Our latest Life Sciences Lab Report on the UK's Golden Triangle. The report looks closely at investment volumes, leasing take up, lab supply and pipeline, and investment into life sciences real estate across Cambridge, Oxford and London.
Strong active demand requirements persisted in the life sciences occupational market across the Golden Triangle in Q2 2023 despite take-up decreasing on the quarter.
This decrease in the volume exchanged was attributed to the supply shortage of good quality stock, while pressure on early stage VC-backed companies to cut costs also impacted transaction levels.
Real estate investment activity was down in Q2, with the successive interest rate rises challenging viability models and weighing on pricing.
The underlying strength in the growing sector and the volume of requirements in the market paint a positive picture ahead for activity and rental growth – provided the stock necessary to fuel growth is brought forward – while the investment market is looking for stability and eventual easing in the base rate to bring renewed momentum to activity levels.
Key Takeaways:
- Golden Triangle investment volumes reached £381 million in Q2 2023;
- Leasing take-up in the Golden Triangle for the second quarter reached 59,300 sq ft;
- Cambridge accounted for 74% of space transacted in Q2 at 44,000 sq ft;
- Transaction volumes in all three markets were heavily restrained by the shortage of supply;
- Early stage VC-backed companies were under increased pressure to cut costs, also impacting transaction levels;
- Active requirements in the market equate to 34% of the total existing stock;
- There is 1.8 million sq ft of life sciences space under construction;
- A further 5.4 million sq ft has planning consent;
- Venture capital investment in Golden Triangle life sciences companies totalled £344.2 million in Q2.
