The life sciences sector continued to experience rapid expansion in 2022, with underlying growth trends luring both new and seasoned investors into the market. At the beginning of 2022, Big Pharma reportedly had more than $1.7tn (£1.4tn) in dry powder set aside for the expansion of their IP pipeline. However, 2022 turned out to be a rather mild year for M&A activity, with $65bn (£54bn) in transactions among the top 10 pharmaceutical companies. The amount of venture capital raised was also lower than the record year of 2021, yet it was still 22% higher than 2020 levels.
Looking ahead, the demand from biotech occupiers for lab space remains strong and will continue to outstrip supply. We expect further delays in new starts, compounding the imbalance, despite a number of schemes reportedly forecast for delivery in 2025/26.
Inside our latest Life Sciences Lab Report you’ll find insight on investment volumes, leasing take up, lab supply and pipeline, and investment into life sciences real estate across Cambridge, London, and Oxford throughout 2022.
Key Takeaways:
- Investment volumes reached £2.4bn in 2022;
- Leasing take-up for the year in the Golden Triangle reached 635,866 sq ft;
- London accounted for 39% of all life science leasing activity in the Golden Triangle;
- A lack of purpose-built life sciences space limited leasing volumes in 2022;
- Within the core Golden Triangle locations, supply increased by 350,000 sq ft in 2022;
- It's not until 2025/26 that we expect to see approximately four million sf ft of supply delivered;
- Level of venture capital raised across UK life sciences companies, exceeded all years except 2021.
