Lewis and Partners are currently disposing of 100,000 sq ft of vacant, shell space in the centre of Sheffield. One of the sectors identified to acquire the space is Life Sciences. Below are a few observations from our conversations with the experts within the sector.
The Golden Triangle and Beyond
Like with all real estate, location is key. When it comes to life sciences, this means being situated near hospitals, universities, research centres, and an educated workforce. Within the UK, this is found in the ‘Golden Triangle’ of Oxford, Cambridge and London, which dominate the market.
The sites are usually clustered and campuses are created. Within London, these include King’s Cross with great transport links. White City which is located near research centres and pharmaceuticals. And Canary Wharf and Stratford with lower occupancy costs compared to the rest of London.
Life sciences is a niche sector and requires tailor-made building specifications. This includes lab spaces, freezing rooms, gas storage and disposal of materials. This means high capex costs to build sites and high opex costs to operate them.
With increasing demand in the post-Covid era, supply is not keeping up. This has led developers and occupiers to consider locations beyond the Golden Triangle.
This includes the town of Stevenage which lies in the heart of the Triangle and is on the receiving end of major development schemes. Another region tapping into the market is the North of England. The region is attempting to gain a foothold in the sector by creating businesses and incubators whilst ensuring they work in collaboration with the universities and hospitals in the region.
Life Sciences is playing an increasingly important role in our society. Considering its unique nature, specialists are required to identify, develop and operate sites whilst location is key so that campuses can be created and flourish. The value is in finding regions and sites with Life Sciences potential which the rest of the market has not identified.
A couple of thoughts from the past month: