The Cambridge technology cluster and new city centre business district are contributing to a 79-month high in UK commercial property activity, according to Savills.Savills Cambridge specialists say they are now seeing schemes shelved four years ago being resurrected. And nationally commercial property activity is 32 percentage points higher – back to the boom times pre-recession.
Martin Mills, director of project and building consultancy at Savills Cambridge, said: “Cambridge has seen a gradual build up of commercial projects throughout the year with a slight hiccup mid January through funding issues.
“Currently the construction market is very busy and order books are filling for next year already. We have yet to see spec build activity as most schemes have pre lets, especially retail schemes. We are working on some exciting resurrected projects which were postponed in 2009, but now with a different mix of commercial types.”
Savills UK says the stronger performance of the commercial property sector up to the end of October was supported by a return to growth in public commercial projects, while the pace of expansion in private commercial work reached a survey peak.
For the first time in over six years, all nine categories monitored by the survey recorded growth, led by private new build.
Panellists with the survey remained optimistic around commercial activity growth over the next three months. Evidence from commercial developers highlighted improved client confidence, easier access to funds, an upturn in the UK economy and stronger demand.
Cambridge, London and the South East have led the bounceback.
• PHOTOGRAPH SHOWS: Martin Mills, Savills Cambridge