Datapoint, which was recently released, is an annual review of the business space market in Cambridge, the reports key findings include:
Laboratory space:
Take up of space for 2021 was three times the level of the previous year, at 205,000 sqft
Rental levels have now reached £48.50 per sqft following significant deals throughout the sector
70 per cent of total take up took place at the Portway Building at Granta Park, following two significant leases to Altos and Bicycle Therapeutics
Supply is now zero, with no new space currently under construction
Offices:
Take up of office space throughout 2021 was 475,600 sq ft, up approximately 30 per cent on the previous year
Approximately 25 per cent of deals were to flexible office providers
New rental levels being reached for Cambridge and edge of town locations, with £37.50 per sqft achieved at Cambridge Science Park
Industrial:
Take up of industrial space was up 15 per cent in 2021 in comparison to 2020
Availability for industrial space in Cambridge and a 10-mile radius is currently at a record low of 215,000 sqft
There is no new or second-hand Grade A space currently available within the market
Rental levels are increasing due to sustained demand, with £16.50 now being achieved for city centre locations and £13.50 within a 10-mile radius
Speculative schemes due to complete in 2022 which ought to bring relief to the market
Michael Jones, Head of Commercial at Cheffins comments: “2021 was once again dominated by Coronavirus, but the underlying strength of Cambridge was demonstrated by the levels of activity seen with supply of new space being the main challenge across all sectors. This is particularly the case for appetite for Cambridge’s world-leading laboratory sector which performed stronger and faster than ever, with take up almost three times the level of 2020. The main concern, however, continues to be the lack of availability of laboratory space which, as demand continues to grow, is driving significant rental growth and is a property puzzle which needs to be solved to maintain Cambridge’s success in the longer term.
Just as tellingly, perhaps, is the way in which the office market is bouncing back with deals in this sector up approximately 30 per cent compared with the previous year. Again, supply for offices remains tight and, as confidence in the need for office space continues to grow, demand from both occupiers and serviced office providers is increasing. The situation is likely to be further exacerbated as the number of offices being considered for conversion and repositioning into life sciences spaces continues to grow at pace thanks to large-scale investment in this sector.
Lack of supply was also certainly the overriding theme within the industrial space. Availability currently stands at a record low throughout Cambridge and within a ten-mile radius and this has led to growth in values, however, the sector has been buoyed by significant investment which has helped to propel new schemes into action. A number of these new industrial developments are set to complete in 2022 and hopefully this ought to help ease the pressure on the current market.”
The full Datapoint report can be accessed at: https://www.cheffins.co.uk/about/news/view,datapoint-the-annual-roundup-of-the-business-space-market-is-now-available-to-download_889.htm