March 2025 Life Sciences Update

UK: London

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

• In the second half of 2024, the UK's VC market showed signs of recovery, with London securing the majority of this investment. This renewed momentum will hopefully translate into demand in 2025. • Occupiers are concentrating their search efforts on three key areas: the Knowledge Quarter, West London and Canary Wharf. • There is a growing preference for fully fitted laboratories and turnkey solutions, driven largely by demand from growth-stage companies. These solutions enable rapid occupation and allow businesses to allocate raised capital directly to advancing their scientific endeavours. • The emphasis on locations with access to large talent pools has become more critical than ever, underscoring the importance of proximity to skilled workforces. • The development pipeline comprises 1.68 msf of available space currently under construction, with 530,000 sf scheduled for completion in 2025. • Take-up in the second half of 2024 amounted to 11,000 sf, bringing the total for the year to 29,000 sf — a decline of approximately 70% compared to 2023. Rents remain stable and are expected to hold as supply builds.

£ Raised (MM)

Fast Lab Stats

Company

Deal Type

Completed VC Round

£140

25%

1.1 MSF Market Square Footage £130.00 £ Per SF 23.6% Vacancy 9.0K Total Life Sciences Employment 126.8% Life Sciences Employment 10-Year Growth Rate

£120

Myricx Bio

Later Stage VC

Jul 2024 2nd Round £114.0

20%

Purespring Therapeutics

Vacancy Rate

£100

Early-Stage VC

Oct 2024 2nd Round £80.0

15%

£80

Epsilogen

Later Stage VC

Sep 2024 3rd Round

£56.5

Relation

Seed Round

Jan 2024 2nd Round £40.3

£60

10%

LabGenius

Later Stage VC

Apr 2024 3rd Round

£35.0

£40

5%

Pulmocide

Later Stage VC

Apr 2024 5th Round

£31.6

£20

AviadoBio

Later Stage VC

Oct 2024 3rd Round £20.0

Prime Headline Asking Rent £/sf

£0

0%

Treos Bio

Later Stage VC

Apr 2024 3rd Round

£18.6

2018

2020

2022

2024

Relation

Seed Round

Dec 2024 3rd Round

£15.0

Asking Rents

Overall Vacancy

• The vacancy rate in London continues to rise as new developments

Trogenix

Early-Stage VC

Aug 2024 1st Round

£11.9

complete without occupiers in place — an inherent challenge in an emerging sector that is expected to create an oversupply of space in 2025 and beyond.

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

Representative Investment Sale Transactions (2024)

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings

£ MM RBA SF Date Buyer

Address

Type

Company

Type

Industrial to lab conversions

Victoria Industrial Estate, London

Imperial College

115 262,500 Oct-24

35

UK HQ & R&D – Kings Cross

MSD Merck

120-136 Camley Street & 3-30 Cedar Ways, London

30

Office to Lab Conversion

Conf

83,000 Oct-24 Ballymore & Lateral

25

Commercial HQ – Kings Cross

AstraZeneca

20

Representative Lease Transactions (2024)

Gilead Sciences

UK HQ – Holborn

15

Quart er

Company

Address

Size (SF)

New/Renewal

Type

Landlord

10

Caledonia House

Conf

4,500

New

Dry Lab

Q4 Private

Novartis

UK HQ – White City

Kadans Science Partners

5

5-10 Brandon Road

CooperSurgical

2,000

New

Wet Lab

Q4

Global HQ – Tottenham Ct Rd

Conf

Paper Yard

12,000

New

Wet Lab

U/O British Land

GSK

-

2020 2021

2022

2023

2024

P4

5-10 Brandon Road

9,500

New

Wet Lab

U/O Kadans Science Partners

Airhive

5-10 Brandon Road

7,900

New

Hybrid

U/O Kadans Science Partners

Bio Degree-Awarding Institutions, Metro Area

Virocell

5-10 Brandon Road

6,500

New

Wet Lab

U/O Kadans Science Partners

Conf

Kova Kx

70,000

New

Wet Lab

U/O Ashby Capital/ Native Land

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

The Royal Marsden Alan Turing Centre

•

• •

CFDX

Rolling Stock Yard

5,200

New

Wet Lab

U/O Life Science REIT

•

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

91