How is the workspace market in Cambridge changing?

2025 saw something of a shift in dynamic in Cambridge, with demand for office space growing to its highest level since 2019, before the pandemic. Nearly three quarters of a million square feet of office space was leased during the year, an increase of just under 50% over 2024 and approximately 35% higher than the five-year annual average.

Conversely, Cambridge saw a decline in the leasing of laboratory space – historically a staple of the city’s tenancy demand – of more than 60%. The downturn in lab space requirements was, however, offset by an increase in the technology and engineering sectors, with areas such as the Science Park increasingly busy with new occupants.

Overall, vacancies sat at 9.4% at the end of last year, one of their highest levels in over 15 years. With new space under construction, that percentage is set to rise, especially with major projects such as Vitrum by Breakthrough at St John’s Innovation Park nearing completion.

Thanks to its global reputation, Cambridge remains one of the UK’s most expensive office markets outside London, with average rents having risen by as much as 70% since 2010. The shifting of demand has, however, led to a slowdown in rent rises, with four- and five-star offices sitting at around the £65/sqft mark. The multi-million-square-foot Beehive redevelopment project and planned expansions at the Wellcome Genome Campus will introduce significant supply into the market in the coming years and this may also contribute to a stagnation in rental values.

Despite the changing corporate landscape, Jonathan Day, Client Relation Partner at The Workspace Consultants, believes that Cambridge remains one of the country’s premium business locations. ‘At The Workspace Consultants we work with a range of clients all across the UK, from life sciences and research to technology and manufacturing,’ comments Jonathan. ‘We know how fundamentally strong the Cambridge market is, and we’re helping our clients to create the ideal workspaces for their teams, whether it’s offices or research laboratories. As our portfolio demonstrates, we specialise in developing amazing spaces that are tailored to the specific needs of our clients and their teams, and we’re well equipped to ensure that Cambridge talent enjoys the perfect environment to enable it to shine for years to come.’

The Workspace Consultants are specialists in office and lab design, project management and furniture supply. If you’re looking to upgrade your office or laboratory space, please call us on 01223 656111 or complete our enquiry form to arrange an initial consultation.