IN DEPTH: Chinese investors are eyeing Cambridge opportunities as office yields in the city are expected to dip below 5% in the next 18 months.
With the Fen city market booming, an increasing number of foreign investors are being thwarted by a lack of stock, especially large assets.
It is not just offices that are getting investors interested. Market observers are watching what sort of buyers are attracted to the Grafton Centre (pictured above), which is on the market for £92m – a rare large lot size for the city.
With supply across all sectors shrinking and rents expected to rise in most areas, the fundamentals for investors are looking attractive.
The city’s occupier market continues to heat up, with three floors at One the Square, the 130,000 sq ft speculative office development at Brookgate’s CB1 scheme in Cambridge (pictured above), close to being signed. The deal could signal higher rents for the remaining space at the scheme, nudging them up from £35 per sq ft now to £36.50 this time next year, and provide momentum for the next phase of development.
Click below for a full in-depth analysis of the Cambridge’s office market and to find out why foreign investors are keen to buy in the city.
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