Bidwells published offices & labs databooks
The convergence of science and tech is reshaping key UK markets, with Cambridge and Oxford leading the charge. In Cambridge, tech companies accounted for two-thirds of office take-up, while demand for smaller lab spaces is on the rise. Oxford saw a surge in office activity driven by life sciences and tech, with growing interest from multinational pharma firms. Meanwhile, Milton Keynes remains a stable choice for businesses, and Norfolk & Suffolk's limited office supply is pushing prime rents higher, creating attractive opportunities for investors. Keep reading for detailed insights shared by Bidwells.
Cambridge
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.
Download the Cambridge databook
Oxford
Knowledge intensive business were response for virtually all office and lab take up in Oxford in H1 2024. This was reflected in a marked upturn in activity in the office sector, driven by both life science and tech.
The lab market remains subdued, but H1 saw a recovery in fundraising which is starting to translate into increased spin-out and start-up demand. This, combined with a renewed interest from multi-national pharmaceutical companies should drive higher requirements in H2. This will be seen in take up over the coming years as new lab space is delivered in the historically undersupplied Oxford cluster.
Download the Oxford databook
M1 South
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.
Download the M1 South databook
Norfolk & Suffolk
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.
Download the Norfolk & Suffolk databook
