■ The South East’s international appeal was further recognised in 2016 as Amicus Therapeutics and Alnylam both established a presence in the UK by opening their first UK offices in Gerrards Cross and Maidenhead, respectively. Four other pharmaceutical companies either consolidated sites or opened new offices in the South East region again underlining the prowess the region possesses and the appeal to pharmaceutical occupiers. Pharmaceutical companies are traditionally less rent sensitive when compared to other business sectors as they are prepared to move further and pay higher rents in order to secure the right premises that will allow them to attract highly skilled labour.
Thames Valley
■ Focusing solely on the Thames Valley, the pharmaceutical sector has been particularly active in the region. In 2016 the sector accounted for 30% of take-up, which is the highest proportion recorded since 2000 and 13% of take-up in the last five years, this in part due to the highly skilled labour that resides in the area. According to the Thames Valley Berkshire LEP there is currently a 7,700 strong life sciences workforce and there are over 2,200 life sciences companies in the region. The Thames Valley has the highest concentration of life science employees and companies in the UK. The opportunity for potential synergies to be realised by clustering with fellow pharmaceutical companies is readily available in the Thames Valley and has proved attractive to pharmaceutical companies who were previously based from outside the region.
■ Furthermore as technology companies and pharmaceutical companies continue to work together more frequently we envisage there will be greater pharma-tech clusters. Collaboration between pharmaceutical companies and big data analytic providers has become crucial to improving efficiencies within the pharmaceutical industry. Large amounts of data are produced during clinical trials which can prove extremely time consuming to disseminate without advanced analytical capabilities. Big data companies are able to speed up the analytical process from the clinical drug trials and ultimately accelerate drug development programs. This innovation can speed up the process in producing new drugs and improve productivity. Examples of this collaboration include Tessella who are a data analytics provider based in Abingdon have worked with both AstraZeneca and GSK. Another example is SAS having a partnership with GSK to provide a globally accessible private cloud.
■ Oxford Economics are forecasting a 12% growth in employment in the professional, scientific and tech sector in the South East by 2025 which equates to an extra 55,000 jobs. There are many opportunities in the Thames Valley for these pharma-tech clusters to materialise such as at Thames Valley Science Park in Reading where there is already a clustering of smaller pharmaceutical and technology companies with this set to expand with 800,000 sq ft of future space to be developed at Thames Valley Science Park.
Investment into Life Science Companies
■ The pharmaceutical sector in the South East received £519.7 million of investment in 2016, following on from £1.48 billion of investment in 2015 highlighting the clear demand for holdings in pharmaceutical companies in the South East from investors. The extra capital invested into the pharmaceutical companies bodes well for future job creation in the South East which in turn will inevitably lead to further real estate transactions. Therefore we expect take-up from the pharmaceutical sector to remain strong in the South East inthe near future years.
■ There have been examples of pharmaceutical companies receiving funding and then acquiring more office space, a notable example in the South East in recent years is when Teva Pharmaceutical Industries bought a 4.6% stake in Mylan for £1.04 billion in 2015, Mylan subsequently leased 39,000 sq ft at Hatfield Business Park.