Cardiff is set to grow and become more upmarket, says a new report from property agents Stephenson and Alexander.
The report called A Capital Nightlife: The future of Cardiff city centre's licensed property market, reveals that the opening of the new Millennium Stadium has brought an explosion of licensed premises in the Welsh capital. According to the agent the city boasts 800,000sq ft of licensed premises, 200,000sq ft of which is currently vacant.
It has a two-tier market, with larger premises such as Regent Inns' Walkabout and Scottish & Newcastle Retail's The Square as well as the smaller city centre or themed outlets.
The larger premises are in excess of 6,000 to 7,000sq ft and are turnover in excess of £2m a year, it says.
But the market is still evolving says Stephenson and Alexander and while Cardiff currently caters to a mostly wet-led trade there will be an influx of restaurants and branded operations.
The Old Brewery Quarter, a mixed-use development with residential, bars and offices, is starting to take off and there is further potential for Cardiff to develop.
While some people are paying low rents in relation to turnover, other fringe locations off the main circuit are paying similar levels of rent but not achieving comparable figures.
The company predicts that these operators may need to renegotiate their rental levels or they may be forced to shut down. But some operators are able to produce sustainable profit levels on 6,000sq ft sites with £100,000 per annum rents. However, the report suggests that the average turnover and net profit per square foot at £300 puts the city on a par with Manchester and Leeds.
Peter Clarke, associate partner at Stephenson and Alexander, said: "The people we are seeing coming into the market are slightly better quality operators appealing to the 30 plus market."
Pictured: Isit? in Cardiff, has reopened following a refurbishment by Wales' largest independent brewer, SA Brain