Bidwells research shows improving industrial market

Bidwells latest Databook research published this month shows the industrial market in the Cambridge area has improved noticeably in the last 6-9 months. Russell Catley, Head of Industrial Agency at Bidwells in Cambridge provides an interesting update on market trends, and most importantly, what will happen to the market over the next 12 months.

"Demand at the end of 2009 was 25% up from 6 months earlier, particularly for units less than 10,000 sq ft.  Availability of industrial units has remained steady at 7% of total stock throughout 2009 largely due to no new speculative development and developers/landlords being realistic with their pricing.

"The knock on effect has been that take up in 2009 increased to 230,000 sq ft in 2009 from a low of around 200,000 sq ft in 2008. The pick up in the market took place from mid 2009 and the majority of the take up was felt in the final six months of last year.

"Our industrial team has experienced a busy few months with the final four units sold at Atria Court Papworth, a 48,000 sq ft unit in Bar Hill let to ASD Metal Services, a 17,000 sq ft letting at Beadle Industrial Estate, two units sold at Buckingway Business Park Swavesey, and a 13,000 sq ft unit sold on the former Plasmon site in Melbourn.

"So what for the industrial market in 2010? Overall, availability is relatively low and of those units that are available, a decreasing amount is new or good quality. Our view is that rents for older stock that are hit hardest by the rates revaluation from April will diverge from the prime modern stock that should remain at around £8-£10 per sq ft in the City.

"Whilst requirements for units over 20,000 sq ft are few and far between, available properties are in short supply. We therefore see more pressure on occupiers to consider bespoke buildings on development land, especially where industrial occupiers are sitting on prime re-development sites."


For further information please contact Russell Catley at Bidwells on 01223 559183 or email.