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Cut through the noise. At the moment there’s a plethora of topics that all have the ability to drive uncertainty through real estate markets. Whether it’s Trump’s tariffs, spiking gilt yields or National Insurance  contributions, the headlines can make for difficult reading. However, from a real estate perspective, 2025 is shaping up to be a positive year with investors on the front foot looking to capitalise on re-priced assets as the next cycle begins.

With inflation stabilising, DTRE expects the Bank of England to cut rates by 100 bps this year, leaving the Bank Rate at 3.75% by the end of 2025, and these interest rate cuts will provide further liquidity across real estate with pricing and valuations supported by the reduced cost of debt.

 From an occupational perspective, the post-Budget souring of sentiment and resultant downturn in consumer and PMI surveys is expected to be more of a soft-patch rather than a sustained slowdown. As a result, DTRE expects occupier demand to rebound across all the traditional real estate asset classes with rents supported by the supply and demand dynamics that have been further exacerbated in recent times due to rising construction and financing costs.

The logistics sector enjoyed a strong finish to 2024 across both the occupational and capital markets, and despite macro headwinds that momentum has carried on into the early weeks of 2025. In the occupier markets, 2024 was a strong year with take-up of Big Box units (100,000 sq ft) totalling 28.6m sq ft – 13% up on 2023’s total. That total was reached largely without any help from large e-commerce players, demonstrating the market’s depth beyond Amazon and pure-play online retailers.

Third-party logistics providers, grocers and physical retailers were active throughout 2024. While Amazon will be active once more in 2025 with several requirements in the market, we expect the big supermarkets, defence and aerospace-led contracts, and selective high-end manufacturers to be the major drivers of take-up this year.

In the capital markets, 2024 saw £8bn of industrial and logistics assets transact, but that total was reached primarily in the absence of any large pure-logistics portfolios to boost volumes. This year, we expect to see a continuation of the same themes, with investors targeting logistics and urban/multi-let assets with reversion potential. However, as we move through the year and debt becomes more accretive and supportive to valuations, we expect to see some larger portfolios trade.

We’re seeing confidence return to the science and technology market following the second-best year for fundraising on record. Many companies have already resumed their searches for space and started to make new commitments, with a particular surge in demand for larger requirements. We expect this positive momentum in the leasing market to continue through 2025, and drive capital markets activity, too.

Rumours have also begun to swirl around growing private equity interest in UK pharma and pharma services, with several players said to be deep into due diligence. Our expectations are high that these private equity speculations will materialise, providing a further boost to one of the country’s fastest-growing industries.

And finally, while Reeves’ plans for the Oxford- Cambridge Arc are a positive signal from government and should boost market confidence, similar commitments have been made before, in 2017 – so we won’t be holding our breath. Meeting the required commercial and residential capacity in the Arc will be impossible if the existing planning constraints remain in place.

The real test will come in the Planning and Infrastructure Bill. To make meaningful inroads, Reeves will need to extend her ‘coalition of builders’ to local councillors and communities. However, if she is successful in her endeavours, it could require delivery of in excess of 80m sq. ft. of commercial workspace.

With investment in UK living totalling £14bn in 2024 – c.5% up on 2023 – private equity firms and pension funds are increasingly allocating capital to single-family housing, favouring them for their ease of construction and appeal to stable, long-term tenants. We believe that this sustained investment will drive a divergence in the single-family housing market, splitting into two distinct approaches.

On one side, traditional housebuilders will continue to focus on managing excess stock to address slowdowns in new-build sales. These housebuilders benefit from bulk sales through forward funding agreements, which provide them with liquidity and enable them to fund essential infrastructure for their developments.

The other side will feature purpose-built communities, combining multi-family housing principles with horizontal layouts, situated on brownfield land in well-connected urban hubs. With developers, contractors and funders working together in a tri-partite model, these amenity-rich developments will aim to attract renters choosing convenience and lifestyle over ownership.

Against a backdrop of NHS strikes and a national waiting list estimated at 8 million people, demand for private healthcare spaces will continue to rise with service providers looking to accommodate the rapid growth in the self-pay market and a surge in private medical insurance uptake.

For investors, the sector provides stability through long-term, often government-backed income streams. Index-linked leases and operators’ diversified revenue models – balancing self-funded and publicly funded care – enhance resilience, positioning healthcare as a lower-risk investment compared to other industries.

In 2025, we expect private healthcare to outperform other healthcare sub-sectors, fuelled by structural drivers such as the UK’s ageing population and chronic undersupply in senior living and medical office spaces. These factors will sustain demand across these critical segments, solidifying healthcare’s position as a reliable and attractive investment opportunity.

Retail is shaping up to be the ‘surprise sector’ of 2025, with rents climbing as retailers return to high streets and shopping centres. Driven by retail warehousing, we’re expecting institutional interest to reach its highest level in five years as consumer and retailer confidence strengthens.

Prime shopping centres and high street parades will still remain a focal point, while affluent suburban areas will see growth in smaller, convenience-driven retail formats to cater to localised shopping needs. We’re also expecting to see institutional investors continuing to revisit second tier shopping centres, sparking a liquidity rebound.

