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Although office demand was subdued by the recession, recent months have seen a spate of new requirements which are set to boost take-up levels for the second half of 2010. The resurgence in demand is being led by the technology sector with the likes of Microsoft, Broadcom, Dr Reddy’s and Qualcomm all in the process of acquiring new properties.
In addition, Aixtron recently took an additional 15,000 sq ft of offices at Trinity Court, Buckingway Business Park near Swavesey (see image on this page) The City Centre and business parks north of Cambridge continue to attract the majority of demand, leaving the availability of quality offices in short supply.
Prime rents in the City have risen to around £28 per sq ft per annum and are expected to increase further next year with the delivery of the first new office development for around twenty years. Botanic House, at the junction of Hills Road and Station Road, will offer 50,000 sq ft of Grade A offices over seven storeys. Along with the proposed CB1 development, this will help alleviate the pent up demand for quality accommodation in the station area.
Supply of secondary accommodation, on the other hand, remains more plentiful leading to a softening of rents for this type of stock. Landlords are having to take a proactive approach in the letting of their properties, either through refurbishing their buildings, offering flexible leases or structuring attractive incentive packages.
In summary, the outlook for the Cambridge office market is much brighter than it has been for a number of years. It remains to be seen how the Government’s autumn spending cuts will impact on the Cambridge market given its high level of public sector employment. In the meantime, however, the technology sector appears set to continue driving the market.
Positive signs for Cambridge offices
There are signs that the Cambridge office market is gaining momentum as we begin to emerge from the economic downturn, reports Ben Green. This is reflected by an increase in occupier demand, rising rents for prime accommodation and new speculative development.Although office demand was subdued by the recession, recent months have seen a spate of new requirements which are set to boost take-up levels for the second half of 2010. The resurgence in demand is being led by the technology sector with the likes of Microsoft, Broadcom, Dr Reddy’s and Qualcomm all in the process of acquiring new properties.
In addition, Aixtron recently took an additional 15,000 sq ft of offices at Trinity Court, Buckingway Business Park near Swavesey (see image on this page) The City Centre and business parks north of Cambridge continue to attract the majority of demand, leaving the availability of quality offices in short supply.
Prime rents in the City have risen to around £28 per sq ft per annum and are expected to increase further next year with the delivery of the first new office development for around twenty years. Botanic House, at the junction of Hills Road and Station Road, will offer 50,000 sq ft of Grade A offices over seven storeys. Along with the proposed CB1 development, this will help alleviate the pent up demand for quality accommodation in the station area.
Supply of secondary accommodation, on the other hand, remains more plentiful leading to a softening of rents for this type of stock. Landlords are having to take a proactive approach in the letting of their properties, either through refurbishing their buildings, offering flexible leases or structuring attractive incentive packages.
In summary, the outlook for the Cambridge office market is much brighter than it has been for a number of years. It remains to be seen how the Government’s autumn spending cuts will impact on the Cambridge market given its high level of public sector employment. In the meantime, however, the technology sector appears set to continue driving the market.
