Cambridge office market roundup
Take-up rises year on year
Office take-up in Cambridge reached 360,000 sq ft in 2025, representing a 38% increase on 2024 and on par with the five-year average. The uptick in take-up recorded can partly be explained by Arm leasing 96,000 sq ft at The Optic, Peterhouse Technology Park — the largest letting across the market area since 2021.
Focussing on Q4 2025, 42,000 sq ft of office take-up was recorded. The largest transaction saw Roark acquire 12,000 sq ft at 21 Station Road. As an inward mover to Cambridge, this deal highlights the appeal of the existing ecosystem present in the market.
The out-of-town market experienced the highest level of office take-up in 2025, accounting for 85% of space transacted. Grade A space comprised 54% of take-up in 2025 — the highest proportion since 2022.
Demand from smaller occupiers was affected by weaker sentiment from venture capital investors, which impacted fundraising cycles. This was reflected in the number of transactions recorded below 10,000 sq ft, which was 18% below the three-year average.
Technology occupiers continue to lead take-up
The technology sector was the most active business sector in 2025, accounting for 72% of total take-up. This proportion was lifted by the Arm letting, alongside seven additional transactions over 10,000 sq ft.
Professional services were the next most active business sector. The largest transaction in 2025 emanating from the sector occurred in Q4, when Grant Thornton leased 8,000 sq ft at The Maurice Wilkes Building.
Homegrown Cambridge companies continue to ramp up, with unicorn status becoming less a rare phenomenon and more a regular occurrence. This will hopefully begin to translate into unicorn companies monetising on these shores rather than across the Atlantic.
Mark Taylor, Head of Commercial Agency
New development will set a new rental tone
Prime office headline rent currently stands at £65 per sq ft, achieved within the city centre.
A new rental tone of £48 per sq ft was set for the out-of-town market, with Arm’s letting at The Optic, Peterhouse Technology Park. With Dirac now started at Cambridge North and providing 85,000 sq ft, this rental tone will head higher.
Looking ahead, new development currently under construction in the city centre will set a new rental tone for the city, with Mill Yard due to complete in 2027, followed by Botanic Place in 2028.
Supply falls, with the majority of availability being Grade B standard
Total office supply currently stands at 910,000 sq ft, reflecting a 14% decrease since the end of 2024.
The city centre has the highest concentration of Grade A space compared with other submarkets across the market area. Four buildings currently offer over 20,000 sq ft of available Grade A space in this submarket, the largest being 10 Station Road, where 40,000 sq ft remains available (of which 10,000 sq ft is currently under offer to Nvidia).
However, the majority of available office space is Grade B quality, with 57% of supply being in this category.
Looking ahead, there is currently 538,000 sq ft under construction, the largest being Botanic Place, comprising 333,000 sq ft across two buildings. This is the largest speculative office development currently under construction outside Central London, highlighting the developer/investor confidence present in the Cambridge market.
Find out more about Cambridge's property market here.
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View all of our latest Q4 2025 occupational office data research here.