According to Cheffins’ recently published 2025 Datapoint research, Cambridge’s industrial property market continues to attract strong investor interest. Data shows that while occupational take-up eased to 243,000 sq ft in 2025, down from 334,000 sq ft in 2024, investor demand remained consistent. This was underpinned by circa 268,000 sq ft of space going under offer in early 2026 across five key transactions, demonstrating the market’s strength and momentum heading into 2026.
The reduction in headline take-up primarily reflects the absence of larger leasehold deals in 2025 - only two transactions exceeded 25,000 sq ft, suggesting occupiers are becoming increasingly cost-conscious, cautious and seeking out opportunities among the smaller stock on the market. Grade A accommodation accounted for only 6.5 per cent of total take-up in 2025, compared with 38 per cent in 2024. This is reflective of occupiers showing increased caution and cost sensitivity in light of macro political and economic uncertainty. Prices have held firm, averaging £21.50 per square foot (psf) for prime stock in Cambridge city centre and around £18 psf for Cambridge and a ten-mile radius. Whereas secondary stock has seen prices level at around £10 psf for the city and £8 psf for the surrounding area.
While rental levels for prime for industrial space have remained steady, over the past 12 months, new mid-tech schemes in north and south Cambridge are guiding upwards of £25 per sq ft, focusing on high value R&D occupiers seeking functional open space with high profile design.
Investor appetite has remained strong across Cambridge and surrounding areas. Cheffins’ 2025 activity featured competitive bidding and prices consistently above guide levels. Notable transactions included the sale of Brunel Court, St Ives, which achieved £1.8 million against a guide of £1.55 million (6.8% net initial yield), and 17/18 Alms Close, Huntingdon, which sold for £1.25 million (8.3% net initial yield). Investors continue to prioritise multi-let estates and well-located single-let industrial assets in the £1 million – £2 million range, reinforcing Cheffins’ position as the leading agent for industrial investment disposals in the region.
Luke Davenport, Director at Cheffins, said:
"Investor demand for Cambridge industrial remains encouraging, even as occupiers adopt a more selective and cost-focused approach. While headline take-up has paused for breath, the level of space under offer and competitive activity in the investment market demonstrates ongoing appeal. The mid-tech sector, offering flexible R&D and light industrial space is now one to watch as it enters a critical phase in its development. Both occupiers and investors recognise its long-term potential, and it will be interesting to see how rental values settle in this sub-sector.”
The supply of new-build industrial space continues to grow, with around 500,000 sq ft of mid-tech accommodation either completed or under construction, representing approximately 75% of out-of-town availability. Key completions in 2025 included Bourn Quarter Phase Two (140,000 sq ft) and Accelerator Park Phase Two, Sawston (86,000 sq ft). Despite this pipeline, secondary stock remains tightly constrained, with Grade B availability under 225,000 sq ft and Grade C below 70,000 sq ft.
Cheffins’ Datapoint report also analyses office and laboratory markets. The life sciences sector remained challenging, with lab take-up totalling 78,300 sq ft in 2025 due to global economic pressures and funding challenges. Meanwhile, the office market is showing positive signs following a subdued 2024, with more deals completed during the year, although decision-making remains cautious and focused on value.
The full Datapoint report can be downloaded here.
For more information, contact the Cheffins Commercial Department on 01223 213666, [email protected]