Oxford and Cambridge stand to gain from scientific talent from the US, delegates heard at the latest UKPropSocial event. The Cambridge: Winds of Change event also heard of growing demand in the property sector for flexible office space. UKPF correspondent Mike Lightfoot reports.
Cambridge: Winds of Change focused on the impact of US trade barriers on the East of England property markets, particularly emphasising opportunities in the science and tech sectors.
The May 7 event at One Station Square, Cambridge featured key speakers Matt McBrien, regional director for AECOM, Dan Francis, head of research for Carter Jonas, William Rooke, partner at Carter Jonas, and Jodie Welch, transport planner with KMC and chair of NextGen East.
Matthew Battle, UKPF managing director, opened the discussion, highlighting the complexities of global trade agreements and their historical significance in fostering economic stability.
He noted the challenges of US trade policies, particularly under the Trump administration, and their potential impact on sectors like the UK film industry and real estate in Cambridge.
Dan Francis provided an economic overview, discussing the anticipated weak economic growth and the implications of rising employment costs. He highlighted the challenges of inflation and the potential for the Bank of England to cut interest rates.
Dan also addressed the impact of these economic factors on the property market, noting a shift towards flexible office spaces and the resilience of the industrial sector.
William Rooke discussed the specific dynamics of the Cambridge market, noting the strong demand for life sciences during the Covid era and the subsequent challenges in sustaining high rental values. He suggested a potential pivot towards office schemes and highlighted demand for flexible office spaces, as seen in developments like 10 Station Road.
Jodie Welch addressed infrastructure developments, particularly the East-West Rail proposals and the potential impact of the new Mayor of the combined authority’s transport policies. She emphasised the importance of safeguarding land for future transport corridors and the need for a holistic transport strategy to support Cambridge’s growth.
The panel put the spotlight on potential benefits of attracting talent from the US, particularly in light of reduced funding for science in American colleges. Given their strong academic and research environments, Cambridge and Oxford were highlighted as attractive destinations for such talent.
On investment, the panel noted challenges of high interest rates and the need for a market correction to align landowner expectations with current economic realities. The potential for interest rate cuts was seen as a positive stimulus for the property market, continuing to make real estate an attractive asset class.
Overall, the event underscored the resilience of the Cambridge property market amidst global economic uncertainties. It highlighted opportunities in flexible office spaces, infrastructure development, and the potential influx of international talent. The discussions emphasised the need for strategic planning and adaptability to navigate the evolving economic landscape.
Image (l-r): William Rooke, partner, Carter Jonas; Dan Francis, head of research, Carter Jonas; Matt McBrien, regional director, AECOM; Jodie Welch, senior transport planner, KMC Transport and chair, NextGen East and Matthew Battle, managing director of UK Property Forums
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