The buoyant renewable energy sector around the Norfolk and Suffolk coast is attracting a growing number of new businesses and providing a boost to the wider property market in the area.
According to Bidwells business space data book, industrial availability rates across Norfolk and Suffolk fell to 7 per cent in the second half of 2014.
William Jones, of Bidwells’ Norwich commercial division, said: "The renewable energy sector in Great Yarmouth and Lowestoft has boosted activity throughout the Norfolk and Suffolk markets over the past few years, with a number of new companies moving into the area and taking space.”
"Over the past two years, 15 new businesses have been attracted by the benefits of the area's Enterprise Zone status, with occupiers looking further afield to satisfy their requirements. The shortage of suitable office space in the immediate area has caused occupiers to look beyond the local market.
"Availability for office space in Norwich has continued to reduce, falling below the 10 per cent mark for the first time in six years. Grade A supply is now down to 50,000 sq ft." ...Read more
Other signs of a strengthening property market in Norfolk and Suffolk are the first office pre let transaction in Norwich for more than five years and supply is down to a six year low in the Norwich office market. Prime office rents in the city are now £16.50 per sq ft and prime industrial rents £5.75. Prime office rents at the end of 2014 for Ipswich were £14.50 and Bury St Edmunds £18.
The data book also shows the Cambridge office and laboratories market posted an all-time high, with activity approaching 950,000 sq ft – and 2015 should surpass that level.
• Industrial market has take-up of 630,000 sq ft in Cambridge
• Industrial market take-up in Milton Keynes is 2.3m sq ft
• Prime rents up by 4.9% per annum over the past five years in the Cambridge office market and 2.8% per annum for the industrial market
• Prime rents up 1.6% per annum in Milton Keynes
• Secondary rental growth has exceeded the prime rental figures in the Milton Keynes and Cambridge industrial markets and the Cambridge office market
• Prime West End rents in London were up by 9.1% over the year to end 2014 at £120 per sq ft
• Rents in the Cambridge office market are expected to reach £39 per sq ft over the next five years, a growth of 2.8%
• Cambridge and Milton Keynes industrial markets are forecasting growth of 4.7% and 2.1% per annum respectively
• Latest data shows the economy grew by 2.6% - the UK's highest growth rate since 2007
• Property investment – UK institutions joined overseas investors as the largest contributors to activity in this market
(Office Market) Prime headline rent; Cambridge £34, Cambridge Labs £29, Chelmsford £26, London West End £120, Milton Keynes £21.50, Northampton £13.50, Norwich £16.50 and Oxford £23.50 (£psf)
(Industrial Market) Prime headline rent; Cambridge £9.75, Milton Keynes £6.75, Northampton £5.75, Norwich £5.75, Oxford £8.50 and Thurrock £8.75