Take-up of purpose-built lab space in the ‘Golden Triangle’ soared in Q1, with 220,990 sq ft transacted across Oxford, Cambridge and London, according to data from Cushman & Wakefield.
Q1 activity was 23% up on the same period last year and 42% above the five-year quarterly average. Oxford accounted for 161,389 sq ft – a new record – Cambridge accounted for 34,101 sq ft of transactions and in London 25,500 sq ft of space was taken.
The quarterly figure was boosted by Moderna taking 145,000 sq ft at Harwell Campus in Oxford (pictured).
According to Cushman & Wakefield, there is as significant supply demand imbalance in the Golden Triangle at the moment with active requirements for lab space totalling 2.86m sq ft, which is equivalent to 221% of the supply due to complete in the next 18 months.
Of the 1.56m sq ft of space currently under construction 32% is already pre-let. A further 3.72m sq ft is in the development pipeline having secured planning consent.
Jamie Renison, head of life sciences agency UK at Cushman & Wakefield, said: “Demand for lab space in the Golden Triangle has maintained its momentum in the first part of the year, with a record level of space transacted and under offer. Despite the strong start, and the weight of capital looking to deploy into the sector the supply constraints remain a handbrake on expansion.
“The value of planning consent has never been greater as we anticipate delivery of schemes being delayed whilst the planning system takes time to process applications. If the UK is going to become a science and tech superpower, we need the real estate to facilitate that.”
Kiran Patel, from Cushman & Wakefield’s research and insight team, added: “The supply demand equation is stark. Just 22,000 sq ft of new space was delivered in the Golden Triangle during the first quarter which was a tenth of the space transacted. This is limiting take up in markets purely due to capacity.
“Cambridge’s quarterly volume was 61% down on the five year quarterly average for this reason – the limited space available is seeing intense competition from occupiers desperate to secure space. Oxford, meanwhile, thanks largely to the Moderna deal, posted its highest volume on record.”
