They said: “The council’s planning officer has acknowledged the significant economic, social and environmental benefits of the project.”
The Beehive Centre is home to 17 retail units including a large Asda, Everlast gym, B&M Home Store and a TK Maxx.
It is surrounded by flats and houses that form part of Abbey Ward, which is one of the most deprived areas of Cambridge.
In a report, external being presented to its planning committee on Wednesday, the city council said the development would “significantly and adversely reduce daylight and sunlight to many habitable rooms and gardens in surrounding properties”.
Railpen wants to demolish the existing Beehive Centre buildings and build workspaces, as well as a local centre with shops, cafes, restaurants and leisure facilities.
It said the development would create 3,000 jobs for Cambridge residents, including entry-level positions and training opportunities.
If the proposals went ahead, Railpen said it intended to relocate “valued retailers” – including the Asda store – to the nearby Cambridge Retail Park, which it also owns.