Bidwells, which has just been named top of EGi’s Cambridge office market league table (2015) for the fifth year running and also EGi's H1 2015 Industrial League table for the East of England, has released its autumn Business Space Data Book, which takes an in-depth look at the three key market sectors across its region.
While the continued strength of the economy offers the promise of further growth over the next few years, the main issue is how Cambridge will cope with the unprecedented growth in business activity.
Headline figures for Cambridge include:
- Rents for prime offices is now £35 psf (to June 2015)
- More than one third of take up in the six month period was of grade A space (to June 2015)
- Prime rent for Cambridge Laboratories is £32.50 psf (to 2015)
- Industrial prime rental value is £10 psf in Cambridge (to 2015)
- Availability rate for industrial space in Cambridge stands at just 5%
- Availability rate for office space is at 10%
- The overall supply of grade A space in Cambridge is among the lowest in the Bidwells region, with just 5% of overall stock on the market being new build or refurbished accommodation.
Will Heigham, Head of Office Business Space, said: "The growth in occupational demand continues to put enormous pressure on the existing building stock.
"More than 170,000 sq ft of speculative schemes were under construction at the end of the first half of 2015, with 40,130 sq ft due to complete by the end of Q4.
"The largest new scheme is Brookgate's 130,000 sq ft city centre scheme One The Square at CB1, which is due to complete at the end of 2016.
"The past 12 months has seen a sea change in the Cambridge office and laboratory market, with take up moving to 1.1m sq ft over the year to June 2015.
"But there are a number of deals either under offer or in solicitors' hands and with demand remaining at record levels, all indications are that the activity levels will be maintained into next year."
The continued growth of Cambridge as a life science and technology hub has seen further commitment to the area by genomics giant Illumina, who has signed to take a 155,000 sq ft purpose built research facility at Granta Park.
Gilead has also committed to extend its occupation at the park after signing for a new 80,000 sq ft purpose built facility.
Dick Wise, Head of Business Space, added: "Work commenced on the new AstraZeneca facility at the Biomedical Campus, with the first stage involving 450,000 sq ft of office and laboratory floor space. Whilst demand has reduced due to the satisfaction of this requirement, the longer term effects will be seen over the coming months as suppliers look to gain a presence near to the pharmaceutical giant."
Bidwells' Autumn 2015 Business Space Data Book can be viewed here
The Bidwells' Business Space Data Book contains in depth features on the markets in Norfolk and Suffolk, M1 South (Milton Keynes and Northampton), London, Oxfordshire and Cambridgeshire.
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