Cambridge has the reputation as a leader in science, technology and business. But with a shortage of available commercial property
, will this pristine reputation be in tatters?
There is very little available office space and commercial properties available within a three-mile radius of Cambridge city centre, which is the most desirable location. Companies already positioned in this popular area have to put their expansion plans on hold if they want to keep their prime office location.
Landlords of commercial properties in Cambridge are deriving the benefits from the supply shortage as rents are at a rate of £30.40 per square foot, which is a record high in some areas. Commercial property experts have warned Cambridge that if they do not address the shortfall in available office space, it could jeopardise the city’s future as leader in enterprise and research, as Dick Wise, Head of Business Space put across, “The dangerous thing is Cambridge companies are global and there is a chance they will consider other space around the world.”
With available land limited, it does raise the question as to where new office spaces and commercial properties can actually be built. An example of this issue is at the Cambridge Science Park, where there is no land available for new buildings, so instead they are going to have to rebuild and refurbish existing original buildings. Mr Wise stated “They were in the process of creating 50,000 square feet of office space for a client, who cannot yet be named, by doing just this which will see them creating a three-storey building – subject to planning consent – in place of a single-storey structure.”
With many cities investing heavily in new available commercial space, it does look like Cambridge could be left behind as Will Mooney, who is responsible for marketing the Cambridge Business Park expressed, “We have had half a dozen new companies this year mainly taking 10,000 to 25,000 square feet on a 10-year lease. Nobody has developed anything of real quantum in Cambridge over the last three to four years.”
Cambridge City Council is fully aware of the issues of not having enough commercial properties available can do for such a high profile city. Previously their main focus was providing enough homes to cover the amount of jobs available. But now they have drawn up a document which shows a clear vision for Cambridge for the next 20 years. This document will highlight the commercial property needs and how to address the situation and is expected to be published next year, as Stephen Miles, Planning Policy and Economic Development Officer stated, “This does not mean we don’t have to meet the needs of business still and the new plan will balance all these needs.”
If the supply of available commercial property continues to follow this trend in Cambridge, many new businesses may be forced to look at other cities to plant their roots, which could have implications on the city’s future as a whole.
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