Prime office rents in Cambridge set to break GBP50 per sq ft by the end of 2021, says Bidwells
Bidwells Summer 2021 Cambridgeshire report reveals that demand for office and laboratory space in Cambridge has had an intense investor interest over the last two years. Prime Office space rents have increased by 37.0 per cent over the past five years.
This supply of laboratory space in Cambridge continues to tighten with availability rate at a historic low of 2.8 per cent which is the lowest in seven years. At the end of H1 2021, there was a total of 82,000 sq ft of space on the market, with all but 9,800 sq ft under offer at the end of June.
Office and laboratory demand moved to its highest level since 2015, with a number of new larger requirements coming to the market. The overall demand at the end of H1 was 1.7 million sq ft which is an increase of 30 per cent since the end of last year and 45 per cent ahead of levels seen in mid 2020. Many new entrants are looking for larger spaces (over 50,000-plus sq ft).
A 103,000 sq ft laboratory building has secured detailed planning permission and should help to meet laboratory demand.
The first phase of the redevelopment of The Old Swiss laundry site on Cherry Hinton Road has been greeted with strong demand. The first two lettings, totalling 18,038 sq ft were agreed in earlier this year and a further 30,000 sq ft of speculative space will be delivered in H1 2022.
Investment activity in the Cambridge office and laboratory market has accelerated sharply in H1 2021, with a total of GBP314 million of transactions completing, compared to GBP221 million in the whole of the previous year.