According to Savills, take-up of science related space across the Golden Triangle reached 424,000 sq ft in Q1 2024, the second highest total recorded in the past five years. This signals a positive start to the year within the context of a more challenging occupational market and restricted global venture capital flows.
Savills looked at the core markets of Oxford, Cambridge and London recording take-up for science related real estate including offices, laboratories and office space set to be converted into labs.
Most notably, take-up hit 200,000 sq ft in Cambridge, the highest first quarter on record. This can be attributed to larger deal sizes, demonstrating the maturity of science occupiers within the city. Of this, 25% was for laboratory space, with key deals including ViaNautis and Welbeck Health Partners taking 10,850 sq ft and 32,000 sq ft respectively at the Howard Group’s Unity Campus, along with Conduit Pharma taking 2,000 sq ft at Cambridge Science Park.
Looking ahead, Savills anticipates a good level of activity this year in Cambridge, with 185,000 sq ft of requirements currently touring buildings and a number of other occupiers planning moves this year.
Oxford also experienced a strong Q1, with take-up reaching 182,000 sq ft. Although this is a drop on last year’s figure of 275,000 sq ft, the Q1 2023 total was skewed by the 145,000 sq ft pre-let to Moderna at Harwell Campus. In terms of lab space, transactions totalled 38,000 sq ft, accounting for 21% of the total. One example being Oxford Nanopore taking 13,000 sq ft at the Sherard Building on Oxford Science Park.
The remainder of the year looks relatively positive with another 100,000 sq ft under offer, along with active requirements of 450,000 sq ft from as many as 41 companies.
In London, take-up of science related space totalled 42,000 sq ft, largely on par with Q1 2023 and reflecting the much more nascent market dominated by early stage venture capital (VC) funded occupiers. Savills believes that 2024 will be key for labs in the capital, with the first significant wave of purpose built development due to be delivered this year and into 2025.
Tom Mellows, head of UK science at Savills, comments: “It has certainly been a positive start to the year in Oxford and Cambridge, but London has been more impacted by restricted VC flows creating a cautious approach to real estate commitments from some occupiers. It has been encouraging to see other forms of corporate investment, particularly from big pharma stepping in to support the sector, and we are anticipating the VC market starting to free up later in the year.”