Bidwells LLP

The convergence between science and tech is increasingly evident in the Cambridge market with tech companies responsible for two-thirds of office take up in H1. Overall, 90% of office and lab lettings were by companies operating in the knowledge intensive sectors. The lab market remains cautious, but requirements for smaller floorplate space increased in H1, while several previously stalled, significantly larger transactions are now making progress. This will drive take up over the next couple of years as the high quality development schemes across the market come forward.

Milton Keynes' central location within the Arc and relative affordability make it an attractive base and the inflow of new companies into the city has offset the impact of downsizing by existing occupiers. Office take-up in the first half of 2024 was in line with the pre-pandemic average and the lack of new development means that availability is under control at 11.5%. Prime office rents are likely to hold steady this year, before seeing renewed growth in 2025.

The convergence of science and tech is reshaping key UK markets, with Cambridge and Oxford leading the charge. Download the Bidwells' databooks for detailed insights.

Availability in the Norwich office market fell again last year and prime rents rose. We believe that prime yields at 10.5% provide an attractive entry point for investors looking to deploy capital. Office take-up in Norwich in the first half of 2024 was in line with the long-term average. While financial and business services companies were relatively quiet, the gap was filled by occupiers in education, healthcare and off-shore wind. The limited amount of Grade A space and lack of new development is putting upward pressure on prime rents and we expect them to increase by 5% p.a. between mid-2024 and end-2029. Prime office yields in Norwich at 11% provide an attractive entry point for investors looking to deploy capital.