Cambridge office space performs well

Demand for Cambridge office space appears to be holding up well under the pressures of the credit crunch.

According to one of the local agents in that area, there have been recent requirements totaling over of 100,000 square feet. The interest has come from a range of different companies such as legal firms, public sector bodies, and IT businesses.

As you might imagine, the majority of requirements are for under 10,000 square feet, which is indicative of current market conditions. It is also believed that there is interest from serviced office providers establishing a greater presence in the city.

The city is said to have a long tradition of producing start up businesses, as bright young things emerge from the University’s colleges. For new businesses, serviced offices are ideal.   As with many other small to medium sized cities, there is a lack of grade A office space as companies who utilise this kind of space tend to opt for one of the major cities, e/g Birmingham, Manchester or more often than not London.

For a developer, investing in grade A office space in a provincial city is a higher risk if you cannot agree a pre let.  However if you can achieve good occupancy levels you will enjoy receiving the headline rent in that city.

Rental values in Cambridge range between £18 and £24 per square foot.