Cheffins’ recently published 2025 Datapoint research shows strong investor interest in Cambridge’s industrial property market. Whilst occupational demand has eased, investor-led demand remains consistent.
Occupational demand decreased from 334,000 sq ft in 2024 to 243,000 sq ft in 2025. However, 268,000 sq ft are already under offer in 2026, buoyed by five key transactions and indicating a strong investor interest.
The reduction in headline deals reflects a lack of larger leasehold deals in 2025. Only two transactions exceeded 25,000 sq ft, suggesting occupiers are becoming cost-conscious, cautious and seeking out opportunities among the market’s smaller stock.
Grade A space accounted for just 6.5 per cent of total take-up in 2025, compared with 38% in 2024. This suggests sensitivity in light of macro political and economic uncertainty.
Prices have held firm, averaging £21.50 per sq ft for prime stock in Cambridge city centre and around £18 per sq ft for Cambridge and a ten-mile radius. Secondary stock sits at approximately £10 per sq ft for the city and £8 per sq ft for the surrounding area.
Rental levels for prime industrial space remained steady over the past 12 months at upwards of £25 per sq ft for mid-tech schemes in north and south Cambridge which focus on high value research and development occupiers.
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.”
New-build industrial space represents 75% of out-of-town availability, with 500,000 sq ft of mid-tech accommodation either completed or under construction.
The full Datapoint report can be downloaded here – https://www.cheffins.co.uk/ugc-1/uploads/pageblocks/29701/bbc7b8ed95316495c34d443937874e32.pdf
Image: Cheffins
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