Bidwells launched its set of Q2 figures today ( the full story is here for EGi subscribers). It's the third set of Cambridge Q2s we've received. And while we wouldn't normally put up all three, given the dispute over earlier figures and claims the city is suffering its worst quarter for over a decade, we'd like you to make your own mind up.
Bidwells reported that Cambridge offices take up rose 25% this quarter compared to Q1*, but the market was only saved by a raft of small deals that kept the city afloat. In stark contrast to last year, says Saul Western, the firm's partner in investment who has overall responsibility for its research, there were no whoppers deals like Microsoft or Mills and Reeve.
Deals to Mott MacDonald and Spicers are on the horizon but they are likely to land in Q3 or probably beyond in Mott MacDonald's case.
It also reported on Norwich, Ipswich and Cambridge lab markets. You can see the full set of figures here:
The big issue is now the supply squeeze. This is hardly unique to the East of England but Saul now reckons there's actually evidence that the developer moratorium is actually hurting the market. For example, sub-20,000 sq ft in both the Cambridge and Milton Keynes market demand far outstrips supply. The flip side of this is in larger size brackets the reverse is true. And in Norwich and Chelmsford, supply still outstrips demand in virtually all the size brackets.
This could mean, in these isolated cases, that the market is very quickly going to turn to a landlords market with a tightening on terms and some hikes in rents. With the bargain hunting over, it will be interesting to see just how many of the requirements this sends running for the hills.
*Incidentally, in our previous, completely unscientific, untested and unaudited poll 88% of you (out of a 144 votes) said they thought take-up in Q2 was 106, 000 sq ft.