Future Office Demand in Cambridge

Savills has just published a report on the Cambridge market. It reveals that 262,000 sq ft of office and laboratory space was let in the first half of 2017. This includes major deals to Amazon, Heptares and Astex Pharmaceuticals.

Metropolis has recently reported on 30 major planned relocations in Cambridge, including PWC’s pre-let at Station Square, CIE’s huge relocation and a consolidation by Citrix. The Maurice Wilkes headquarters building has a further floor under offer.

In recent years, annual office and laboratory space take-up has reached 620,000 sq ft. Demand is being driven by inward investing and expanding global R&D businesses. With an additional 2,200 office- and laboratory-based jobs forecast over the next five years, some 300,000 sq ft of additional office space is required.

Cambridge’s ability to attract multinational office and lab occupiers in recent years has allowed it to compete with other global cities as a biosciences and pharmaceutical hub.

Recently, £40 million was invested in the cancer treatment firm Bicycle Therapeutics, at Babraham. Of the 10 largest biotech companies in Boston, USA, eight have a Cambridge UK presence.

Savills say that over the next three years, around two million sq ft of office and laboratory developments will be delivered in the Cambridge market. However, only 385,000 sq ft of this is speculative, with the majority lined up for local occupiers. The bulk of speculative space is scheduled to deliver during 2019.

Biomed Realty is developing 108,000 sq ft of speculative grow-on space at Babraham, set to complete during 2019, while more space is also planned at Granta Park. The Bradfield Centre, currently under construction in Cambridge Science Park, will provide 40,000 sq ft of space.

The outlook for the Cambridge office market appears to be continued expansion. Recent announcements and requirements tracked by Metropolis have included growth by the likes of AstraZeneca, Abcam, ARM, Open Cloud, Cambridge Epigenetix, Jellycat, Marshall Aerospace,  CyanConnode and Burall InfoSmart.

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Cardiff on the Rise & Merry Christmas

A recent report from property consultant Savills highlighted the upsurge in office demand in Cardiff and forecast that rents would reach £25 per sq ft in 2016.

The report concluded that total take-up at the end of Q3 stood at nearly 300,000 sq ft (27,860 sq m) and with the last two months registering significant prelets, including the 150,000 sq ft letting at Central Square to the BBC and Public Health Wales pre-letting 4,645 sq m (50,000 sq ft) of new offices on four floors at the under construction 2 Cathedral Quarter; the annual take-up total will reach 600,000 sq ft a 10% increase on 2014 and 20% up on the ten year average.

Earlier in the year, Cardiff saw major moves from Baccalaureate Organisation taking 48,500 sq ft and SSE taking 46,851
at Cardiff Gate Business Park.

Savills predict that One Central Square and 2 Capital Quarter buildings, could be fully let by early 2016. Therefore the main schemes in the pipeline are refurbishments including 50,900sq ft at St Patricks House, 35,000 sq ft at 2 Kingsway and 16,953 sq ft at Haywood House North on Dumfries Place,.

Metropolis is tracking over a dozen medium or large companies searching for office space in Cardiff.

Merry Christmas and a Happy New Year to all Metropolis blog readers from all the staff at Metropolis.

Cardiff take-up doubles

Savills latest Cardiff office market report, reveals that office lettings in 2014 are up 102% on the same period in 2013 reaching 250,000 sq ft by mid year and surpassing the 300,000 sq ft let in 2013 by the end of Q3 2014.

There are several requirements over 20,000 sq ft including Geldards, PWC and Blake Morgan which, could further boost the take-up figure over the next year. The recently announced 150,000 sq ft BBC deal could mean that 2014 transactions could reach 500,000 sq ft, which is 69% up on last year’s figures.

Recent large office transactions over 2,323 sq m (25,000 sq ft) include International Baccalaureate Organisation taking 4,506 sq m (48,500 sq ft) at Cardiff Gate and Welsh Health Estate Shared Services taking 3,670 sq m (39,500 sq ft) at Companies House. This trend is set to continue with a number of larger recent deals in Q3 reported on Metropolis including Velindre NHS Trust for 3,362 sq m (36,200 sq ft), Finance Wales for 2,044 sq m (22,000 sq ft) and Cunningham Lindsey for 20,000 sq ft (1,858 sq m).

On the supply side, the City of Cardiff Council and Rightacres Property have revealed details of their proposed Foster + Partners-designed masterplan for the regeneration of Central Square in Cardiff. The plan includes more than 1m sq ft of office, retail and residential buildings around a new civic square. The new BBC Wales HQ will anchor the scheme which has also been designed by Foster + Partners and is scheduled for completion in 2017. There will be also be a further 46,500 sq m (500,000 sq ft) of speculative office space.

Metropolis is about to publish its Q3 2014 regional office market report for current and forthcoming subscribers.