The stratospheric success of the Oxford-Cambridge Arc knowledge economy has driven up prime office rents in the region by 11.9% in a year – compared to 2.2% average growth in the UK, outside of London.  

However, property consultants Bidwells has forecast that Cambridge rents will reach £50 sq ft over the next five years - prime rents in Cambridge now stand at £45 sq ft, with Oxford at £40 sq ft – indicating that annual growth will slow to be in line with the UK average of 10-11% every five years.   

The university cities’ values are ahead of any other regional office market in the UK at the moment and only slightly below the key London markets of Canary Wharf (£48.50 sq ft) and Stratford (£48.00 sq ft).

Dick Wise, head of business space agency at Bidwells, said: “The Cambridge office market is on track for its busiest year since 2014, during one of the most uncertain economic periods in living memory, and now looks set to break the once unthought-of £50 per sq ft mark within five years.

“Oxford is a global hotspot for innovation and technology transfer, with a mature eco-system plus billions of pounds of public and private investment being made into fast-growing spin out companies, national research facilities and infrastructure. The recent announcement of a partnership between Legal and General and the University of Oxford is a recent example.