Tying in with the national surge in the take-up of office space, it has been highlighted by Savills that the Cambridge city centre has also seen a considerable increase in the amount of takeup over the last half year – this seen through the culmination of a number of smaller, 10,000 square foot space deals.
When looking to where Savills attributes this increase, the firm highlights the increased recognition seen from “technology” occupiers in the positive consequences of a central business district location; these locations then offering improved accessibility to local amenities, as well as transport links and further convenient facilities, such as for for cycling.
In fact, it has been reported that the take-up from “technology” occupiers actually managed to outgrow that of incubator space, specifically within key areas of interest for technology firms, such as innovation and business parks, with technology firms looking to grow their business into more centralised space. This sees a number of scientific and technology-led organisations such as Malin Life Sciences, Raspberry Pi, Microsoft, Astra Zeneca and Apple now with central business locations.
As demand has risen for space, so too has the supply of Grade A space dropped, with the market struggling to keep up with the demand. This has led to surges in rents for Cambridge (amongst other locations) as interested parties fight for the space still available. In fact, the rents reported for prime business parks hit £30 per square foot in certain areas of Cambridge, serving as a figure not too distant from the ever-high city-centre rents which now sit at around £35 per square foot.
Of course, with the recovering economy in hand, it has been seen that occupiers are now slightly less concerned with the price of premises, and instead more focused on finding the best possible space, with the best location.