Experiential retail will continue to reshape the sector, with retailers leaning into immersive, in-store experiences to engage consumers. Demand for adaptable spaces will be driven by pop-ups and interactive events aiming to boost footfall and differentiate physical stores.

The contrast in leasing demand between best-in-class Grade A offices and lower-quality Grade B stock will continue, with many landlords of problem assets needing to make challenging decisions between cutting their losses, investing heavily to retrofit and refurbish, or exploring changes of use (e.g., PRS, BTR or hospitality) within the confines of planning legislation. A critical pinch point is already emerging, driven by rising development costs over the past five years, which have created a significant disparity between the demand for and supply of premium office spaces. As a result, rental growth is expected to continue, but again heavily weighted towards the sparse, premium stock.

As for capital markets, activity is likely to stay muted as long as interest rates remain high and global political uncertainty persists. While market sentiment has slightly improved, tangible signs of recovery have yet to materialise. Well-let Grade A offices in London and the Big Six should continue to offer attractive opportunities, but current owners’ reluctance to sell, due to loose yields, will likely limit transaction volumes.


That said, we anticipate some investors will focus on acquiring vacant possession buildings over the next 12 months, with plans to transform them into modern, top- tier workspaces. These upgraded assets will be well- positioned to meet occupier demand for sustainable, adaptable and high-quality office environments.

DTRE 2025 Outlook

Total science and technology take-up in Cambridge reached 99,300 sq ft across 14 deals by the end of 2024, comprising of 75,800 sq ft of laboratory space and 23,500 sq ft of mid-tech space. This represents a 65% decline year-on-year from 2023, and a 39% drop compared to the five-year average (2019–2023), as the post-COVID constraints on venture capital investment continued to bite, and affect occupier confidence.

The largest deal of the year involved Welbeck Health Partners, who secured 31,000 sq ft at the Orion Building on Howard Group’s Unity Campus. Another notable transaction was Vianautis taking 10,800 sq ft at Cadence also on the Park, with an additional 8,400 sq ft already exchanging there early in 2025.

At the close of Q4, 57,900 sq ft of laboratory and mid-tech space was under offer, with 20% of these transactions already completing in early 2025.

Turning to supply, the total available up-and-built laboratory space in Cambridge reached 224,400 sq ft by year-end, a 159% increase year-on-year, driven by projects like One Granta, which completed in 2024 and remains largely vacant. Despite a subdued year in take-up, and increased stock coming to market, Cambridge maintained the lowest vacancy rate among the Golden Triangle markets, reflecting its resilience and maturity.

DTRE is tracking 667,500 sq ft of total named demand, with 240,000 sq ft classified as active. By count, 13% of demand was for spaces below 10,000 sq ft, with the majority of requirements falling within the 10,000–30,000 sq ft range and the average requirement size being 26,500 sq ft. This highlights Cambridge’s standing as a mature science and technology market, bolstered by an established scientific ecosystem.

38 life science and biotech firms headquartered in Cambridge raised a total of £610 million in 2024 through 111 fundraisings and grants, reflecting a 15% decrease year-on-year. Despite this, the number of deals increased by 3%, a positive signal of market activity and increased investor confidence.

Laboratory take-up in London reached 30,400 sq ft across 15 deals in 2024, with all transactions for spaces under 5,000 sq ft. The largest wet laboratory lease was Baseimmune’s 3,350 sq ft at LBIC Apex, while 4,900 sq ft of dry lab space was taken by a confidential AI company at Caledonia House.

Although take-up was down 43% year-on-year and 62% below the five-year average (2019–2023), 107,000 sq ft was under offer at year-end, which, if completed in 2025, would exceed the five-year average by 33%.

Total demand for laboratory space reached 403,900 sq ft, with 247,700 sq ft categorised as active demand. Reflecting London’s status as the nascent science market, 63% of demand by count was for spaces below 10,000 sq ft, further segmented as 22% below 2,000 sq ft, 20% between 2,000–5,000 sq ft, and 22% between 5,000–10,000 sq ft.

As of year-end, 223,300 sq ft of laboratory space was available, with the bulk concentrated in the Knowledge Quarter, driven by the first wave of purpose-built labs reaching practical completion. In 2025, a further 

1 million sq ft of planned development is set to be delivered within the Knowledge Quarter, including Apex and Reflector at Tribeca, and Pioneer’s Victoria House.

Venture capital into London-based companies reached £1.18 billion in 2024 across 196 fundraisings and grants, accounting for 53% of the Golden Triangle’s total. This figure dramatically surpassed the five-year average (2019–2023) of £694 million and was the second best year on record, just 3.7% down on the COVID peak. With 72% of funding raised in the latter half of the year, we expect this momentum to carry forward into 2025 and revitalise on-hold demand for laboratory space.

