The Cambridge commercial property market has entered 2026 with consistent momentum compared to the same time last year, underpinned by the city’s unique position as a global innovation and knowledge sharing hub. With increased political backing, including further support for the Oxford-Cambridge Growth Corridor and government intervention to fast-track local development and infrastructure, Cambridge continues to operate as a robust ecosystem, particularly for the technology and R&D sectors.
A combination of return-to-office mandates and the acceptance of the ‘new normal’ surrounding political and economic uncertainty has led to an increase in the number of office occupiers committing to bricks and mortar. During Q1 2026, 18 deals were completed across the city, with take-up reaching 178,871 sq ft, 42 per cent higher than Q1 2023. This signals a steady and sustained growth which is also demonstrated by a shift in average deal size – for Q1 2026 the average transaction size landed between 7,500–10,000 sq ft, up from just under 5,000 sq ft in Q1 2025. Whilst the overall number of transactions has remained consistent, this positive metric is set against a backdrop of wider economic and political volatility globally. Whilst this setting casts shade over many markets, there appears to be an ongoing acceptance that businesses need to move forward with property decisions where required – this is evidenced by in excess of 50,000 sq ft of office transactions under offer through Cheffins at the time of writing. Rental levels remain stable, with prime city rents holding at £65 per sq ft so far this quarter.
In the R&D and laboratory sector, Q1 2026 saw take-up was more modest compared to Q1 2025, despite demand continuing to be driven by growing Cambridge-based occupiers harking back to the city’s bedrock of nurturing early-stage organisations with university links. These businesses, which range from spinouts to scaling biotech firms, are prioritising fitted, ready-to-occupy lab space over and above buildings requiring significant capital investment and fit-out time. Speed to occupation has become a critical factor allowing cash reserves to be deployed for scientific and staff investments. Within this sector, established science park locations within the Cambridge Cluster continue to attract enquiries, with access to amenities and scaleable ecosystems of likeminded organisations sought after by occupiers. Values for prime, fully fitted lab space have remained stable at £66 per sq ft since the end of 2025.
While the number of new projects committing to development has reduced in recent months, Chesterford Research Park has recently completed the construction of The Sidney Sussex Building, which includes 10 fully fitted lab suites across 56,000 sq ft, matching the occupational trends being seen at this point in time.
The mid-tech and industrial markets have experienced an increase in enquiry level underpinned by certain specific sectors including defence, advanced manufacturing and more traditional heavier industry. This is often due to specific functions that can sometimes only be met within more bespoke ‘blank canvas’ premises that mid-tech or industrial footprints can offer, such as Bourn Quarter, Novus at Pembroke Avenue, Nucleus in Newmarket and The Way in Fowlmere.
For more detailed research for 2025, read the Cheffins Datapoint here.
For more information or commercial property advice, please contact William Clarke, Will Brown and Luke Davenport at Cheffins in Cambridge on 01223 213666, [email protected]