Take-up of office and lab space in Oxford fell from 261,000 sq ft in 2022 to 211,000 sq ft last year, according to new data from Bidwells.
Demand also fell from 505,000 sq ft in 2022 to 414,000 sq ft in 2023, with larger space requirements from science and technology occupiers falling due to a reduction in venture capital investment and wider macroeconomic headwinds.
Bidwells said it expected a fall in lab vacancy rates this year following a temporary spike at the end of 2023 after new space was delivered to the market.
Prime rents for lab space increased to £76.50/sq ft last year with rents for prime office space in Oxford hitting a new high of £60/sq ft.
Robert Beatson, partner and head of office and laboratories Oxford at Bidwells, said: “As long as Oxford continues to be a world leading centre of excellence for science and as the pace of medical innovation and drug discovery continues, commercial space in the city will attract significant, long-term occupier demand from participants in these industries.
“Oxford continues to be a world-leading life sciences ecosystem and is supported by funding from organisations such as Oxford Science Enterprises, though further support, such as the proposed measures announced by Labour recently, would be much welcome with a top-end decline in venture capital funding leaving British scale-ups vulnerable to M&A from international market players.”
