LIFE

SCIENCES
GOLDEN TRIANGLE
LAB REPORT
Q1-2023

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1 / Cushman & Wakefield / Life Sciences Golden Triangle Lab Report
OVERVIEW
The life sciences sector in the UK has been one
of considerable growth and opportunity, with the
Golden Triangle market (consisting of Cambridge,
London and Oxford) reporting some of the
strongest levels of activity. Strength in the sector
was demonstrated in Q1 2023, with 220,990 sq ft of
space transacted within the Golden Triangle.  Q1 2023 reported that overall investment into the life
A number of new requirements in excess of 50,000 sq
ft have been identified by both new market entrants
and growing indigenous companies. Some markets
have also seen requirements put on hold, however,
resulting in overall demand remaining significant but
stable at 2.86 million sq ft.
This equates to 221% of the under construction
pipeline that is due to complete within the next 18
months across the Golden Triangle. All life sciences
schemes currently under construction total 1.56 million
sq ft, of which 504,300 sq ft has already been pre-let,
amounting to 32%. A further 3.72 million sq ft of life
sciences schemes hold planning consent but have not
yet started.
Real estate supply was highlighted as a critical issue in
a recent 2022 report on the sector by the UK’s Board
of Trade; hence, securing this development is essential
for the ongoing growth of the industry.
With a heavy weight of demand, low availability, and
a substantial development pipeline, the sector looks
poised to continue its expansion over the medium
term. The clustering within the Golden Triangle,
combined with the world-leading institutions within
this market, is continuing to attract innovative
companies, while growth is also occurring across the
rest of the UK.
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KEY STATISTICS
The investment market witnessed £339.4 million of life Q1 2023 TAKE-UP
sciences assets transacted in Q1 2023, however, this is
220,990 SQ FT
likely below the quarters potential whilst investors wait
for the economic headwinds to ease before enacting
major purchases. Venture capital activity has also been
impacted by recent economic conditions; however,
sciences sector in the Golden Triangle totalled £463.8 Q1 2023 INVESTMENT VOLUME
million. This is only 6% down versus the five-year
£339.4M
average and was 4% above the figure recorded in Q1
2022. 
UK Research and Innovation (UKRI) remains a key
distributor of grant funding from the government, with
£11.4 million provided to Golden Triangle life sciences
enterprises in Q1 2023. Additionally, the government’s Q1 2023 PRIME YIELDS
4.25%
new Life Sciences Innovative Manufacturing Fund
(LSIMF) provided £17 million in funding. A further
£260 million of private sector capital was unlocked
in Q1 2023, helping secure jobs and manufacturing
projects in both medical diagnostics and human
medicines. This scheme will be welcomed by many
in the industry; however, there is strong international
UNDER CONSTRUCTION
competition. Stronger policy support would help
1.56M
secure the UK’s future as a global leader in life
sciences.
SQ FT
RENTS BY MARKET (£ PSF)
CAMBRIDGE £65.00
OXFORD £62.50
LONDON £110.00
INVESTMENT MARKET GOLDEN TRIANGLE INVESTMENT VOLUMES
£1.4 16
In Q1 2023, five investment transactions were recorded in the Golden Triangle

Investment Volume, Billions

£1.2 14
life sciences market totalling £339.4 million. This was an uptick versus the £197.7
12

Transaction Count
million transacted in Q4 2022, as well as out performing both Q1 2021 and Q1 2022. £1.0
Although interest in the market remains high, the rapid rise in interest rates has 10
£0.8
pushed borrowing costs up considerably both in the UK and globally. Consequently, 8
raising capital is more difficult and less attractive for many investors. £0.6
6
£0.4
4
Both prime and secondary yields moved out in Q1 2023 by 25 bps and 50 bps,
£0.2 2
respectively. This reflects the challenging debt market, with a higher yield required
for some assets in order to make investment viable given the increased cost of £0.0 0
capital.

