Life Sciences Update | 2022 October

FAST FACTS 5

London

Market Summary

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Lease flexibility is key in London with occupiers prepared to pay for flexibility, which allows them to scale up or down as necessary. • Occupiers are more regularly focusing searches on locations that have greater scale, allowing them to grow within a park or area. • There is a greater shift in demand toward fully fitted labs—or turnkey solutions—as 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 as the rise in VC funding has promoted employee growth and a greater strain on the talent pool.

Company

Deal Type

Completed Type £ Raised (MM)

£95.0

0.06

456 KSF Market Square Footage £90.00 £ Per SF 1.50%

EyeBio

Early Stage VC Feb 2022 VC

£47.8

£85.0

Epsilogen

Later Stage VC Feb 2022 VC

£41.6

£75.0

Engitix

Later Stage VC Feb 2022 VC

£39.6

0.04

Peptone

Later Stage VC Jun 2022

VC

£32.0

£65.0

Relation Therapeutics

Early Stage VC May 2022 VC

£19.8

£55.0

0.02

Better Dairy

Early Stage VC Jan 2022

VC

£16.1

£45.0

Vacancy 7.8K Total Life Sciences Employment 113.1% Life Sciences Employment 10-Year Growth Rate

Epoch Biodesign

Seed Round Jan 2022

VC

£14.9

Average Asking Rent £/sf

£35.0

C the Signs

Later Stage VC Feb 2022 VC

£6.8

0

£25.0

LIfT BioSciences

Seed Round Jan 2022

VC

£6.1

2018 2019 2020 2021

2022

Grow Group

Later Stage VC Apr 2022 VC

£6.1

Asking Rents

Vacancy Rate

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

Representative Investment Sale Transactions (2022)

Address

Type

£ MM

RBA SF

Date Buyer

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings

Whitechapel Life Science Cluster, Whitechapel

Office / Lab Development

N/A

3.4 acres

Jul 2022 Marketing

Company

Type

0 100 200 300 400 500 600 700 800 900

7-11 Herbrand St, Bloomsbury

Office to lab conversion

£85.0

67,097

May 2022 Life Science REIT

MSD Merck

UK HQ – Kings Cross

Victoria House, Bloomsbury

Office to lab conversion

£420.0

295,729

Apr 2022 Oxford Properties

AstraZeneca

UK HQ – Kings Cross

Boston House, Fitzroy Square

Office to lab conversion

£29.0

21,000

Apr 2022 Randox

Gilead Sciences

UK HQ – Holborn

100-136 Cavell St, Whitechapel

Lab development

Unknown

52,210

Mar 2022 Lateral

Novartis

UK HQ – White City

GSK

Global HQ - Brentford

Representative Lease Transactions (2022)

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

2018

2019

2020 2021

2022

Resolution Therapeutics

245 Hammersmith, Hammersmith

6,000 New Letting

Lab

U/O L&G / Mitsubishi

LBIC

Apex Tribeca, Kings Cross

27,800 New Letting

Lab

U/O BAPF / Reef/ Blackrock

Engitix

West Works, White City

13,700 New Letting

Office

Q2

Cadillac Fairview

Bio Degree-Awarding Institutions, Metro Area

MSD Merck

Belgrove House, Kings Cross

220,000 New Letting

Lab

Q2

Private

Avacta Group

Scale Space, White City

8,000 New Letting

Lab

Q2

Imperial College London

•

• •

University College London Imperial College London Kings College London Institute of Cancer Research

Queen Mary University Royal Veterinary College, University of London Royal College of Art

Contributors

•

Harry Blanshard harry.blanshard@cushwake.com

• •

• •

City University

Emma Stratton emma.stratton@cushwake.com

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

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/ CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER