Market snapshot

Office Market Pulse Cambridge Q1 2013

The Cambridge office market remains one of the UK's hot spots with record rental levels, increased demand - particularly for Science Park space, and the second highest Q1 take-up recorded in the last 10 years.

You can download a PDF version of this Cambridge Office Market Pulse, or to read and sign-up to receive Office Market Pulses from other UK centres, click here.

In this issue:

Cambridge office market off to a flying start

Q4 was the highest performing quarter in 2012, returning a total take-up of 136,327 sq ft. This success continued into Q1 2013 with take-up reaching 171,994 sq ft; the second highest Q1 take-up figure over the past 10 years. For a breakdown of take-up by location and size bracket click here.

A new rental level record has been achieved at Twenty Two Station Road, CB1, with the pre-letting of 44,150 sq ft to Mott McDonald at £32.50 per sq ft.

For the first time in eight consecutive quarters, tenant activity was led by the Professional Services sector, accounting for 40% of take-up. Take-up by the TMT and Pharmaceutical sectors amounted to 39% of Q1 take-up.

Demand levels increased significantly due, primarily, to AstraZeneca’s requirement for a new 650,000 sq ft HQ research and development campus.

Significant occupational transactions

Property Size  (sq ft) Landlord(s) Tenant Lease information
Twenty Two Station Road, Cambridge 44,150  Brookgate (funding to be agreed) Mott McDonald 

25 year lease with breaks at year 10, 15 and 20

£32.50 per sq ft, 7 months rent free

Former Perkin Elmer building, Bar Hill 33,679  Peterhouse Confidential  10 year lease with break after year 5
City House, Hills Road, Cambridge  10,795  Unex  Cantab Capital 

10 year lease with break after year 5

£25 per sq ft

Office availability falls by 12.3%

Availability in the Cambridge office market fell by 12.3% to 943,003 sq ft, reflecting the lowest level since 2011

The out of town market witnessed the lion’s share of take-up accounting for 58% or 76,625 sq ft.

Grade A availability fell by 8.7% to 238,388 sq ft with only 17,106 sq ft available in the town centre. However, the wholesale refurbishment of 90 Hills Road is due to reach practical completion imminently and will provide a much needed 9,030 sq ft of grade A space in the town centre.

For a breakdown of availability by location and size click here.

How did the investment market perform in Q1 2013

Total investment in Q1 2013 rose by 8% in comparison to the previous quarter, reaching £8.05bn. 

The average deal size reached a new high of £28m. 

This activity was despite investment in central London offices falling by 25% in Q1 2013.

What does this mean for the market? Find out in UKIT 2013 and read our predictions for the year ahead.


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