Oxford led the Golden Triangle for laboratory take-up in 2024, with 190,100 sq ft occupied by science and technology firms and an additional 18,200 sq ft of mid-tech space transacted. While this marked a 7% year-on-year decline, it was 12% above the five-year average (2019–2023) of 186,500 sq ft, exceeding my earlier projections by 9%. Furthermore, 53,900 sq ft of laboratory space and 12,000 sq ft of mid-tech space was under offer at year-end, with 25,500 sq ft already transacted in 2025.

The largest deal of the year was Novo Nordisk’s lease of 61,000 sq ft at The Iversen Building on The Oxford Science Park, accounting for 29% of total take-up and ranking as Oxford’s third-largest laboratory deal since 2018, behind the Moderna deal in 2023 and Oxford Biomedica’s HQ lease in 2022.

At the close of 2024, 205,400 sq ft of laboratory space was available, with Building One at Begbroke Science Park contributing 63,900 sq ft to the total.

Demand for laboratory and mid-tech space in Oxford stood at 636,800 sq ft, with 373,000 sq ft categorised as active demand. Smaller units were prevalent, with 59% of active demand for spaces below 10,000 sq ft, while 33% targeted spaces between 10,000–30,000 sq ft. This demand pattern underscores Oxford’s position as the middle child of the Golden Triangle markets, blending relative maturity with growth potential.

Venture capital raised by Oxford-headquartered life science and biotech firms totalled £419 million in 2024, a 12% year-on-year decline. Despite this, Oxford has consistently recorded the lowest five-year average of venture capital raised among Golden Triangle markets (£628 million). Encouragingly, 36% of the total was raised in Q4, signalling a potential resurgence in fundraising activity throughout 2025.

Science & Technology Report: Golden Triangle - Q4 2024

As of Q3 2024, laboratory take-up in Cambridge has reached 94,800 sq ft, with 42,300 sq ft transacted in this quarter alone, marking a 12% increase compared to the Q3 five-year average. At the close of the quarter, an additional 10,000 sq ft remains under offer at Cadence, Unity Campus.

Three key transactions contributed significantly to take-up: Immaterial secured 12,500 sq ft of mid-tech space at Accelerator Park, Sawston, and Biocrucible completed the assignment of AbCellera’s lease at the Emmanuel Building at Chesterford, covering 9,800 sq ft.

Overall, laboratory-led demand in Cambridge has reached 899,500 sq ft. Of this, 450,000 sq ft is classified as active demand, down slightly from last quarter as companies continue to wait for funding. The increase in overall demand, however, is mainly driven by larger requirements entering the market in Q3, reflecting Cambridge’s growing appeal to larger occupiers and solidifying its status as an established market.

Vacancies in Cambridge have however increased slightly due to the completion of developments such as 1 Granta Park. As of the close of Q3, 211,200 sq ft of available up-and-built laboratory space is on the market. Despite this rise, Cambridge maintains the lowest vacancy rate compared to Oxford and London, highlighting the resilience and maturity of the Cambridge science and technology market.

To date, Cambridge-based life science and biotech firms have raised £258 million through 67 fundraisings and grants in 2024. While total venture capital raised remains subdued when compared to recent years, the number of fundraisings aligns closely with the five-year average, maintaining confidence that raisings are being achieved, though of smaller amounts.

At the close of Q3 2024, laboratory take-up in London totalled 18,700 sq ft, with three deals having been completed during the quarter. Laverock secured 3,000 sq ft at LBIC Tribeca, as Baseimmune also took 3,350 sq ft of space there, and Myricx Bio acquired 2,000 sq ft at 20 Water Street.

London’s laboratory market remains in its growth phase, with deals so far this year focussing on fully fitted CL2 laboratory spaces under 5,000 sq ft. This reflects ongoing demand from early-stage companies and a developing ecosystem. Encouragingly, there is positive momentum, with an additional 90,600 sq ft of laboratory space under offer by the end of September. Assuming these deals complete before year-end, London will exceed its five-year average take-up (2019-2023) of 99,400 sq ft by 10%.

Total demand for laboratory space in London has reached 785,600 sq ft, with 363,200 sq ft classified as active demand. Notably, 75% of total demand is for space under 10,000 sq ft, reflecting the market’s focus on emerging companies seeking smaller, fully fitted laboratories. However, in recent months, there has been a significant rise in demand for larger spaces, with requirements for units ranging from 10,000 to 30,000 sq ft re-emerging in the market, making up 17% of demand.

This quarter saw a key development with Eli Lilly’s requirement resurfacing and focusing on Kings Cross. Although their space needs have reduced from 75,000 sq ft to 30,000 sq ft, this resurgence highlights the growing demand and improving market confidence in the sector.

A more favourable venture capital environment is fuelling this activity, with £1,026 million raised so far this year by life science and biotech firms headquartered in London, spread across 151 fundraisings and grants. This figure already represents a 48% increase over the five-year average of £694 million. Notably, London-based companies have contributed 66% of the total venture capital raised in the UK’s life science “Golden Triangle” in 2024.

However, despite the robust demand and positive funding landscape, 266,700 sq ft of laboratory space remains available, as the first wave of purpose-built lab buildings continues to enter the market.

