertaking a review of its property requirements – set against its net zero targets and wider adoption of hybrid working practices since the pandemic.

The Cardiff office of property advisory firm Savills is advising the firm on its property strategy, with one outcome potentially bringing all its operations under one roof, which would require around 40,000 sq ft.

Leases on its three existing office sites all expire in early to mid 2025. Its general practice team is located in 19,000 sq ft at the 5 Callaghan Square office building in the city centre. Its delivery team also occupies 44,000 sq ft at the Fusion Point Two office building, also in the city centre.

The firm, through its delivery team, did operate out of around 40,000 sq ft of space at the 6 Park Street building close to Cardiff Central Station. However, at the start of the pandemic it mothballed the site.

While it could opt for new space, it could decide to maintain its current operational space on new leases. There is also an option to take new space and keep its general practice team located at 5 Callaghan Square. This could see the firm taking on 20,000 sq ft of new space, at a location like the L&G owned Hodge House office building opposite the Principality Stadium where the landlord is investing in a next phase of refurbishment.

If Deloitte opted for a single new HQ building there are a number of, if limited, options.

The city centre 110,000 sq ft speculative John Street office scheme, from Cardiff-based property developer, JR Smart, is being marketed at £30 to £33 per sq ft.

The building has been linked to Lloyds, with a move from its nearby 140,000 sq ft William House building location. However, market speculation is that the financial services company is now expected to extend its occupancy at St William House with landlord Schroders under a new lease.

An expected exit by vehicle financing company, Motonovo Finance from its current offices at the 1 Central Square building, could provide Deloitte with an option to take on vacated space in the building. One Central Square forms part of the wider city centre Central Square office, residential and retail scheme.

Rival professional advisory PwC has though identified the Motonovo space for a proposed new HQ operation of its own. However, until a deal is struck it could leave room for Deloitte to come in with a more compelling offer.

Motonovo in turn has been linked to occupier a new smaller office presence in the city – while maintaining staffing levels – by taking around 20,000 sq ft at the nearby 2 Central Square office scheme from law firm Hugh James.

The legal firm, again due to hybrid working, is seeking to sublet two floors, which provide around 40,000 sq ft in the building. It has already attracted wealth management firm Brewin Dolphin to take on a small element. Hugh James, which is tied into a long-term lease, will continue to operate from around 60,000 sq ft of space in the building.

Another option for a new Deloitte HQ operation is at One Callaghan Square. Following a £8m refurbishment some 50,000 sq ft of grade A space has been brought to market by Knight Frank on behalf of Capital Trust, which manages the property asset for Middle Eastern investors.

The space has been made available after law firm Eversheds Sutherland opted to reduce its presence in the building – again due to hybrid working patterns.

While not ruled out, it is unlikely that Deloitte would look to return to 6 Park Street.

In a statement Deloitte said “We continuously review options for all of our real estate in line with lease renewals and our net zero targets. Our commitment to clients, our 1,700 staff in Cardiff and the wider community, as well as our investment and presence in Cardiff, remains unchanged.”

Last year financial services firm L&G also brought its operations in the city under one roof at the Interchange scheme, which forms part of the wider Capital Square development. It has taken 120,000 sq ft of space in the development, which will also provide a new bus station city for the city, operated by Transport for Wales, and more than 300 built to rent apartments from L&G Homes.

It was previously located at offices in the city at Brunel House and Knox Court. The offices are serving 2,200 staff on a hybrid working basis.