Oxford & the Arc: A New Era for Office & Innovation Space

Oxford remains a global innovation powerhouse, and over the coming years it — together with its surrounding corridor — is entering a new phase of growth, driven by demand for office space, offices to rent in Oxford, life-sciences, high-tech and hybrid R&D space. As the city’s core tightens, emerging developments on the outskirts and nearby areas such as Bicester Arc and Oxford Business Park are becoming increasingly relevant for occupiers seeking scale, flexibility and infrastructure. This includes businesses searching for serviced offices, private offices, or modern commercial property options across Oxfordshire.

Oxford’s world-class university credentials also provide a central hub within the wider Oxford–Cambridge Arc, bringing together education, research, technology and business on a massive scale. Roughly half of the UK’s life-science activity takes place in or around Oxford, making it one of the most concentrated science clusters in the country.

The existing core office/lab stock — including space along Banbury Road, Botley Road, Cowley Road, Robert Robinson Avenue and Magdalen Road — totals around 7 million sq ft. This includes a mixture of lab, office, and tech-enabled office buildings, as well as a wide range of meeting rooms, flexible workspace and property options suited for organisations of all sizes.

Recent market reports highlight sustained demand for both modern offices and specialised lab/R&D space:

• In 2024, combined office and laboratory take-up in Oxford reached approximately 407,000 sq ft.

• The second half of 2024 saw rising demand for smaller lab suites (<10,000 sq ft), driven by start-ups and spinouts.

• By mid-2025, the office sector remained resilient, with central Oxford reaching prime rents of £63 per sq ft — especially across Oxford Business Park and high-quality serviced offices.

• New stock near the M40, including at Bicester Arc, provides further choice for those seeking flexible space to rent or buy.

Together, these trends highlight a two-speed market: intense demand for hybrid office/lab spaces, while modern, well-located offices to rent in Oxford continue to perform strongly.

To meet demand, a new wave of developments is underway:

• New science-park campuses across Oxford and Oxfordshire are expanding capacity.

• Additional sustainable office/lab buildings have been approved at major parks such as Oxford Science Park.

• More than 5.4 million sq ft of new office and laboratory development is projected across the region by 2026.

• Bicester Arc alone can deliver up to 600,000 sq ft across 40+ acres — a significant addition to regional commercial property supply.

Even with this growth, pressures remain, especially for high-spec hybrid office/lab space and infrastructure-rich office buildings.

Located just north of Oxford and well-connected to Milton Keynes, London, and Birmingham, Bicester Arc offers one of the region’s most flexible business environments. Its 48-acre masterplanned business park offers:

• Outline consent for 600,000 sq ft of development

• A dedicated 13.7 MVA power supply

• Freehold and leasehold options

• Landscaped, eco-sensitive workspace with meeting rooms, collaborative space and scalable private offices

• Proximity to surrounding areas such as Abingdon and key industrial estates

For companies in life-sciences, advanced engineering, deep-tech, or high-power sectors, Bicester Arc offers a compelling alternative to traditional Oxfordshire offices and serviced offices closer to the city centre.

For Occupiers
More choice across Oxford, Bicester, Abingdon, and nearby corridors like Milton Keynes means businesses can select the right blend of location, specification and cost — whether they need a corporate HQ, flexible office space, collaborative R&D floorspace or private offices within a serviced environment.

For Investors
Demand remains robust for well-specified lab-enabled or hybrid office space. The expansion of well-connected business parks and commercial property hubs strengthens the region’s long-term prospects.

For the Region
With strong transport links to London, Birmingham and regional market towns, Oxfordshire’s future growth relies on high-quality R&D real estate, modern offices, and sustainable planning across the wider Arc

Demand for high-quality office, lab and R&D space across Oxfordshire is unlikely to slow. Developments such as Bicester Arc — along with innovation clusters throughout Oxford — will be critical as businesses seek a wide range of flexible office options, from serviced offices to purpose-built lab-enabled HQs.

For companies, landlords and investors navigating this fast-evolving market, now is the time to secure future-proof office space in a region that remains at the forefront of global innovation.

We are currently experiencing demand in Banbury, Oxfordshire OX16, for office accommodation mainly due to Banbury’s M40 location and where office property costs are significantly less than in Oxford Leamington or Birmingham.

Excellent road and rail communications between the two major UK Cities (Oxford and London) via the London to Birmingham M40 Motorway and the Chiltern National Rail Line provide ease of access to the regions.