Bidding war sends rent for new Ridgeons HQ rocketing 245 per cent
A Cambridge record industrial rent saw an original asking price of £6.75 per sq ft rocket to £16.50 per sq ft – a 245 per cent increase – in an off-market deal negotiated by Bidwells with building supplies specialist Ridgeons at Coldhams Business Park.
Bidwells acted for Orchard Street Investment Management in the blockbuster deal.
Coldhams Business Park is regarded as Cambridge’s premier industrial location.
The 25,000 sq ft unit became available through a surrender of the existing lease where the passing rent was £6.75 per sq ft. On the back of strong demand and a belief that the unit was substantially underpriced, Bidwells advised the client to take the unit back and approach known requirements. Following a ‘best bids’ process Ridgeons was selected and a deal concluded at £16.50 per sq ft.
Patrick Stanton, head of Bidwells Logistics and Industrial team said: “This deal demonstrates the continued strength of the Cambridge market. The significant lack of available stock is driving rents to unpredictable levels across all size ranges and sectors.
“The deal justifies our advice to the client to take the unit back with the confidence to move rents forward and take advantage of the buoyant market.”
William Rooke, partner at Carter Jonas who acted for Ridgeons added: “Our client had a specific trade counter requirement to relocate from its current site, which is being released for housing.
“Having searched the market for some time we are delighted to have secured a rarely available mid-size unit within the Cambridge boundary. This will become Ridgeons’ flagship Cambridge store when it opens following the fit-out towards the end of this year.”
The deal reflets trends highlighted by Bidwells in its latest Databook figures which says that individual rents in Cambridge are expected to rise more than nine per cent in 2017 as demand for the sector reaches new highs. Total requirements for industrial assets hit 1.9m in the first half of the year.
Currently there are no new units available. However, speculative development is taking place at Buckingway Business Park (155,000 sq ft), Cambridge South (120,000 sq ft) and Cambridge Research Park (75,000 sq ft).