The demolition of an existing building on Station Road, Cambridge ahead of a new 7,153 sq.metres (77,000 sq.ft.) building being developed by Brookgate for Microsoft Research is a symbol for this thriving university town.
Apart from anything else, it is such a prominent site that it casts a spell over the area, where there is already some refurbishment occurring. On top of this it is the first new office block in Cambridge for 25 years and the rent of £317.42 a sq.metre (£29.50 a sq.ft.) beats most parts of the UK apart from central London. Underlining the force of the scheme is that Orchard Street Investment Management has bought it for £37 million. Orchard Street’s Gary Felce added to the arguments for Cambridge by saying: “It sets a new tone and standard for the next wave of development to follow.” The student blocks, which are part of the scheme, have also been sold in a £40 million deal with LaSalle Investment Management.
An upbeat view of the market comes from Duncan Quig of Lambert Smith Hampton who points to “the imbalance between demand and supply and the increasing rental tone for offices which is allowing speculative construction.” An example of this is Pace Investments’ 4,831 sq.metres (52,000 sq.ft.) Botanic House, Hills Road where rents could touch £349.70 a sq.metre (£32.50 a sq.ft.) when it is completed in a year’s time. But the top rent could be achieved before then because Pace is apparently negotiating for floor by floor lettings. In any case there are potential
occupiers seeking new space, such as the law firm Mills & Reeve.
No comments:
Post a Comment