Take-up of labs hits all-time high across OxCam Arc
Take-up of laboratory space in 2023 hit record levels in both Cambridge and Oxford, according to the most recent data from Savills.
The results come despite take-up of science-related real estate across the Golden Triangle in 2023 falling by 6% year-on-year to 1.3m sq ft.
The decline reflects the more challenging venture capital funding market seen last year amid ongoing economic uncertainty. The research shows that money raised by life sciences companies headquartered in the Golden Triangle was 9% lower in 2023 at £1.42bn.
Take-up of laboratory space in 2023 hit record levels in both Cambridge and Oxford, according to the most recent data from Savills.
The results come despite take-up of science-related real estate across the Golden Triangle in 2023 falling by 6% year-on-year to 1.3m sq ft.
The decline reflects the more challenging venture capital funding market seen last year amid ongoing economic uncertainty. The research shows that money raised by life sciences companies headquartered in the Golden Triangle was 9% lower in 2023 at £1.42bn.
Turning back to take-up figures, Savills has tracked 346,000 sq ft of labs transacted in Cambridge over the year, up 61% on the previous record, which stood at 212,000 sq ft in 2019.
In Oxford, Savills’ data showed 300,000 sq ft of labs were leased in 2023, up 20% on the previous high of 251,000 sq ft achieved in 2022.
From the office perspective, life science occupiers have signed for 292,000 sq ft of workspace in Cambridge, down 57% year-on-year, and 172,000 sq ft in Oxford, which is 13% below the 2022 figure.
Savills warned that there remains limited supply of grade-A office space across the OxCam markets, notably in the city centres, which is expected to continue to hamper the take-up figures for offices.
Among the notable transactions for the year was the letting of the whole of BioMed’s 38,000 sq ft Building 960 at Babraham Research Campus in Cambridge to Mosaic, Insmed and Xap, prior to practical completion, at around £45 per sq ft.
Also in Cambridge, the Domainex deal at Unity Campus stood out, totalling 24,000 sq ft at £42.5 per sq ft.
In Oxford, the largest transaction saw Moderna prelet a 145,000 sq ft research and development facility at Harwell Campus.
In London, take-up of science-related space reached 194,000 sq ft, of which 97,000 sq ft was labs.
Savills noted that the London market remains relatively nascent when compared to Oxford and Cambridge, characterised by venture capital-backed start-ups seeking smaller quantities of fully fitted lab space.
This was evident in 2023 with just one lab deal over 15,000 sq ft – hVIVO acquiring 39,000 sq ft at 40 Bank Street in Canary Wharf.
Tom Mellows, head of UK science at Savills, said: “Looking ahead, in 2024 we will see the delivery of the first larger purpose-built lab space in London, which should help to accelerate take-up in the capital.”
All eyes will be on Tribeca, an 830,000 sq ft laboratory in the heart of the capital’s biotech cluster. The first phase is scheduled to complete in the first quarter of 2024. It is being delivered by BlackRock Alternatives in partnership with British Airways’ New Airways Pension Scheme, Reef Group and Singapore sovereign wealth fund GIC. Part of the building has already been taken by the London BioScience Innovation Centre.
Mellows added: “Overall 2023 has been a positive year for the sector, despite ongoing economic headwinds. Looking ahead, the final quarter of 2023 saw a flurry of announcements, including the Autumn Statement, that looked favourable for investment by corporates already in the UK and those looking to enter the market.
“With all this in mind, we continue to see positive levels of demand and expect to see an uptick in activity once key developments complete in all three locations next year and into 2025.”
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