The outlook for the market is positive despite some of the headwinds of H2 2022
and hanging over into Q1 2023. The strength of occupier demand as well as the Volume Count
wider growth within the life sciences sector underpins investor interest in the
Source: Cushman & Wakefield
industry. Additionally, interest rate stability is expected to return later in 2023 –
PRICING
albeit at elevated levels – which will help to pick up momentum in the market once
again as the year progresses. INITIAL YIELDS (%)
Asset Location Q4-22 Q1-23 Outlook

Prime 3.75 - 4.00% 4.25% Stable

Secondary 4.75 - 5.00% 5.50% Stable

Q1 DEAL WATCH

COMPLETED
Address Type Date Price Size (sq ft) Yield Vendor Purchaser
Westbrook Centre, Cambridge (CAM) Redevelopment Mar-23 Confidential 123,300 Confidential HSBC UBS / REEF
Grange Court, Abingdon Science Park, Oxford (OX) Conversion Feb-23 c.£5.00m 20,000 - Unknown Kadans Science Partners
BAPT / REEF/
Tribeca, Kings Cross, London (LDN) Development Feb-23 Confidential 1.15m - GIC (50% equity stake)
Blackrock
Sun Hung Kai /
17 Columbus Courtyard, Canary Wharf, LDN Conversion Jan-23 £95.00m 176,000 - GIC / Oaktree
Macquarie / DPK
Hinshelwood Building, The Oxford Science Park, OX Conversion Jan-23 Confidential 32,000 Confidential Mayfair Capital Magdalen College / GIC

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OCCUPATIONAL MARKET QUARTERLY TAKE-UP BY MARKET
450
In Q1 2023, 220,990 sq ft of life sciences space was transacted within the Golden
Triangle, 23% above Q1 2022 and 42% above the five-year quarterly average. A 400
further 180,800 sq ft of space was under offer at the close of the quarter, while there 350

Sq Ft, Thousands
is an upper estimate of 2.86 million sq ft in active requirements. This equates to 221% 300
of the under construction supply within the life sciences sector in the three peaks of 250
the Golden Triangle – where vacancy is already extremely low – putting considerable 200
emphasis on encouraging new pipeline to be brought forward within the sector. 
150
100
Cambridge reported 34,101 sq ft of transactions in Q1 2023, which was 61% below the
five-year average quarterly take-up as constrained availability constricted activity 50
and caused strong competition for limited spaces. Restricted supply also hindered 0
activity in London, where 25,500 sq ft was transacted, 26% below the five-year
average. Conversely, Oxford reported strong take-up activity at 161,389 sq ft. This
was the highest quarterly total on record for the market, driven largely by Moderna’s
145,000 sq ft AMF lease at the Harwell Campus, Oxford.  Cambridge Oxford London Under Offer

Source: Cushman & Wakefield

Prime headline rents for Cat A lab space remained stable in Cambridge, with 1000
Discovery Drive at Cambridge Biomedical Campus being under offer at c.£65.00 psf. RENTS
Oxford reported 14% quarterly rental growth and now stands at £62.50 psf, while PRIME HEADLINE QUOTING ‘CAT A’ LAB RENTS (£ PSF)
London remained level at £110.00 psf. Heavily restricted supply, the abundance of
Asset Location Q4-22 Q1-23 Outlook
demand and the strength of the life sciences sector, combined with the increased
build costs and price of debt, mean that rents are expected to continue growing. Cambridge £65.00 £65.00 Increase
Oxford £55.00 £62.50 Increase
London £110.00 £110.00 Increase
Q1 2023

COMPLETED
Address Occupier Date Rent (£ psf) Size (sq ft) Reflected Spec Landlord
Building 4000, Oxford Business Park, OX OMASS Therapeutics Mar-23 £63.00 16,000 Fitted Labs ARC
Building 900, Babraham Research Campus, CAM Charm Therapeutics Mar-23 Confidential 10,000 Fitted Labs Kadans Science Partners
178 Brook Drive, Milton Park, OX New England Biolabs Mar-23 Confidential 30,000 AMF MEPC
Harwell, OX Moderna Feb-23 Confidential 145,000 AMF ARC
The Francis Crick, Kings Cross, LDN MSD Mar-23 Confidential 10,000 TBC The Francis Crick Institute
338 Euston Road, Kings Cross, LDN Relation Therapeutics Feb-23 £90.00 5,500 Fitted Labs British Land
The Works, Unity Campus, CAM Chimeric Therapeutics Jan-23 £43.00 9,000 Fitted Labs Howard Group
Newham Building, Chesterford Research Park, CAM Flagship Pioneering Jan-23 £53.00 11,000 Fitted Labs Aviva
245 Hammersmith, LDN Resolution Therapeutics Jan-23 £90.00 8,000 Fitted Labs L&G

