Commercial rents to stall


01-08-2001

Astronomical commercial rents in Cambridge are set to stall with the slowdown in the technology sector.

The Royal Institute of Chartered Surveyors says growth has arrested in rents, proof that the media, telecoms and technology market is suffering.



But demand from the biotech and pharma sector remains strong, according to Robert Alston, a city surveyor.



The news reflects a national fall in demand for commercial property for the first time in two and half years.



The expectation is that a further fall will be registered when the current quarter is assessed.



However, business parks are reported to have held up well, with Huntingdonshire proving particularly resilient. Overall though, rents are easing, with only modest rises amid suggestions that leases will become shorter as the pendulum swings back in favour of the tenant.