In 2024, 103,100 sq ft of laboratory space has  transacted in Oxford, with a further 89,600 sq ft under offer. Notably, when we exclude the Moderna deal at Harwell in 2023, which comprised 65% of total take-up, take-up by the end of Q3 2024 is already 30% higher than the full year prior. If all current deals under offer are completed by year-end, Oxford is projected to surpass its five-year average take-up (2019-2023) by 3%. 


Significant deals include Nucleome securing 17,100 sq ft of fully fitted laboratory space at Inventa and Yellowstone completing 8,100 sq ft at Building 4100, ARC Oxford.

Demand for laboratory space in Oxford has reached 845,300 sq ft, with 503,600 sq ft classed as active demand. New large requirements, specifically those exceeding 50,000 sq ft, now represent 37% of active demand by area (185,000 sq ft).

Despite the strong demand, Oxford still has 255,000 sq ft of available laboratory space, mostly located in out-of-town science parks. In the city centre, Inventa remains the sole source of available laboratory space.

Oxford-based life science and biotech firms have raised £266 million across 43 fundraisings and grants in 2024. Similar to Cambridge, venture capital in Oxford remains limited, falling short of the five-year average of £628 million. However, the emergence of larger requirements in the market does indicate a gradual recovery in market confidence.

Science & Technology Report: Golden Triangle - Q3 2024 

Partner
Head of Science & Technology

Matt Smith

20 Sep 2024 | by Simon Glenn, Matt Smith

Problems of oversupply are not an issue in the UK

Matt Smith and Simon Glenn at DTRE respond to Green Street News columnist Oliver Shah’s recent warning that the sharp jump in US lab vacancy rates should give UK developers pause for thought.

Oversupply, rising vacancies and funding challenges: there’s no doubt that the US life sciences real estate market is spluttering. Naturally, given our unhealthy tendency to compare ourselves to the US, some argue that the UK’s own sector should brace for a downturn.

However, though we may be biased, we have reason to believe that a sickly Boston need not raise red flags – the UK has been shaped by very different market dynamics, and possesses unique strengths. The Golden Triangle is positioned to thrive, bolstered by world-class academic institutions, growing demand for healthcare solutions and an industrial growth strategy with life sciences at its heart.

It is true, particularly in key hubs like Boston and San Francisco, that oversupply has driven up vacancy rates and created concerns about the sustainability of demand. This is a consequence of rapid, unchecked investment and expansion in those markets. In typical American fashion, they wanted bigger and better, yesterday.

While some investors also got overexcited about UK life sciences, the market over here operates on different fundamentals, maintaining a more measured approach to growth. After all, Brits to tend to show more reserve.

As in classic development cycles, supply – by virtue of the time taken to build – has lagged demand. And, while there was no doubt a glut during the Covid-19 pandemic, the UK’s planning system, archaic or not, has limited speculative overdevelopment. By filtering planning permissions, only viable projects have progressed, while others have been paused – effectively turning off the tap.

For occupiers, the VC funding challenges seen in the US should also be less of a concern on this side of the pond, where private investment has been matched with successive governments strongly committed to the industry.

Life sciences sits at the heart of Labour’s growth plans, offering many an incentive for companies developing next-gen healthcare solutions. Moreover, despite a year-long clinical trial decline, a new £400m public-private collaboration, VPAG, is set to reinvigorate pharmaceutical testing.

Perhaps most crucially, though, the UK life sciences sector is not solely profit-driven. The NHS is the crown jewel of socialised healthcare: it’s our sacred cow. Life sciences, and its ability to reduce costs through preventative medicines, is a critical part of the government’s mission for an NHS fit for the future. This altruistic foundation – where public health needs outweigh short-term financial gain – fosters a more resilient market, less prone to the boom-and-bust cycles seen in the US.


Life sciences sits at the heart of Labour’s growth plans

A further compelling driver of UK life sciences is demographic shift. In the past 40 years, the number of people in England aged 50 and over has increased 47% to more than 21 million – almost 40% of the population.

It’s not rocket science: this will continue to create unprecedented demand for healthcare services. Many a top doctor has warned of the impact a lack of medical innovation could have on the NHS and society at large.

For example, we can expect a sharp rise in chronic diseases, fuelling demand for pharmaceutical developments, biotechnology and medical research – all of which must be facilitated by physical infrastructure. 


While Boston has MIT and Harvard, the core of the UK’s life sciences market is its unmatched access to multiple top-tier institutions.

When it comes to research and discovery, the Golden Triangle boasts four universities in the global top 10, and 26% of UK graduates come from STEM courses, compared with 19.6% in the U.S. This academic strength sets the Golden Triangle apart from many US markets.These top universities also provide access to funding, both public and private, ensuring that companies in the UK are well capitalised and can grow without facing the liquidity crises seen in the US.

Life sciences, like AI, is here to stay, poised for steady and sustainable growth


Only recently, Nvidia’s share price plunged almost 10%, dragging a basket of chip stocks with it. The drop reflected broader economic caution, not a lack of belief – AI has already been integrated into everyday life, cementing its long-term potential.

