Industrial Market Review

Cambridge industrial and logistics market review

The Cambridge industrial market remains dominated with secondary stock, and with continued demand for prime space, many occupiers are being forced to consider alternative options.

You can download a PDF version of this market review, or to read and sign-up to receive updates from other UK centres, click here.

In this issue:

Increase in transactions but total unit sizes down

  • Take-up in Cambridge and the surrounding area at the half year stage was 245,189 sq ft - a 56% decrease on the same point in 2012 when take-up reached 436,212 sq ft.
  • This decline was caused by a drop off in take-up in the big shed market – while the mid-box/smaller end held up well.
  • Despite this, the total number of deals in the first half of 2013 was 56; up on the half year figure in 2012 (46 transactions).
  • The largest transaction was the letting of Unit 4b, Cambridge Commercial Park (17,545 sq ft) to Conductive Inkjet Technology at £6.50 per sq ft.
  • Demand for units of less than 10,000 sq ft accounted for 87% of activity.

For a breakdown of Cambridge industrial take-up by size click here, or to view take-up by grade, click here.

Secondary stock dominates market

  • Supply in Cambridge and the surrounding area has increased by 3.5% in H1 to1,741,014 sq ft.
  • This is primarily due to Orchard Farm, Foxton and Unit 17-20 Greenfield, Royston coming to the market; providing 51,146 sq ft and 60,970 sq ft respectively.
  • Second-hand stock accounts for 91% of current supply, and 71% of this is made up of units of less than 10,000 sq ft.
  • The current lack of new build and good quality second-hand stock has led to the construction of the first speculative unit for three years at Evolution Business Park.
  • Occupiers looking for good quality space will have to either enter into build to suit agreements or carry out extensive refurbishment works on a suitable unit.

For a breakdown of Cambridge industrial supply by size click here, or to view supply by grade, click here.

What does the future have in store?

  • Demand is likely to continue to be driven by occupiers looking for prime space - particularly mid-tech and R&D occupiers.
  • Prime rents and headline rents for good secondary stock will remain stable with fewer incentives being offered due to lack of supply.
  • Incentive packages for poor secondary stock will continue to be good for occupiers due to over-supply. 
  • We expect further speculative development to be dependent on pre-letting part of the schemes.

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