Cambridge Office Market

Savills has just published its September 2018 report on the Cambridge office market.

Savills say that the majority of take-up in Cambridge, whether for offices and/or laboratories, has occurred in the city centre (Zone 1) around the central station and Hills Road. This area has accounted for 38% of take-up by square footage up to summer 2018.

Available offices total 100,000 sq. ft. of existing stock in this area currently. At current levels of demand Cambridge has less than one years’ supply. The city centre market has around 156,000 sq. ft. under construction, of which 30,372 sq. ft. is pre-let. Developer confidence is growing outside of the city centre. St Johns College and Turnstone recently completed the 65,000 sq ft Maurice Wilkes Building at St John’s Innovation Park which was let to seven occupiers prior to practical completion. Biomed Realty is speculatively developing 108,000 sq. ft. of laboratory space at Babraham Research Park across two new buildings and Churchmanor Estates are speculatively developing 40,000 sq ft. In addition the Howard Group are to speculatively construct over 60,000 sq ft of office/R&D space at Pampisford. Savills expect record rents to be achieved in the city centre at 50 & 60 Station Road.

Astra Zeneca is soon to complete its new campus of 850,000 sq ft. Samsung has recently committed to opening a new AI research hub in Cambridge. Microsoft also have a research base covering AI at 21 Station Road.  Darktrace is moving to The Maurice Wilkes’ Building at St John’s Innovation Park. Amazon took 72,289 sq ft at One Station Square, CB1, while Astex Pharmaceuticals took 42,688 sq ft at Cambridge Science Park. Also at Cambridge Science Park, in Q1, Huawei acquired 11,500 sq ft at Building 101 for £29.50 psf. Savills is also aware of 100,000 sq. ft. of requirements from serviced office operators and envisage stronger demand from this sector in the future.

Metropolis is tracking around 40 Cambridge office moves and requirements.

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