The same could be said for life sciences which, like AI, is here to stay, poised for steady and sustainable growth. According to Oxford Economics, the sector outperforms many others, with demand resilient to economic fluctuations. This demand, led by the NHS, is why UK pharmaceutical output is projected to grow by an average of 1.3% annually from 2024 to 2026.

We also can’t forget that lab space is not only critical for life sciences – it’s essential for battery tech, green energy, planetary health, plastic alternatives, and many other cutting-edge industries. These all require specialised spaces to thrive, and will continue to need more of it.

While the US market may be facing challenges, structural weaknesses are not necessarily mirrored in the UK. Our market is built on different dynamics, driven by long-term demand for healthcare solutions, world-class research institutions and strong government support.

Comparing ourselves to our American friends is an easy, but cheap, argument to make. Look more closely and you’ll see it’s a different sport entirely.

America's life sciences woes won't infect the UK market

5 Things You Need to Know About Science & Technology in the Golden Triangle

Laboratory leasing activity across Cambridge in the opening half of the year reached 52,500 sq ft, falling 40% from the highest H1 recorded in 2023 (87,400 sq ft) but positively remaining 20% above the H1 5-year average (41,600 sq ft).

Take up was led by lettings at Unity Campus as Welbeck Health Partners leased 31,000 sq ft at Orion, and ViaNautis (Soma Serve) secured 10,800 sq ft of fitted space at Cadence, also on the park.

At the close of H1, there was a further 31,000 sq ft under offer which we expect to complete in Q3.

Demand for laboratory space remained robust in Cambridge, with 783,000 sq ft of named demand at the close of H1. Of this, 478,500 sq ft is active demand and 304,500 sq ft is upcoming demand, with the majority temporarily put on hold due to wider macroeconomic uncertainties.

We have seen an increase in 50,000 sq ft + requirements coming live, more than in the rest of the Golden Triangle, now representing 38% of demand. Importantly, we are also still seeing the growing demand for smaller, fully fitted laboratories by occupiers looking to take turnkey space, with requirements of up to 20,000 sq ft representing 20% of demand.

This change in demand profile underscores the importance of providing a variety of fit out specs to appeal to the broadest range of demand/occupiers.

At the end of H1 there was 151,000 sq ft of available up-and-built laboratory space, with the majority located within the southern Cambridge cluster across Granta Park, Babraham Research Campus, The Press, and Unity Campus.

Excluding the southern cluster, there is practically no up-and-built laboratory space available for immediate occupation in Cambridge, maintaining a strong supply-demand imbalance.

In response to this supply-demand imbalance, there is 4.7 million sq ft of laboratory-led space due to be delivered by the end of 2028. Of this, 17% (799,600 sq ft) is currently under construction or being repurposed which will help alleviate the supply restraints in the short term and support leasing activity across the next 12 months. 18% of the pipeline however is still subject to planning.

With demand continuing to outweigh supply, rental growth prospects remain strong, with several schemes providing fitted space quoting over £70.00 per sq ft.

£119 million was raised by 46 life science and biotech companies based in Cambridge across H1, a 28% decrease on venture capital raised in H1 2023.

Whilst the sluggishness of venture capital funding has persisted into H1 2024, the wake of the election and the improving economic landscape should recover sentiment and motivate investment into these companies. It will also encourage companies that have successfully raised to satisfy their space demands.

Since 2019, Cambridge-based companies have collectively raised £3.6 billion - capital that will be directed into real estate once the climate steadies.

Laboratory take up in Oxford throughout H1 2024 reached 77,100 sq ft, 22% above take up across Cambridge and London combined.

At the end of June, there was a further 29,800 sq ft of laboratory space under offer, with 57% having already transacted at the beginning of Q3. If the remainder of this space completes, take up in Q3 looks to be in line with the 5-year average take up across the third quarter (31,500 sq ft).

Take up in H1 was led by the Ellison Institute leasing 27,800 sq ft at Winchester House on The Oxford Science Park, and OrganOx taking 17,700 sq ft of space on an assignment at Building 3500, ARC Oxford.

Further leasing activity in the second half of the year will be driven by the 451,200 sq ft of named demand for laboratory space, of which 332,000 sq ft is active. Of this demand, 48% is for space smaller than 20,000 sq ft, with 38% for space from 20,000-50,000 sq ft, and 13% for space over 50,000 sq ft.

At the end of H1 there was 282,000 sq ft of available up-and-built laboratory space in Oxford, with just 45,400 sq ft of this in the city centre, and the remainder across Milton Park, Abingdon Science Park, The Oxford Science Park, and Begbroke Science Park.

There is 898,600 sq ft of space currently under construction/refurbishment, with 23% (205,000 sq ft) of this space already accounted for.

Of the 4.8 million sq ft we are tracking to be delivered by the end of 2028, 31% (1.5 million sq ft) is to be built in the city centre.

Fitted laboratory rents in Oxford have increased to a new headline rent of £82.50, achieved in Q1 at the Sherard Building on The Oxford Science Park as Oxford Nanopore leased 13,000 sq ft of fully fitted space.

