Flexible space becomes key in Cambridge as serviced office support growing occupier base

As home to Europe’s largest technology cluster and known as a global hub of innovation, Cambridge is well-known for its thriving SME and start-up community. In fact, the city has a long history of providing incubator space, with the world renowned St John’s Innovation Centre opening its doors as far back as 1987.

However, driven by a surge in demand for smaller space with the sub-10,000 sq ft bracket growing in the city from 25 per cent in H118 to 30 per cent in H119*, the need for serviced and co-working space, which itself accounted for 28 per cent of take-up levels during the same period*, in the city is increasing. This is particularly relevant for the tech and R&D sector, where businesses can double and triple in size within a short time period and the benefit of a more flexible lease can be vital.

National serviced office operators, such as Regus and Citibase, have already established a presence in Cambridge, but the City also has some strong local and regional flex and co-working brands capitalising on the growth in appetite for this type of space such as Mantle Business Centres and CambridgeSpace, who now have a community of over 50 members.

Another example is The Bradfield Centre at Cambridge Science Park, a 40,000 sq ft facility dedicated to accommodating start-ups. Run by Central Working, the centre offers everything from hot-desks to four, six or 10 people plus offices. Cambridge Science Park itself is also underway creating a small innovation centre and has broken up larger buildings of circa 10,000 sq ft into smaller 1,500 – 2,000 sq ft suites at 150-155 Cambridge Science Park over the last 18 months to cater for the smaller end of the market. In addition, the Biohub, which is 39,500 sq ft, is now complete and will provide flexible lab space at all-inclusive rents on Cambridge Science Park. 

The recent big news for the city has been the confirmation that WeWork will open up a new 1,000 member site (48,999 sq ft) at 50-60 Station Road by the end of the year. Cambridge will be the fourth city that WeWork launched in following London, Manchester and the recently announced Edinburgh.

These diverse range of flexible office providers are particularly keen to take advantage of the growth in sectors such as artificial intelligence (AI) and cyber security in Cambridge.

Desk rates in Cambridge for a private office start at around £325 per person per month (+VAT), and rise to £500 per person per month at the upper end of the market.

The potential for growth in co-working in Cambridge is clear and looking forward we expect this continue as the city maintains its position as a strong base for start-ups, tech occupiers and corporate firms. Reported as the fifth fastest growing population in the UK and over 21,000 registered companies generating £3bn in revenue, the city’s office eco-system has adapted and evolved in line with the changing requirements of its existing and new occupiers with serviced and flexible office space taking a prominent position in securing Cambridge’s future as a key UK business destination.

*according to Savills.