Limited access to funding hits life sciences occupancy in Q1
A challenging life sciences occupational market has translated into a slowdown in leasing transactions across the Golden Triangle, according to Savills.
The most recent data from the consultancy tracked 321,222 sq ft of science-related space over the first three months of 2025 across the Cambridge, Oxford and London, with demand down 26% on the prior year.
Savills has attributed the slowdown to restricted global venture capital flows, but noted the move has stimulated activity across the larger players within the sector.
A challenging life sciences occupational market has translated into a slowdown in leasing transactions across the Golden Triangle, according to Savills.
The most recent data from the consultancy tracked 321,222 sq ft of science-related space over the first three months of 2025 across the Cambridge, Oxford and London, with demand down 26% on the prior year.
Savills has attributed the slowdown to restricted global venture capital flows, but noted the move has stimulated activity across the larger players within the sector.
The detailed look into the UK’s most mature life sciences market found Q1 2025 take-up totalling 204,166 sq ft.
Cambridge has surpassed last year’s figures and hit the second highest total recorded over the past five years. The move has been led by ARM taking more than 95,000 sq ft of space at British Land’s Peterhouse Technology Park.
Oxford had a more muted start to the year, with take-up totalling 68,739 sq ft, considerably below the first quarter of 2024. According to Savills, 62% of total take-up in the quarter was for lab or mid-tech space.
The UK capital, meanwhile, has seen 48,317 sq ft of science-related space transacted over the first three months of 2025, a 15% increase on 2024’s figure. Savills noted the activity has also driven prime rents up to £120 per sq ft, with labs being delivered in 2025 quoting upwards of £160 per sq ft in the Knowledge Quarter.
Turning to demand, Savills tracked more than 400,000 sq ft of active requirements across Cambridge, with a further 205,000 sq ft in Oxford and 330,000 sq ft in London.
Tom Mellows, head of UK science at Savills, said: “As we know, venture capital funding challenges have made some companies more cautious over the last 12 to18 months and although it is too early to predict the impact of the recent US tariff policy, this could well disrupt global supply chains for more mature companies unless resolved quickly.
“However, we are seeing more venture capital-backed businesses able to access new investment and re-activate space requirements. While the first quarter of 2025 was subdued, there are clear signs of recovery, and we anticipate growing momentum throughout the rest of 2025.”