32 Oxford-based life science and biotech firms raised £263 million through fundraisings and grants in H1 2024, reaching 9% above the pre-covid full-year 5-year average. Overall, Oxford-based venture capital was the most consistent out of the Golden Triangle, falling the least from the total raised in 2023.

Despite this, Oxford-based companies have similarly echoed the theme seen across the wider Golden Triangle in their hesitancy to exercise their capital on real estate, with many choosing to remain in their current space until the macro environment settles before expanding or upgrading.

Since 2019, Oxford-based companies have raised £3.4 billion, which will slowly be released as sentiment improves and several tenants that have previously put expansion plans on hold reactivate their search.

London laboratory take up slowed in the first half of 2024 with 10,300 sq ft transacting, 70% below H1 take up last year despite Q1 2024 being 42% above H1 2023 take up (7,300 sq ft). This leasing slowdown can be attributed to the relatively nascent state of the London market and the high quoting rents.

London is the most embryonic of the Golden Triangle markets, so with national and economic unrest and uncertainty over the past year, it has not been able to rely on its deep-rooted and pre-existing markets to the same extent that Cambridge and Oxford have been able to, hence experiencing the impacts of a lack in confidence more heavily.

This was further evidenced in take up by deal size, with all deals occurring for space less than 5,000 sq ft. The largest deal by size occurred at Paper Yard, Canada Water, with Prosemino taking 3,000 sq ft of fully fitted space in Q1.

A further 11,100 sq ft of laboratory space was under offer at the end of June. With additional fitted laboratory space already going under offer early into Q3 we look forward to a positive turn in the second half of the year.

This will further be driven by the 752,200 sq ft of named London laboratory demand, of which 636,200 sq ft is active. Of this demand, 3 requirements are for 50,000 sq ft +, corresponding to 47% of demand, with 28% of demand for space less than 20,000 sq ft, and 26% for space between 20,000–50,000 sq ft.

Science & Technology Report: Golden Triangle - Q2 2024 

5 Things You Need to Know About Offices, Science & Technology in Cambridge

Take up of lab and office space in Cambridge reached 202,700 sq ft in Q1, the highest Q1 on record, and a 43% increase on the 2023 opening quarter of 141,700 sq ft.

Lab take up alone reached 51,400 sq ft in Q1, the highest opening quarter for lab take up in Cambridge to date - c.4.5 times on Q1 2023 of 11,500 sq ft, and 7.5 times on the Q1 5-year average (2019-2023) of 6,800 sq ft.

Lab take up was dominated by Welbeck Health Partners taking 31,000 sq ft at Howard Group’s Unity Campus as shell and core space on a 30-year lease, and ViaNautis securing 10,800 sq ft of fully fitted labs at Cadence, also at Unity Campus, for a term of 10 years.

In terms of demand, we are tracking 708,000 sq ft of named lab demand in the market, of which 483,500 sq ft is for live, active requirements. Of this total named demand, 72% of requirements are for space smaller than 30,000 sq ft, and 31% for less than 10,000 sq ft. This breakdown reflects an increased number of smaller lab requirements, a theme we are seeing across the Golden Triangle, but it is important to note that Cambridge does currently have more 50,000+ sq ft requirements than either Oxford or London, with four 50,000+ sq ft active lab requirements alone - a testament to its more established market.

Lab activity remains constrained, with just 97,000 sq ft of up-and-built lab space available at the end of March, the majority of this being located within the southern Cambridge cluster – notably Babraham Research Campus, Granta Park, Unity Campus, and Chesterford Research Park. With current interest being expressed on some of the space, the supply-demand imbalance will maintain upward pressure on rental levels during the course of the year.

Additional lab supply totalling 190,000 sq ft is on track to be delivered over the next nine months, with the completion of 1 Granta Park by BioMed Realty and the refurbishment of the former AstraZeneca building at 310 Cambridge Science Park. Interestingly, two office-to-lab conversions will also come on stream – Longfellow’s re-purposing of the first building at CamLIFE and the conversion of a 2 storey office at 316 Cambridge Science Park into a 50:50 lab:office. 

Following the completion of 1 Granta Park, Mission Street's 60,000 sq ft second phase of The Press at Foxton will be delivered at the end of the year and Abstract’s South Cambridge Science Centre will provide brand-new purpose-built lab space in Cambridge, delivering 138,000 sq ft by Q2 2025.

There has been a decrease in venture capital received by life science and biotech companies in Cambridge this quarter, with £58 million raised, down 68% on £180 million, the average raised across each quarter last year. Despite the venture funding slowing in the past quarter, these raises will still positively add to the growing pool of capital waiting to be deployed into the market once macroeconomic conditions settle further and confidence grows.

The office market led transactions in Q1, making up 75% of take up and totalling 151,300 sq ft, with most deals falling into the opening quarter after being under offer at the close of last year. This represents a 16% increase on recorded take up for the equivalent period in 2023 of 130,200 sq ft, and 73% above the Q1 5-year average (2019-2023) of 87,500 sq ft.

