Take-up of business space in the Cambridge area reached an all time high in 2011, according to new statistics from Bidwells.

Office take-up was up from 361,000 sq ft in 2010 to 475,000 sq ft in 2011, with signs that demand is set to continue well into 2012. In addition to offices, laboratory take-up totalled 159,000 sq ft for the year, a three-fold increase on 2010 levels.

Agency surveyor, Michelle Cantwell said the levels of take-up have not been seen in the city for years: “There have been a number of large transactions this year including 52,000 sq ft for Mills & Reeve at Botanic House, 44,000 sq ft for Jagex at 220 Cambridge Science Park and 32,000 sq ft for Booking.com at the Westbrook Centre.”

The office market saw an especially strong finish to 2011 with a myriad of deals in December including 15,500 sq ft to Spiral at 101 Cambridge Science Park, 10,600 sq ft to Hawkins, also on the Science Park, 16,500 sq ft to Velocix at the former Nokia Building in Milton, 8,000 sq ft to Fahy Gurteen at Cambridge Research Park and 6,400 sq ft to Spire Medical at Vision Park, Histon.

Other deals included Bidwells acquisition on behalf of a client of the 509 Coldhams Lane investment let to Carl Zeiss (15,600 sq ft).

Bidwells was involved either solely or as joint agents in 71 per cent of the total number of office and laboratory transactions last year.

Whilst it was a good year for offices and labs, industrial take-up for the Cambridge area was down slightly on 2010 figures with transactions totalling 244,000 sq ft, compared with 303,000 sq ft in 2010. The majority of this take-up occurred in the first half of 2011.

Russell Catley, partner at Bidwells, said: “Industrial take-up in the Cambridge area fell away in the second half of 2011 due to a combination of a lack of available good quality accommodation and a slight softening of demand.

“Our acquisition of the five-acre former Rotortech site at Bourn on behalf of the David Ball Group and the letting of 11,000 sq ft to JV Trading at Dales Manor, Sawston were two of the more notable transactions in the second half of the year, as well as the investment sale of Beadle Industrial Estate for over £3m.”

So what’s in store for 2012? Despite the negative economic news in the UK and the problems in Europe, the Cambridge office and laboratory market should remain buoyant.

Bidwells Databook statistics suggest there is currently over 1m sq ft of outstanding office and laboratory requirements much of which stems from the burgeoning R & D, high tech and biotechnology sectors for which the city is famous.

On the supply side there is only around 875,000 sq ft of new or good second hand space, therefore providing only 10 months’ worth of stock. This will mean there will be upward pressure on rents for well located offices in the city and the business parks on the immediate periphery.

Bidwells cannot see widespread speculative development to re-balance the supply-demand equation due to the lack of development finance but is beginning to see the emergence of the pre-let market. Microsoft’s 80,000 sq ft in Station Road is one example and Bidwells foresee further office pre-lets to satisfy larger requirements of over 30,000 sq ft where opportunities exist such as CB1, Cambridge Science Park, Capital Park and the Biomedical Campus.

The industrial market in the Cambridge area in 2012 will be less dynamic than the office segment. There will continue to be a shortage of good quality available units but the negative economic situation has already had a noticeable effect on demand.

Bidwells can see two areas of the industrial market that will offer more encouragement. Firstly, there will continue to be requirements in the sub-5,000 sq ft bracket to service the relatively prosperous local market. Demand and rents for city estates such as Clifton Road should hold up well.

Secondly, and looking at a more regional/national level, Bidwells expects demand for large warehouses (ie over 100,000 sq ft) to hold up as the major retailers, supermarkets and internet retailers continue to require more space or rationalise their existing storage network. Again, there is a general shortage of good quality available warehousing space in the south east and main arterial routes including the M25, M1, A1 and A14.

Speculative development in the eastern region is unlikely and requirements will increasingly be satisfied by large land sales or pre-lettings. Bidwells is seeing the early signs of this at Roxhill’s Gateway Peterborough, a warehouse and distribution park which has consent for five million sq ft of ‘big shed’ space, where a number of negotiations are progressing for buildings of more than 200,000 sq ft. Gateway Peterborough is a 240 acre site adjacent to the A1(M) junction 17.

• PHOTOGRAPH SHOWS: Michelle Cantwell