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SUPPLY & PIPELINE INVESTMENT INTO LIFE SCIENCES COMPANIES
As of Q1 2023, 1.56 million sq ft of life sciences space is under construction within the Venture capital activity has also been impacted by recent economic conditions, however
Golden Triangle, of which 504,300 sq ft or 32% is already pre-let or under offer, with the Q1 2023 reported that overall investment into the life sciences sector in the Golden
majority of this space expected to complete within the next three years. A further 3.72 Triangle totalled £463.8 million. This is only 6% down versus the five-year average and
million sq ft has received planning consent. This considerable pipeline will help to ease was 4% above the figure recorded in Q1 2022. Cambridge attracted £135.8 million which
existing demand pressures in the market, however, the continuing growth of the sector was 26% above the five-year quarterly average for the market, while London and Oxford
means that significant requirements are expected to persist in the future – indicating reported £211.3 million and £116.7 million which was 15% and 16% down on their respective
further supply may be needed. average quarterly figures.

Additionally, the considerable inflation in the cost of construction due to worker Last year we saw a notable uptick in Big Pharma M&A activity, including Novartis’
shortages and material price rises, combined with the sharp increase in interest rates acquisition on Gyroscope (£1.1 billion), Pfizer buying ReViral (£400 million) and Gilead’s
driving the cost of capital up, has meant that developments are taking longer to get acquisition of MiroBio (£357 million). M&A activity continued into the first quarter of
underway – even those which have already been consented. These pressures are 2023 with Thermo Fisher completing their £2.25 billion acquisition of The Binding Site in
expected to become less acute as developers adjust to the new economic environment January. We expect more transactions to occur in the coming year as larger companies in
over the medium-term, with the strength of the life sciences sector also helping to speed the sector look to increase their pipeline of drugs and divest non-core assets.
up this process.
GOLDEN TRIANGLE KEY DEVELOPMENTS UK LIFE SCIENCES INVESTMENT ACTIVITY
Scheme Size (sq ft) Landlord Completion Investment Type Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 YOY
1000 Discovery Drive, Cambridge 100,000 Prologis Q3-23 VC £654m £778m £550m £575m £560m -14%
Biomedical Campus, CAM
IPO £3m £0m £6m £0m £0m -99%
Iversen Building, The Oxford Science 89,000 Magdalen College / GIC Q3-23
Park, OX M&A £2.14bn £702m £1.16bn £314m £2.34bn 9%

One Granta, Granta Park, CAM 122,000 Biomed Q3-24

5-10 Brandon Road, Kings Cross, LDN 88,000 Kadans Science Partners Q3-24
The Refinery, Hammersmith, LDN 97,000 ARC Q3-24
Apex Tribeca, Kings Cross, LDN 86,000 BA Pension Fund / GIC Q4-24

GOLDEN TRIANGLE LAB PIPELINE BY PLANNING VENTURE CAPITAL INVESTMENT INTO

STATUS & PROJECTED COMPLETION UK LIFE SCIENCE COMPANIES
£1.4
3.0
2.5 £1.2

VC Raised, Billions
Sq Ft, Millions

2.0 £1.0
1.5 Pre-Planning £0.8 Cambridge
1.0 In-Planning £0.6 Oxford
0.5
Outline Planning £0.4 London
0.0
Planning Approved £0.2
Cambridge

London

Cambridge

London

Cambridge

London

Cambridge

London
Oxford

Oxford

Oxford

Oxford

RoUK
Under Construction £0.0

2023 2024 2025 2026

Source: Cushman & Wakefield Source: Cushman & Wakefield

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CONTACTS

Michael Aston Jamie Renison

Partner International Partner
Head of Life Sciences, EMEA Head of Life Sciences Agency
M +44 (0) 7736 125 220 M +44 (0) 7778 052 594
michael.aston.cushwake.com jamie.renison@cushwake.com

Harry Blanshard Nick Blevins

Associate Partner
Life Sciences Life Sciences
M +44 (0) 7385 950 543 M +44 (0) 7885 271 302
harry.blanshard@cushwake.com nick.blevins@cushwake.com

Rory MacGregor Kiran Patel

Associate Associate Director
Life Sciences Research & Insight
M +44 (0) 7710 302 455 M +44 (0) 7407 825 580
rory.macgregor@cushwake.com kiran.patel@cushwake.com

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