The two largest deals of the quarter occurred at Cambridge Science Park as AMD took the assigned 44,600 sq ft Napp Pharmaceuticals lease at Building 196, and Cambridge Mechatronics signed for 21,000 sq ft at Building 306 on a 10-year term. Further at the park, Pragmatic Semiconductor expanded by 13,700 sq ft within Building 400 to now occupy the whole building for a 10-year term.

Other notable deals include Power Integrations leasing 14,400 sq ft at Orchard Street’s Radio House for 10 years, and Five AI taking 5,500 sq ft at Fora, 20 Station Road at a rent of £100.00 per sq ft all-inclusive.

Demand for offices continues albeit at a more subdued rate compared to the science and tech sectors, with named demand tracked at 339,000 sq ft. Of this demand, 91% of requirements are for spaces smaller than 30,000 sq ft, with 61% for spaces less than 10,000 sq ft with much of the demand for small suites centred on the key city centre locations on Hills Road and Station Road. Occupier downsizing and the flight to quality are still very much continuing trends throughout Cambridge.

This quarter, overall office vacancy reached 7.6%, with 572,700 sq ft of office space* available across Cambridge, down from 8.8% last quarter. 60% of availability was in the North Cambridge cluster, with the Crown Estates’ Building B and Newnham House at Cambridge Business Park offering 42,500 sq ft and 42,900 sq ft of Grade B office space, respectively. 

There was 215,800 sq ft of Grade A office space* available at the close of Q1, equating to a 2.9% vacancy rate, remaining in line with last quarter. City centre Grade A supply remains tight with only 107,900 sq ft available at Brydell’s Generator on 42 Newmarket Road, 10 Station Road, Fora at 20 Station Road, and Brooklands, which completed this quarter, with 28,000 sq ft already pre-let to Siemens.

According to DTRE Research, the 5-year average quarterly average Grade A office take up (2019-2023) stands at 74,500 sq ft. With just 215,800 sq ft of available Grade A office space in Cambridge, there is under nine months of Grade A office supply remaining.

Despite strong activity on the occupational front, there were no investment transactions for offices and labs across Cambridge in Q1.

The themes we identified at the close of 2023 are still in play, where negative sentiment still surrounds the shifts in working practices, hesitancy due to macroeconomic conditions continues to linger, despite the UK economy appearing to turn a more positive corner, and planning challenges across Cambridge persist.

In the office market, we are seeing the dislocation of investor sentiment with the market facts. We are recording strong fundamentals, with demand remaining strong, take up reaching 73% above the Q1 5-year average, and low supply figures helping to push the rental tone. In light of the above, we are anticipating yield compression once investor sentiment recognises these positive messages. We do remain hopeful for a more active rest of the year but believe this switch will truly come into play at the start of next year.

Despite the lack of historic transactions for up-and-built lab buildings, we are confident in a more positive second half of 2024 for the science and technology capital markets, as we expect the trading of the first stabilised lab buildings in Cambridge to occur. The lack of this product in the market should attract strong investor demand and will inject confidence into the science and technology market.

Office, Science & Technology Cambridge Market Report – Q1 2024

In Q4 alone, combined lab and office take up in Cambridge reached 243,700 sq ft, lifting total
annual take up to 673,300 sq ft, 16% above the 5-year average. For space over 10,000 sq ft, lab
take up exceeded office lettings by 6.4% (15,000 sq ft), a first for the market.


Named tenant demand for lab space cooled to 790,000 sq ft by the end of the year from
880,000 sq ft in Q3. However, with just 86,500 sq ft of up-and-built bespoke available lab space,
the supply-demand imbalance remains prevalent in the market.


Office take up, whilst ahead of 2022 totals, was restricted by the absence of larger transactions,
with just four occurring for space between 20,000 and 50,000 sq ft. In the absence of larger
deals, the flight to quality over quantity was the key theme in the market, as changes to work
practices continue to see the release of excess space and the transacting of smaller but higherquality product.
Shifts in working practices and other factors have continued to contribute towards negative
investor sentiment surrounding offices, helping to hold back transactional volumes in 2023, with
just £153 million* of deals completed across the office, science, and technology sectors.

Lab take up was strong in 2023, with total take up reaching 282,000 sq ft despite severe
supply constraints across the Cambridge market.

In total, there were nineteen lettings in 2023, up 161% on the 5-year average from 2018-2022, the
highest recorded take up of labs in Cambridge.


The second half of the year saw an uplift in leasing activity with the 85,000 sq ft letting to BioNTech
at 1000 Discovery Drive in December. Of the eleven deals for space over 10,000 sq ft, this was the
only letting above 30,000 sq ft.

This is reflected in the requirement schedules as 67% of the 790,000 sq ft of named demand is
for space below 30,000 sq ft.


Another continuing trend across 2023 was the letting of new or refurbished bespoke wet labs
whilst still under construction. Six of the eleven deals for space over 10,000 sq ft followed this
trend, including the complete letting of 1000 Discovery Drive at the Cambridge Biomedical Campus
to BioNTech (85,000 sq ft) and the NHS (23,100 sq ft); B960 at Babraham Research Campus,
comprising of 36,000 sq ft, wholly let to three tenants at headline lab rents of £66-68.00 per sq ft
before completion; and Domainex, advised by DTRE, committing to 24,300 sq ft at £46.00 per sq
ft in Building A2, Unity Campus.


