Market snapshot

Office Market Pulse Cambridge Q4 2012

The Cambridge office market remained robust throughout 2012, bucking the trend of the wider UK markets. There is much to be positive about; headline rental levels will soon reach £32.00 per sq ft, take-up last year was on par with the five year average, and demand for high quality space has significantly increased.

In this issue:

Take-up on par with five year average

Total take-up in 2012 amounted to 458,644 sq ft, with a total of 136,327 sq ft in Q4 – the highest performing quarter of the year. This does not include a significant pre-letting in the CB1 area, which we understand will exchange early this year. For a breakdown of take-up by size bracket click here.

Despite the economic backdrop, total take-up for 2012 is on par with the previous five year average take-up level of 460,500 sq ft. For an annual comparison of take-up click here.

Technology Media and Telecommunications (TMT) and pharmaceutical occupiers increased their dominance of the market, accounting for 50.9% of transactions in 2012.

After four consecutive quarters of reducing levels of demand, we saw a 53.6% increase in Q4. There is currently a proliferation of agent-led requirements, reflecting the increasing importance of professional advice in a market with a lack of quality space, and where rental and lease terms continue to favour landlords.

Significant occupational transactions

Property Size Landlord(s)  Tenant/Purchaser  Lease information 
Cavendish House, Cambridge Business Park 22,247 sq ft Crown Estate Mathworks 10 year lease
£25.00 per sq ft

Building 2000,
Research Park

10,405 sq ft Threadneedle HME Clearcom 10 year lease
Broers Building,
West Cambridge Campus
5,868 sq ft Turnstone ICP London Five year lease £26.60 per sq ft


Increase in availability

Office supply increased by 137,062 sq ft in Q4, bringing total availability up to 1,074,652 sq ft; a result of an equal increase in availability across the town centre, out of town market and Science Parks.

Significantly, Francis House in the Central Business District is now available and extends to 34,923 sq ft.

For a detailed breakdown of availability click here.


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