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The Savills Blog

Lessons London can learn from Cambridge's life sciences sector

Cambridge has been at the forefront of the life sciences sector for at least 45 years, since the first ever science park in the UK opened its doors to the north of the city. These days, its reputation precedes it welcoming occupiers from across the globe.

London, on the other hand, has been the epicentre of commercial activity since its inception around 2,000 years ago. However, while the capital is home to many financial services companies, alongside a world class tech scene, it’s yet to create a true life sciences cluster. London has just 87,000 sq ft of laboratory space compared with 6 million sq ft across Cambridge.

This isn’t necessarily a bad thing. While Cambridge suffers from increasingly tight supply and poor graduate retention, London has more space and an abundance of talent making it, in theory, the ideal location.

Key areas are now emerging, specifically in King's Cross at the British Library site and in Sutton where there are plans to create a London cancer hub. These clusters are not unlike Cambridge, springing up around world renowned institutions such as Imperial College London and the Francis Crick Institute to maximise collaboration and recruit the best people. We believe that other clusters will emerge in London over the next few years.

In Cambridge Astra Zeneca has taken approximately 800,000 sq ft adjacent to Adenbrookes Hospital, enabling staff to be at the cutting edge of medical science. What’s more, a number of life sciences firms actually started life within Cambridge University, forging close links and receiving funding before successfully commercialising their ideas.

Yet, while London universities may already be producing top life sciences firms, the question is where do they go next? It’s not as simple as just leasing available office space, there are a number of requirements to consider.

A lot of the buildings in Cambridge have been built with flexibility in mind. Continual advances in science mean that changes are needed frequently, and quickly. While a company might start with a focus on chemistry, this could shift to biology as further discoveries are made.

What’s more, the space may need heavy duty plant and machinery such as goods lifts and extraction lines that aren’t necessarily included in a standard multi-let environment.

It’s also important to consider laboratory densities. In a conventional office you usually look at how many people per sq ft to figure out how much space you need. However, there may only be one scientist per 180 sq ft, creating a significant premium.

Another reason for Cambridge’s success is its defined clusters. Collaboration is key and often clusters are created organically, meaning there has to be adequate space to grow.

While Cambridge is full of Nobel Prize winning scientists and Oxford creates politicians, London offers a mix of both. It  has some catching up to do, but with the right ingredients it has the potential to breathe some life into its sciences sector.

 

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