These deals support the established themes identified in the Cambridge market where the supplydemand imbalance is increasing pressure on available supply, resulting in new supply being prelet or accounted for before practical completion. 


2023 also saw BioMed Realty pre-let 24,800 sq ft of shell and core lab space at One Granta Park
to T-Therapeutics, with good interest on the remainder of the space, as well as signing 21,000
sq ft at the Franklin Building also on the park to F-Star (invoX) for two years, with the existing lab
space taken as is.

In terms of supply, there was 86,500 sq ft of up-and-built bespoke lab space available to
lease at the close of 2023, consisting of 55,000 sq ft of ex-AstraZeneca space at Milstein,
Granta Park, 16,000 sq ft at Phase II Unity Campus, and 15,500 sq ft at Phase I The Press,
Foxton.


Live demand remains comfortably in excess of supply however pressures should alleviate
slightly with the upcoming completions of 110,000 sq ft at One Granta Park in Q4, 40,000 sq ft at
CamLIFE in Q3, and 22,000 sq ft at 316 Cambridge Science Park in Q2, alongside the release of
58,600 sq ft of ex-AstraZeneca space at 310 Cambridge Science Park, also in Q2.


Looking to Q2 2025, Abstract Securities will complete on the largest speculatively built laboratory
building currently under construction in Cambridge. The South Cambridge Science Centre will
comprise of 138,250 sq ft of highly flexible, high quality lab space.


The mid-tech market, however, will see continued stress on supply, with only 151,700 sq ft at
Bourn Quarter Phase II due to be delivered in 2024. Mid-tech is becoming more of a feature
of the market as developers realise the benefits of providing buildings that can accommodate
a diverse range of manufacturing, lab-enabled offices, and GMP space. The provision of a
more flexible offering attracts a broader range of science, tech, and more traditional industrial
occupiers. Accelerator Park in Sawston will build on this momentum by delivering three mid-tech
and R&D buildings comprising 86,300 sq ft in 2025.

Against the backdrop of low supply, the prime headline lab rent in Cambridge remains £71.00
per sq ft, achieved when Charm Therapeutics took 13,600 sq ft at Babraham Research
Campus in Q2. In the same quarter of 2020, Bit Bio set a rent of £43.15 at Babraham Research
Campus, reflecting a 65% rental uplift and an annualised compound growth rate of 18%.

Total office take up in 2023 reached 391,000 sq ft, a 13% increase on 2022’s levels. Despite
this increase, office leasing remained restricted by flexible working ongoing from the peak of
the coronavirus pandemic, falling 17% below the 5-year average (2018-2022).


Of the total, 46% (181,000 sq ft) was for Grade A space, headed by Samsung taking 33,600 sq
ft at One Cambridge Square for 10 years at a headline rent of £38.50 per sq ft, and Raspberry
Pi taking an assignment of the 30,000 sq ft former CMR space at 194 Cambridge Science Park.


Grade A leasing activity remained restricted by a lack of high-quality up-and-built available
space.

There was just 215,100 sq ft of Grade A office space available over 10,000 sq ft at the end
of 2023, with a vacancy rate of 2.9%, further evidencing the demand for top-quality space.


The total availability of office stock over 10,000 sq ft reached 661,600 sq ft at the close of 2023,
reducing the total vacancy rate for all grades to 8.8%, from 9.5% at the end of Q3.


DTRE identified the trend of increased lettings occurring for smaller spaces. Across 67 deals,
82% were for space from 0-10,000 sq ft, 12% in the bracket of 10-20,000 sq ft, and 6% occurred
for space between 20-50,000 sq ft. There were no leasing deals over 50,000 sq ft in 2023.

Occupiers are taking smaller but high-quality spaces as they focus on the quality of the real
estate to attract employees back to the office following the pandemic-enhanced work-fromhome culture.


Despite these pressures on supply, the year ended with a significant amount of office space
under offer – over 142,500 sq ft, of which 67% is Grade A space, reiterating the flight to quality
narrative that DTRE are hearing from occupiers. 


Looking to 2024, we will see the completion of M&G and Wrenbridge’s 68,000 sq ft development,
Brooklands, alongside the delivery of 10 Station Road which will provide 50,400 sq ft by the end
of the year. At the close of 2023, demolition works were also underway as part of Railpen’s
Botanic Place development that will build two office blocks totaling 500,000 sq ft of workspace.

Science & Technology Market Intelligence

DTRE 2025 Outlook

Science & Technology Report: Golden Triangle - Q4 2024

Science & Technology Report: Golden Triangle - Q3 2024

America's life sciences woes won't infect the UK market

Science & Technology Report: Golden Triangle - Q2 2024

Office, Science & Technology Cambridge Market Report – Q1 2024

Office, Science & Technology Cambridge Market Report – Q4 2023

Office, Science & Technology Investment & Leasing Cambridge Market Review – Q3 2023

Delivering Spaces Fit For Britain’s Future