Contents

• 2024 Overview

• London Market Update

• Oxford Market Update

• Cambridge Market Update

2024 Overview

London and Cambridge experienced a lower lab take-up than years previously, particularly from a weakened funding environment in Q1–Q3, which led to a fall in occupiers making real estate decisions. However, Q4 showed signs of recovery, and this has been proven with the significant amount of space under offer in both markets. Oxford, however, showed resilience throughout 2024, and the lab market experienced high-profile deals with the likes of Oxford Nanopore and Novo Nordisk.

Although 2024 presented challenges, with the volume of space under offer and the improving funding landscape, we are confident that 2025 will perform in line with, if not above, the five-year average across the Golden Triangle markets.

London Market Update

• Q4 science-related take-up totalled 27,347 sq ft. This brought total science-related take-up in London for 2024 to 161,353 sq ft, with c.17.5% (23,363 sq ft) of this being laboratory accommodation.

• Despite laboratory take-up in London falling below the five-year average, we remain optimistic for 2025, with over 115,000 sq ft of laboratory space currently under offer, the majority of which is expected to complete in early 2025, signalling renewed demand in the sector.

• While the venture capital (VC) science funding market in London underperformed in early 2024, we saw a notable rebound in Q4, with several larger raises coming through. This uptick has driven increased activity, with more occupiers actively seeking space.

• Key deals in 2024 for London included: Base Immune @ LBIC, Apex: 3,500 sq ft @ £120 psf (fully fitted labs); Laverock Tx @ LBIC, Apex: 4,112 sq ft @ £120 psf (fully fitted labs); 20 Water Street also had a number of fully fitted lettings, totalling c.5,500 sq ft.

• Total active and upcoming lab market demand is c.485,000 sq ft. Key active requirements include: Lilly: 30,000 sq ft of labs; Doctors Laboratory: 20,000 sq ft of offices or labs; Humanoid: 20,000–30,000 sq ft of dry labs

• Prime achieved rents for fully fitted lab space in London are £120 psf, but there is space coming forward quoting upwards of £160 psf in the Knowledge Quarter.

• New completed developments/refurbishments of laboratory space in 2024 totalled 180,000 sq ft. There is c.655,000 sq ft of London laboratory pipeline coming forward in 2025 – these include: Refinery @ ARC West London; Apex (Tribeca), 1 Triton Square @ Regents Place; Victoria House and Jahn Court @ Regent Quarter.

Oxford Market Update

• Q4 take-up totalled 153,794 sq ft, which is more than three times that of the previous quarter, showing some positive momentum for transactions for the year and going into 2025.

• This brings total office & laboratory take-up for 2024 to 443,208 sq ft, with 46% (204,630 sq ft) of this being laboratory accommodation.

• Key deals in Q4 2024 included: Novo Nordisk @ Iversen Building, TOSP: 61,000 sq ft @ £60.00 psf (Shell & Core NIA with a CAT A contribution); Laing O’Rourke @ Hinshelwood Building, TOSP: 31,568 sq ft @ £57.50 psf (CAT A Office); Flurok @ Building 7200, ARC Oxford – 3,083 sq ft @ £72.50 psf (fully fitted labs)

• We estimate c.270,000 sq ft of active demand, with a further 450,000 sq ft that is in the pipeline and will likely come through over the next 12 to 24 months. Key active requirements include: Vertex: 125,000 sq ft of lab/office slow moving, but still active; XYME: 8,000–10,000 sq ft of CL2 labs; Salience Labs: 5,500–6,500 sq ft of dry labs

• Prime rents have remained steady in 2024 at £63.50 per sq ft for Grade A city centre offices, £90.00 psf for smaller fully fitted laboratory space, and between £78.50 and £82.50 psf for larger fitted laboratory space (depending on spec).

• Newly completed developments/refurbishments of laboratory space in 2024 totalled c.155,000 sq ft. Pipeline coming forward in 2025 is limited to c.240,000 sq ft across six buildings. These include: The Red Hall (office)and 1 & 2 Fallaize Street at Oxford North, lab refurbishments at ARC Oxford, and Quad Three at Harwell.

Cambridge Market Update

• Q4 office and lab take-up for Cambridge totalled 44,884 sq ft, bringing total take-up for 2024 to 338,835 sq ft, with 27% (90,986 sq ft) of this being laboratory accommodation.

• Despite total take-up for 2024 in Cambridge falling below the norm, with over 150,000 sq ft under offer and due to complete in Q1 of this year, we remain optimistic.

• Key lab deals in 2024 included: Welbeck Health @ Orion, Unity Campus: 31,000 sq ft @ £44.00 psf (Shell & Core); ViaNautis @ Cadence Building, Unity Campus: 9,164 sq ft @ £61.50 (fully fitted); Sortera @ Sovereign House, Vision Park: 6,316 sq ft @ £54.50 psf (fully fitted); Biocrucible @ Emmanuel Building, Chesterford Research Park: 9,757 sq ft on an assignment @ £55.00 psf (fully fitted)

• Total active and upcoming office & lab market demand is c.900,000 sq ft, with c.490,000 sq ft of this for laboratory accommodation. Key active lab requirements include: Astex: 90,000 sq ft of CL2 labs; Resolian: 35,000 sq ft of CL2 labs; Vernalis: 30,000 sq ft of CL2 labs

• The highest lab rent achieved in Cambridge still remains £71.00 psf, which was a letting to CHARM Therapeutics at Babraham Research Campus, with offices achieving £65.00 psf at Brooklands, in the city centre.

• With only one laboratory building PC’d in 2024 (One Granta), there were limited options for occupiers; however, looking forward to 2025, c.425,000 sq ft of lab space is due to be delivered. These include: CamLIFE 1, 2 & 3, Sidney Sussex Building @ Chesterford Research Park, South Cambridge Science Centre and The Press, Foxton.

Whether you are a start-up spinning out of a university, an established multinational company or an investor/developer looking to access the sector, Savills Science is here to help with all your real estate needs, empowering you to reach your potential.

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