Cambridge office take-up in 2016 exceeded 500,000 sq ft for the fourth successive year, according to Bidwells.
The advisory firm said prime rents were now at a high of £37 per sq ft.
Office supply has fallen to the lowest level for 15 years and availability rates are down to just 8.5%, but requirements are at 1.1m sq ft.
The laboratories sector recorded its highest ever annual take-up at 288,000 sq ft.
The industrial market’s supply was at its lowest level on record, driving rents up to £11 per sq ft – 7.3% higher than at the end of 2015.
Will Heigham, head of office and R&D agency at Bidwells in Cambridge, said: “Our data highlights that confidence in the office and laboratory market in Cambridge remains unaffected by the referendum vote. At CB1, 50/60 Station Road (163,000 sq ft office block) is under construction. It is one of just a number of good news indicators for Cambridge which have been announced in recent months.
“Improvements to our transport networks will also have a positive impact, including the government announcement that it plans to reopen the Varsity Line rail link from Oxford to Cambridge. This is a vital link for the two cities, which are cornerstones of the Golden Triangle. In addition, the opening of the new Cambridge North railway station in May will provide a welcome gateway for businesses, especially those based in the city’s northern cluster.”
For Cambridge industrial, the major issue is supply, which has fallen to just 5% of total stock, of which 51% is rated as poor quality.
Russell Catley, head of industrial agency at Bidwells in Cambridge, said: “The lack of quality space is becoming the predominant issue for occupiers, because demand remains robust and the market has been largely unaffected by the sentiment following the referendum. Looking forward to 2017 we do expect an increase in prelets and pre-sales and we are seeing some limited speculative developments starting to take shape outside the city.”
• To send feedback, e-mail shekha.vyas@estatesgazette.com or tweet @ShekhaV or @estatesgazette
