• Take-up by the end of Q3 2018 in the Cambridge reached 373,000 sq ft despite a subdued start of the year for transactional activity. Notable deals in 2018 include ARM leasing 47,617 sq ft at Eastbrook and Carl Zeiss leasing 43,332 sq ft at 1030 Cambourne Business Park.

• There has been a general downward trend in supply levels in the last five years and strong demand has resulted in supply falling. There is approximately 647,000 sq ft available which is 13% below the long term average of 745,000 sq ft. New development has not resulted in supply increasing, Brookgate’s speculative scheme One Station Square (120,000 sq ft) was practically fully let prior to practical completion.

• Developer confidence in the market is strong with 399,000 sq ft currently under construction, there is however significant occupier demand with an estimated 50% pre-let or under offer to occupiers. The new development will set new rental tones in the Cambridge market with record rents expected to be achieved at Brookgate’s 50 & 60 Station Road. We envisage prime rents exceeding £45.00 per sq ft by the end of 2020.

• The life science and technology sectors are growing in Cambridge and we envisage strong demand from these sectors going forward. The artificial intelligence (AI) technology development sector is growing quickly and firms are expanding at an exponential rate. Samsung have recently committed to opening a new AI research hub in Cambridge, which will add to the already growing cluster of mature and start-up AI developers. Microsoft also have a research base covering AI at 21 Station Road, within the city centre. Darktrace and Prowler IO are newer cybersecurity AI companies who have expanded. Prowler IO have expanded their footprint by over five times in two years.

• Large corporates such as AstraZeneca and ARM Holdings have confirmed their long term real estate commitment to Cambridge following the Brexit vote. In addition Cambridge Assessment moved into their new purpose built 350,000 sq ft facility this year. Furthermore with limited reliance on the financial services sector, Cambridge is less exposed to any potential employment contractions arising from a potential hard Brexit.

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