Oxford: Carter Jonas identifies development capacity for new office and lab space

Currently only 55,000 sq ft of grade A quality space is available for Oxfordshire businesses. The latest research by Oxford-based commercial agency Carter Jonas, however, identifies that there is capacity for approximately 340 acres, equating to 7.48 million sq ft of office and R&D accommodation, coming through the development pipeline, with an additional 2.09 million sq ft of consented sites in Oxfordshire’s main business locations.

 Based on the current five-year average annual take up of 250,000 sq ft, this equates to approximately 38 years’ supply.  However, if the county starts to fulfil its potential and matches Cambridge’s 2015 take-up figure of 1.1 million sq ft, this pipeline supply will reduce dramatically.

The county’s immediate office and laboratory pipeline remains primarily concentrated around key business park locations around Oxford and South Oxfordshire including Magdalen College’s The Oxford Science Park, Harwell and Milton Park.  These business parks are in general now better equipped to deliver stock than at any time in the past decade following significant investment. 

Jon Silversides, a partner in Carter Jonas, commented:  “There are signs that speculative development is returning to the agenda, notably at Harwell, and others are likely to follow suit.  From an investment perspective, we believe that Oxfordshire represents good value, with business park quoting rents standing between £25.00 and £27.00 per sq ft, compared with other locations in the South East such as Reading and Cambridge where rents are over £35.00 per sq ft.  This differential is even more significant with London, where prime office rents in the West End are approaching £130 per sq ft.