Investment in the Cambridge office and laboratory property market reached a record of over £1 billion last year - more than seven times the five-year average - driven by expanding science and tech firms, shortages of space and the prospect of growing rents.
According to Savills, overseas investors accounted for 52 per cent of investment. Notable deals included BioMed’s acquiring two development sites at Cambridge International Technology Park and Granta Park for a combined £240 million. Total take-up in 2021 was up 53 per cent at just under 700,000 sq ft which included US streaming company Roku taking over 116,000 sq ft at Cambridge Science Park.
James Emans, director at the investment team at Savills, said: “… We estimate there is over £10 billion of live capital looking to be deployed across the Arc, and with very limited standing stock, many are prepared to undertake new development. Given how fast moving both the occupational and investment markets currently are, we have been delighted to be able to advise a wide range of clients across a variety of lot sizes and expect transactional activity across the region to be sustained in 2022.” The agent expects take-up will be lower in 2022 due to limited stock; the vacancy rate for office space is around 9.5 per cent and virtually zero for lab space. Rents are expected to continue to increase and are set to exceed £50 per sq ft for offices by the second quarter.
