Signs of recovery in Cambs commercial property market

DEMAND for office space in Cambridgeshire is starting to pick up, according to property consultants Lambert Smith Hampton.

DEMAND for office space in Cambridgeshire is starting to pick up, according to property consultants Lambert Smith Hampton.

They say the Cambridge office market is witnessing the first signs of recovery as occupier demand increases and prime rental values rise in the city centre.

Andrew McGahey, head of LSH’s Cambridge office, said: “Prime rental values have remained strong in Cambridge’s city centre and stable out of town. This is due to a shortage of Grade A space, which stands at 38 per cent of the one million sq ft of space that is available.”

But he added a cautious warning: “The imbalance between supply and demand could spell trouble ahead, particularly given the severe lack of development which took place throughout 2009. The market will continue to recover as long as vacant second-hand office space is refurbished to meet the requirements of the next generation of occupiers, rather than allowing the market to stall while brand new Grade A space is being constructed.”

LSH has evaluated 37 locations’ activity ratios as a guide to how vibrant each location is in an average year. Cambridge is ranked as the third most active market.

Concluding Andrew said: “Cambridge’s buoyancy is as a result of an influx of new economy and biotech business with the growth of science parks surrounding the university.”

INFORMATION: The LSH report is available through www.lsh.co.uk