Cambridge office market back to pre-COVID strength

Detailed in the Cambridge Databook, the standout transaction was Arm’s expansion, with the tech giant acquiring an additional 95,000 sq ft at British Land’s Peterhouse Technology Park. Beyond this, there was a healthy spread of activity across a range of occupiers, with demand concentrated in science parks and edge-of-city locations.

Cambridge’s world-class science and technology ecosystem continued to shape its occupier profile, says the Bidwells report. Notably, 77 per cent of current office requirements are from science and technology companies, including life sciences, with combined office and lab demand from knowledge-intensive industries dominating 88 per cent of total requirements.

Bidwells says that availability remained stable at 13.1 per cent but warns that, given the low level of construction activity and high levels of demand, the supply of Grade A office space is expected to shrink.

Only two major speculative office schemes are under construction, Mill Yard and Botanic Place – both being delivered by RailPen. Mill Yard (112,000 sq ft) is scheduled for completion in early 2027, creating a near-term supply gap likely to place upward pressure on rents. Bidwells forecasts prime rents will reach £65 per sq ft by year-end 2025.

Bidwells highlights that Cambridge is a mature tech cluster, with 20 per cent of local employment in IT and advanced manufacturing, and adds that 43 per cent of current office requirements are coming from the tech sector, which is expected to remain a key driver of the market over the coming year.

A third of office requirements are currently from life science and other science companies. The cluster’s unique position at the crossroads of science and tech continues to drive long-term occupier demand through sector convergence.

Bidwells reports that venture capital investment in Cambridge life sciences was 10 per cent above the five-year H1 average as of June 2025, signalling a renewed momentum for small and mid-sized firms.

Sue Foxley, Research Director, Bidwells, said: “This is the most robust start to the year we’ve seen in the Cambridge office market since before the pandemic. These take-up levels highlight the enduring strength of the city’s knowledge economy and the global draw of its science and technology ecosystem. While the lab market is more muted, there are signs of some improvement in VC funding, which will stimulate increased activity in time.”

Max Bryan, Head of Science and Technology, Bidwells, adds: “With Grade A office supply tightening and the pipeline limited, we expect upward pressure on rents as occupiers compete for best-in-class space. Cambridge’s position at the crossroads of life sciences and technology continues to attract global demand, underlining the city’s long-term growth trajectory.”

• The full databook is accessible at www.bidwells.co.uk/insights-reports-events/cambridge-databook-offices-labs-july-2025/