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Investments in commercial real estate in the UK life sciences sector in the Golden Triangle, an area straddling London, Cambridge and Oxford and a key market for life sciences and innovation in the UK, will reach 496 million in the first quarter of 2023. over a million pounds.
According to Knight Frank’s research, this is the highest first quarter investment total in the life sciences sector and the highest since the fourth quarter of 2021.
Notable deals during the period include 443,000 square feet of lab space in Tribeca, King’s Cross, in collaboration with c. Leaf Group.
A joint venture between GIC and Oaktree also purchased 17 Columbus Courtyard in Canary Wharf from Macquarie. The £100m fund shows the diversity of capital looking to deploy equities within the sector.
London accounts for the largest share of investment activity in the Golden Triangle, accounting for 79% of the total. This represents London’s growing role as a hub for Europe’s leading science companies, particularly in the King’s Cross, White City and Canary Wharf submarkets. Significant new developments are underway or have recently been completed in these areas to provide Grade A lab and office space.
Emma Goodford, Head of Life Sciences and Innovation at Knight Frank, said: Also venture capital.
“The government’s science strategy and growing public awareness of the importance of life sciences research and development post-pandemic have facilitated the formation of a series of new entrants, pushing the long-time key players in the market to new heights. This rapid growth has drawn attention to new investment and development projects in the Golden Triangle, which is reflected in record Q1 investment volumes.
“The Oxford and Cambridge life sciences tenant market continues to grow and outpace new scheme offers, creating a severe shortage of Grade A lab and office space in the UK’s most demanding markets. .
“While it is encouraging that the Government is prioritizing the UK’s potential as a major global hub for life sciences, it is encouraging that more attention is being paid to encourage the development and relocation of fit-for-purpose modern life sciences labs and office space. It is important that much is done: the sector will have to capitalize on and respond to record levels of demand, and equally importantly, some Experienced capital to support scaling your business.”
The Golden Triangle’s life science lab footprint totaled 86,876 square feet in the first quarter, while the area’s life science office footprint totaled 62,277 square feet during the same period. Overall, Q1 utilization was 127% higher than his 2022 same period. Major deals include New England Biolabs, a US-based producer and supplier of enzymes, signing its first overseas manufacturing and product development facility on a 30,000-square-foot unit. At Milton Park, Oxfordshire. ADC Therapeutics, an oncology-focused biopharmaceutical company, has also expanded its presence at his I-HUB in the White City, adding that he acquired 12,000 square feet. 145,000 square foot production facility in Harwell. Plan approval is required.
Despite this increase, Golden Triangle patronage is severely limited by the lack of available space. Knight Frank estimates that Cambridge currently has a demand for over one square foot of lab space in the area. 24,000 square feet currently available. The current development pipeline indicates that this level of demand will not be met until at least 2025/26, with similar demand and supply imbalances in London and Oxford.
This critical supply shortage of suitable space is likely to be exacerbated by the sector’s continued growth over the next few years. 283 new life sciences companies were established in the UK in Q1 2023. This is the highest quarterly number ever. With the Golden Triangle’s reputation as a world-leading market for innovation and life sciences R&D, many of the newly formed entities are expected to target the region’s office and lab market. , further limiting the supply available without new development activity being wiped out.