12/05/2023
News
The RICS has just published its latest quarterly UK Commercial Property Market Survey (Q1 2023), titled, ‘Headline occupier demand metric stabilises as the weaker trend in investor activity eases’.
In responding to the survey, Ben Green, Director, Cambridge office, reported that his agency team’s experience of the local market so far this year is broadly in line with the trends in the RICS Q1 survey.
Office & laboratory
In Cambridge, secondary offices are seeing limited demand, especially older stock with poor energy ratings. In contrast, prime offices are performing reasonably well.
We are seeing several office buildings, particularly on the city’s surrounding business parks, being repurposed for laboratory use to meet the high demand and lack of supply in this sector locally.
Industrial & industrial rents
There has seen a pick-up in demand in Q1. Historically, there has been limited development of new industrial units in Cambridge and this - plus lack of available older stock - is putting upwards pressure on rents in the sector.
In line with the general findings of the RICS survey, we anticipate industrial rents in the region will likely increase in the next 12 months.
Retail & vacancy rates
Unlike the UK wide picture of falling retail demand, Cambridge has seen a rise in enquiries in Q1 compared with Q4 2022.
This is, in part, attributed to Cambridge’s attraction as a tourist destination and the rise in visitor numbers and footfall.
As such, retail vacancy rates have fallen marginally and rents appear to have stabilised.
