H1 2024 Life Sciences Update Market Summaries

UK: London

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

• The first half of 2024 posted a 43% decline in VC funding YOY, however, there are several large rounds looking to close in the third quarter of 2024. Demand in London is showing signs of returning to polarised locations, as VC funding is facilitating the advancement of companies moving to the next stage of their growth cycle. • Occupiers are focusing searches on three core locations: Knowledge Quarter, West London and Canary Wharf. • There is a greater shift in demand toward fully fitted labs—or turnkey solutions—as most of the demand is from growth companies, and it allows speed to occupation and for the capital raised to be invested into the science. The focus around locations with large talent pools remains greater than ever. • Take-up for the first half of 2024 totaled just 4,800 sf, 85% down the first half of 2023. Quoting rents have held firm, however, there remains little evidence in the market for deals that are more than 15,000 sf. • Pipeline supply stands at 2,127,750 sf under construction, of which 411,656 sf is under offer. • The vacancy rate in London has spiked due to new developments completing without occupiers in place—an inherent issue with an emerging sector.

£ Raised (MM)

Fast Lab Stats

Company

Deal Type

Completed VC Round

12%

£140

857,000 SF Market Square Footage £130.00 £ Per SF 19% Vacancy 8.9K Total Life Sciences Employment 126.3% Life Sciences Employment 10-Year Growth Rate

LabGenius

Later Stage VC

May 2024 4th Round

£43.9

£120

10%

Relation

Seed Round

Jan 2024 2nd Round £40.3

Vacancy Rate

£100

8%

Pulmocide

Later Stage VC

Apr 2024 5th Round

£31.0

£80

6%

Baseimmune

Later Stage VC

Feb 2024 2nd Round

£11.4

£60

Sano Genetics

Later Stage VC

Jan 2024 4th Round

£11.4

4%

£40

Antev

Later Stage VC

Apr 2024 3rd Round

£11.1

2%

£20

Accelerator/ Incubator

SökerData

Feb 2024

£7.8

Prime Headline Asking Rent £/sf

£0

0%

Echopoint

Later Stage VC

Mar 2024 4th Round

£6.0

2018

2020

2022

2024

Sania Therapeutics Early Stage VC

May 2024 3rd Round

£5.0

Asking Rents

Overall Vacancy

Elder

Later Stage VC

Apr 2024 7th Round

£1.9

* Rents adjusted to reflect occupier costs of office to lab conversion

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings

Representative Investment Sale Transactions (2024 1H)

Company

Type

£ MM RBA SF Date Buyer

Address

Type

35

UK HQ & R&D – Kings Cross

Imperial College, South Campus, White City Lab Development

Conf.

340,000 U/O Conf.

MSD Merck

30

1 Triton Square, London (50:50 JV)

Office to Lab Conversion

£192.5M 366,000 Mar-24 Royal London Asset Management

25

AstraZeneca

UK HQ – Kings Cross

20

Representative Lease Transactions (2024 1H)

Gilead Sciences

UK HQ – Holborn

15

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

10

Novartis

UK HQ – White City

Wet Lab

Virocell

85 Grays Inn Road

5,000 New

U/O Clearbell

5

Wet Lab

Baseimmune

(LBIC) Apex Tribeca

2,500 New

U/O LBIC

Global HQ – Tottenham Ct Rd

GSK

-

Wet Lab

2020 2021

2022

2023

2024

Laverock

(LBIC) Apex Tribeca

4,112 New

U/O LBIC

Wet Lab

British Land

Prosemino

Paper Yard

2,000 New

Q1

Bio Degree-Awarding Institutions, Metro Area

Wet Lab

Phycoworks

Scale Space

2,800 Renewal

Q1

Imperial/ Blenheim Chalcot

Wet Lab

• University College London • Imperial College London • Kings College London • The Francis Crick • Wellcome Trust • Institute of Cancer Research

• The Royal Marsden • Alan Turing Centre

Ten Point Tx

(London Innovation Centre) 20 Water St

1,500 New

Q1

Kadans Science Partners

Contributors

Harry Blanshard harry.blanshard@cushwake.com Rory MacGregor rory.macgregor@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook, Federal Reserve Economic Data (FRED)

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 SEPTEMBER