This rapid tech growth is reshaping real estate requirements, as evidenced by recent trends in office space demand and layout needs.
Drawing from Bidwells' latest research and insights from our recent panel discussion at the MK AI Festival, here’s an overview of how the tech cluster in Milton Keynes is impacting the commercial real estate landscape and shaping future workspaces.
How Tech Growth is Redefining Real Estate in Milton Keynes
Milton Keynes is emerging as one of the UK’s most vibrant tech hubs, boasting the second-highest density of tech employment among UK cities (excluding London), only behind Reading. This rapid tech growth is reshaping real estate requirements, as evidenced by recent trends in office space demand and layout needs.
Drawing from Bidwells' latest research and insights from our recent panel discussion at the [MK Ai Festival], here’s an overview of how the tech cluster in Milton Keynes is impacting the commercial real estate landscape and shaping future workspaces.
Tech Employment Driving Knowledge Clusters
MK benefits from 44% of its workforce being graduates, but it particularly stands out as a tech cluster. It is in the top ten of UK cities in terms of the number of tech jobs, ahead of a number of the country’s major regional cities.
Crucially, Milton Keynes benefits from high tech employment density ranking just after Reading nationally, with over half of the city’s knowledge intensive jobs focused in the tech sector. This concentration of talent and resources provides a foundation for innovation and economic growth.
But successful ecosystems need scale, and critical mass is needed to sustain Milton Keynes as a thriving cluster.
“If we continue to invest in infrastructure and education, Milton Keynes has the foundation to raise its profile as a tech leader,” Leon Gordon (Onyx).
Venture Capital and Funding Support
Venture capital (VC) funding in Milton Keynes has shown resilience, with the long-term trend showing steady growth since 2008. The capital directed to the city’s innovative start-ups has benefited from the opportunity global investors see in high growth technologies such as AI and clean tech. Nationally, AI and clean tech combined have attracted more VC funding than life sciences since 2021.
Although Series C funding has declined since 2018/2019, Milton Keynes’ strategic location, tech-focused infrastructure, and growing investor interest keep it well-positioned to continue attracting investment and nurturing tech ventures.
The Influence of Tech on Office Space Demand
Tech's impact on real estate is significant: Bidwells’ Databook research shows in the first half of 2024, 34% of office space requirements in Milton Keynes came from the tech sector. Underlining the city’s tech appeal, 36% of requirements (by floorspace) in H1 were from companies without an existing presence. All new tech entrants sought spaces under 10,000 square feet, reflecting the trend toward smaller, high-quality spaces that emphasise flexibility, collaboration, and efficiency.
Flexible office solutions are essential for tech start-ups and established firms anticipating growth, allowing businesses to adapt as they expand, and fostering scalability within the city’s thriving tech ecosystem.
“We offer flexibility, allowing small companies to start with us and scale up as they grow.” Marian Powell (X and Why).
Hybrid working arrangements, which our research with YouGov confirms is particularly prevalent in the tech sector, is driving this demand for smaller floorplates (under 10,000 square feet). This is a trend that has persisted since the pandemic, with the demand for larger requirements dipping back. This aligns with national trends, where flexibility and efficient space utilisation are prized.
This said, as is the case with all growing clusters, larger office requirements will emerge as companies are attracted to the ecosystem and the depth of innovative talent.
The Rise of Grade A Spaces in Milton Keynes
With the rising demand for premium work environments, there’s an increased focus on Grade A office spaces in Milton Keynes that support productivity, collaboration, and employee well-being.
As tech companies aim to attract and retain top talent, premium facilities with modern amenities are becoming the new standard. Quality space is a key requirement of new in-movers to the city and, as a result, there has been strong competition for the prime space that has become available.
“People want to feel a sense of connection and inclusion when they’re in the office, and Grade A spaces help achieve that,” explained Marian Powell (X and Why).
Inclusivity in workspace design is a priority in Milton Keynes, as companies are creating adaptable spaces tailored to neurodiverse needs. Bidwells’ research shows that workspaces offering flexibility, quiet spaces, and diverse environments improve employee satisfaction and talent retention, which are especially critical in the productivity-driven tech and knowledge-intensive industries.
“Post-pandemic, it’s about private spaces and a wide range of flexible options to suit diverse needs,” noted Katie Oldknow, COEL, “A lot of our clients are investing heavily in on-site support to attract and retain staff; it’s an investment that’s increasingly common in the science and tech sectors.”
The Milton Keynes 2050 Plan
The Milton Keynes New City draft Plan (2050) has just been subject to public consultation. This document sets out a vision for transformational change with the ambition to establish an innovative and successful place with well planned growth. The emphasis of which is on business investment to create more healthy places to live and work, in particular with a focus directed towards Central Milton Keynes (CMK) amongst other areas. This includes a forecast for circa 300,000sqm of office floorspace identified for CMK.
“It is a positive that the emerging New City Plan (2050) recognises the investment and growth needed in office ‘tech ‘and operational living to elevate CMK to achieve its ambitious as a thriving city centre fit for the future”. Mike Jones, Partner, Planning, Bidwells
City-Centre Office Demand and the ‘15-Minute City’ Concept
Central locations are overwhelmingly preferred by tech companies generally, as recorded in our research undertaken with YouGov, and this is evident in Milton Keynes, with 75% of office space requirements focusing on city-centre areas.
Proximity to transport links, retail, and dining options allows companies to offer employees convenience and vibrant social surroundings. This aligns with the evolving concept of the ‘15-minute city,’ where amenities and workspace are within easy reach, supporting productivity and work-life balance.
In Bidwells’ survey of employers, undertaken by YouGov in May 2024, tech companies ranked public transport accessibility higher than the average for businesses overall. This importance placed on connectivity, both physical and digital, is a vital part of attracting talent and supporting business growth.
“Milton Keynes has a massive presence of big tech, and with its proximity to London, Cambridge, and Oxfordshire, it has the potential to become a hotbed for tech talent and AI,” Leon Gordon, Onyx.
Technological Advancements in Workspace Planning
Tech advances will transform the life science sector over the coming years. Already 44% of life sciences companies we surveyed employ robotics and automation in their operations, with 35% using AI and machine learning. These numbers will increase to 82% and 73% respectively well before the end of the decade.
This presents opportunities for tech clusters around the country. Two-thirds of life science businesses prefer UK-based collaborators, and the majority prefer locations within a two hour travel time. With MK’s position between Oxford, Cambridge and London it is well placed to capture growth from the tech transformation of the life science sector.
These advances will drive demand for office spaces with advanced infrastructure, including high power capacity.
Summary
Milton Keynes is fast becoming a tech-driven city with a commercial real estate landscape that reflects the evolving needs of its knowledge-intensive workforce. The growth of the tech cluster is not only reshaping workspace requirements but also driving demand for inclusivity, sustainability, and flexibility. With robust transport links, access to amenities, and a focus on high-quality office spaces, Milton Keynes is well-positioned to attract and retain the talent and investment that will fuel its continued rise as a premier UK tech hub.
We would like to thank everyone who helped make our MK AI Festival panel session, The Future Workspace: How the Tech Evolution is Shaping Milton Keynes, a success. Thank you to our panellists—Leon Gordon of Onyx Data, Andy Paul of Fliweel Tech, Marian Powell of X and Why, and Katie Oldknow of Coel—for sharing their valuable insights. A special thanks to Mike Jones, Partner at Bidwells, for chairing the discussion, and to Sue Foxley, Research Director at Bidwells, for her support. Your contributions were key to the event’s success.
