Despite its rather diminutive size compared with other UK cities, Cambridge has not let a lack of stature get in its way. Despite having more than 1.26 million sq ft of office space currently under construction, including Astra Zeneca’s new campus of 850,000 sq ft, only 208,000 sq ft remains available to let as occupiers scramble for premium stock in both the city centre and the parks.

Savills has calculated that at present there is more than 33 sq ft of new office development per employee within the city. With a population of just over 136,000, that’s no mean feat. The scale of development becomes even more apparent when you compare it to significantly larger locations such as Manchester and Birmingham, where there is just 7 sq ft of development per employee. 

So why is Cambridge’s finger firmly on the speculative development button compared to other regions? Many developers have erred on the side of caution in recent years, especially as we remain uncertain about what’s to come post Brexit, but with demand increasingly strong, it isn't a question of too much, but rather is there enough?

The recently completed Maurice Wilkes Building, pictured above, is a perfect example of this. The 65,000 sq ft speculative office building on St John’s Innovation Park, was pre-let ahead of completion to companies including PwC, Darktrace, and Mewburn Ellis. Now, with no additional space available on the park, talk about a second phase of development is already underway.

For many occupiers there is no UK alternative. With intense competition for some of the brightest minds in the world, the race for talent from R&D and tech occupiers is what is driving this level of development. Ultimately, this is where businesses need to be in order to compete.

While Cambridge is globally renowned, it remains constrained by factors including infrastructure and the rising cost of living. Therefore, in order to remain at the helm, it needs to be able to provide state of the art Grade A stock to entice international occupiers that could take their business elsewhere, namely to key international R&D hubs in places like the US and the Far East, if their requirements cannot be met.

Now is the time to be speculatively developing, especially while interest rates remain low and money is available from funds and institutions looking to invest in Cambridge. As the age old adage goes: ‘build it and they will come’.

Further information

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