Life sciences investment, development and leasing activity across the Golden Triangle markets remained relatively resilient through 2024, ending on a high and with a good level of optimism for the year ahead.
The sector has seen a collective push by developers to bring forward state-of-the-art laboratory facilities across Cambridge, Oxford and London, somewhat addressing the acute lack of space in all three markets. However, stock hit the market just at the time when macroeconomic challenges constrained investment for would-be occupiers, delaying their real estate decisions.
Joanne Henderson, head of life sciences for Europe at CBRE, said: “2024 has been marked by global volatility and a challenging environment for life sciences businesses, with geopolitical uncertainty and high inflation impacting venture capital funding. However, post-election stability in the UK has revitalised venture capital activity, with £3.7bn anticipated for the sector by year end.”
Matt Smith, head of science and technology at DTRE, added: “There is a belief that we have turned a corner, and some green shoots are beginning to show. Renewed occupier confidence is reflected in companies now returning to the market. We have seen an uptick in larger space requirements, with more than 270,000 sq ft of lab space currently under offer across the Golden Triangle.”
Prologis has begun talks with the first potential occupier at 2000 Discovery Drive on Cambridge Biomedical Campus shortly after securing planning approval. Bit.bio is considering a prelet of 50,000 sq ft of workspace, just shy of half of the 115,000 sq ft building. Prologis’s development proposals also include 3000 Discovery Drive, a 100,000 sq ft life sciences building.
Teamwork makes the dream work
Over the past year, industry leaders have learnt that occupiers are placing greater emphasis on campuses and buildings that offer amenity-rich environments. Royal London Asset Management and the Crown Estate have both been quick to catch up with this trend, with the latter working up plans to redevelop Cambridge Business Park into a £1.5bn mixed-use scheme, creating “an inclusive destination, connecting ideas, people and industries that facilitate important science innovations with tangible social impact”.
Meanwhile, RLAM has bagged buildings 1000, 2000 and 9000 at Cambridge Research Park, having bought building 3000 on the park earlier in 2024. The investor has added more than 150,000 sq ft of space to its portfolio following these two deals as it seeks to become the sole owner of the park.
Will Hawking, head of life sciences at RLAM Property, said: “The war for talent remains fierce, and clusters that can offer a desirable work-life-play balance and attract global talent, such as Cambridge Research Park, will continue to lead the market.
“On the occupational side, demand is growing as active requirements in the market increase, fuelled by rising venture capital investments and M&A activity that is influencing space needs. We are also seeing the lines between science and tech blur further, with AI and data innovations driving efficiency and accelerating scientific breakthroughs.”
Amy Hockley, head of innovation leasing at British Land, added: “AI continues to accelerate the rate of productivity and discovery in life sciences. The UK, particularly the Golden Triangle, is ideally suited to capitalise on growth in both these sectors given our strong ecosystem of academic and research institutions and deep pool of talent.
“At British Land, we are already seeing demand from these businesses and increased levels of interest from life sciences businesses, in terms of both volume and size, which is really encouraging.”
RLAM and British Land have joined forces on the transformation of the former Meta building following the sector’s largest investment deal of 2024, which has seen RLAM buying half of 1 Triton Square, NW1, near Euston station, for £192.5m from British Land. The 370,000 sq ft building is proposed to be turned into a mix of fitted and lab-enabled workspace alongside a potential serviced offices offering.
The Crown Estate is not going solo in the life sciences competition arena. The investor has signed an exclusive long-term life sciences mandate with Oxford Science Enterprises and Pioneer Group to build on the success of its initial £125m commitment to help the duo to acquire and turn a former Debenhams department store in Oxford into labs.
The partners have appointed Perkins & Will as architect to design the scheme prior a planning application being made in 2025. The redevelopment is set to retain the original 126,000 sq ft building without any additional massing proposed.
