Savills recently reviewed the primary markets of Oxford, Cambridge and London, observing the uptake of real estate associated with the science sector like offices, labs, and office spaces undergoing conversion to laboratories.
In Cambridge, there has been a remarkable uptake of 200,000 sq ft in the first quarter—the highest on record for that period. The size of the deals has increased, indicating that the science businesses in the area are progressing well. Laboratories accounted for 25% of the space acquired, with ViaNautis and Welbeck Health Partners securing 10,850 sq ft and 32,000 sq ft respectively at Unity Campus by Howard Group. Conduit Pharma also acquired 2,000 sq ft at Cambridge Science Park.
Savills foresees ongoing strong activity throughout the year in Cambridge, with 185,000 sq ft of space being actively considered and several companies planning relocations.
Oxford’s first quarter was also robust with a take-up of 182,000 sq ft. Despite being less than the previous year’s 275,000 sq ft—which was affected by a substantial pre-letting to Moderna at Harwell Campus—lab space deals accounted for 38,000 sq ft, being 21% of the total. Notable among these was Oxford Nanopore leasing 13,000 sq ft at the Sherard Building within Oxford Science Park.
With the remainder of the year ahead, another 100,000 sq ft is already under offer in Oxford, and there’s a significant interest from up to 41 companies for an additional 450,000 sq ft.
In London, the uptake for science-related space was 42,000 sq ft, consistent with the first quarter of the previous year, showcasing an industry that’s still in early development stages and driven by occupiers funded by venture capital. Savills notes that 2024 will be crucial for lab spaces in London, as significant specialized development projects are expected to complete this year and into 2025.
Tom Mellows, the head of UK science at Savills, stated: “The year has started strong in Oxford and Cambridge, though London’s market feels the brunt of a venture capital slowdown, making some occupiers hesitant about property commitments. However, we’re buoyed to see investment from other sectors, like big pharmaceutical companies, supporting the industry, and we expect the VC market to pick up as the year progresses.”