Richard O’Boyle, executive director at Pioneer Group, said: “We expect that the continued convergence of digital health and traditional life sciences will further accelerate, requiring facilities designed to support hybrid work and high-tech research, with sustainability goals becoming a key factor. A growing emphasis on talent hubs, both within and beyond the Golden Triangle, is likely as companies aim to cluster around areas rich in skilled expertise.”
Occupiers want developers to go all in
On the supply and development front, a closer look at the pipeline reveals challenges caused by shifting appetite for development risk among funding partners, which has delayed project delivery and, in some cases, prompted a rethink of use or strategy.
Tom Mellows, head of UK science at Savills, said: “We have certainly seen challenges, with rising inflation and interest rates impacting development viability. However, a number of developers have secured planning consents and there are some new schemes under construction, which are due to reach completion in 2025 and into 2026.”
London BioScience Innovation Centre in King’s Cross has managed to get back on the rails after construction, fit-out and engineering group ISG called in the administrators in September. The Royal Veterinary College-owned life sciences and technology campus has appointed Epiphany as the main contractor to deliver a 22-week fit-out programme across more than 37,000 sq ft and four floors at the seven-storey Apex in King’s Cross, NW1. The incubators are expected to become operational within the initial terms agreed with two occupiers, Baseimmune and Laverock.
Apex is one of five mixed-use buildings in the wider 600,000 sq ft scheme, known as Tribeca, being delivered by Reef Group in partnership with BlackRock Alternatives.
Peter Langly-Smith, managing director at Reef, said: “Occupiers are going to have more choice as new lab space is delivered and as the UK market matures. It is very clear, from the experience of the past 12 months, that occupiers wish to be located in the best buildings, which offer flexibility and adaptability for their evolving demands, with proximity to market-leading research and academic institutions.”
James Sheppard, international head of asset management at Kadans Science Partner, has backed the view, adding that companies require space that will easily adapt with them so they can scale up and down as and when requirements change. He said: “We also expect the demand for serviced space to further increase in 2025. Having access to a dedicated, external laboratory manager and shared equipment can take a lot of the day-to-day running of a lab – and the associated costs of acquiring and maintaining specialist equipment – away from the occupier.”
As such, the Netherlands-based developer is pushing ahead with the development of Tileyard Quarter, with the first 113,000 sq ft building, known as Mayde, at 5-10 Brandon Road, N7, launched in November, followed up by planning consent being granted for a 76,338 sq ft building called Kiln in December.
Kadans, alongside Canary Wharf Group, has also broken ground to deliver Europe’s tallest commercial lab building. The purpose-built facility will be a vertical campus housing early-stage to established companies, delivering lab and light manufacturing space, which is in short supply across the capital.
Mairi Dillon, associate director for science ecosystem at Canary Wharf Group, said: “One North Quay is a major step forward for the capital and its future as an international hub for science and innovation excellence.”
Public sector backing
Public sector support has always been a key ingredient in helping the life sciences markets to thrive. The Labour government has mooted ambitions to invest more in research, development and innovation across the UK’s most prominent life sciences clusters.
Rob Beacroft, co-founder of investment manager Lateral, said: “The Labour government [has focused] on innovation and research and development, though regulatory hurdles and policy misalignment highlighted the need for greater support.”
Matt Lee, head of science and technology at Carter Jonas, added: “The focus on improving the performance of the NHS creates an opportunity for the adoption and co-development of global innovation in the sector, fuelled by opportunities for private sector companies to undertake research with the universities and NHS trusts.”
Bruntwood SciTech has headed to London for the first time in a £200m deal with Imperial College London to create at least 200,000 sq ft of life sciences and deep tech innovation workspace as part of ambitious £2bn WestTech Corridor expansion plans at White City.
The move came shortly after the college, ranked second globally in the QS World University Rankings 2025, took space for a professional services hub in Stanhope and OTPP’s MediaWorks building at White City Place, W12.
Charles Walford, senior development director and head of science and tech workstream at Stanhope, said: “London’s investment streams are more directed towards specific clusters such as King’s Cross and White City than large swathes of the capital, and it is within these clusters where we are seeing the occupier demand.”
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