London’s role as a lab science location has been limited by shortage of sites but evidence suggests the picture is changing rapidly, suggests Miranda Knaggs.
With its wealth of world-class medical and scientific institutions, London is considered alongside Oxford and Cambridge as part of the UK’s golden triangle of life science clusters. However, there has been a critical shortage of lab space for the sector in London since 2016, with existing sites in the capital predominantly confined to edge-of-town and fringe locations.
Until now, the high cost and intense competition for premium facilities near London’s research hubs have forced many early stage companies to look elsewhere for suitable research space.
But there are in fact several innovative districts emerging in the capital, including major new developments and incubators that are focused on creating flexible, commercial lab spaces to meet the growing demand from life science tenants.
The future for London lab space is promising, according to MedCity, the life sciences cluster organisation for London. Having previously reported on the imminent shortage of lab space for fast-growing life science businesses, it has commissioned and published an updated Lab Showcase Report which highlights numerous innovative districts emerging in the capital, including major new developments focused on creating flexible, commercial lab spaces to meet the growing demand from life science tenants.
Growth for capital’s life sciences
The report shines a light on London’s phenomenal growth in the life sciences sector in the last five years, including a 7.1% growth in life science companies, a 4.4% growth in life sciences manufacturing sites, an 8.4% growth in R&D sites, and a 14.1% growth in employment at those locations. The research also showed the largest increase in employment in life sciences in the UK, a growth of 29% from 2011 to 2022.
But the impressive level of innovation and pace of growth in the sector is only sustainable if a stimulating and nurturing environment is created that allows companies at all stages of their development to meet, network and collaborate. Indeed, modern, well-equipped facilities are vital for life science companies seeking to innovate as well as attract top talent.
Encouragingly, the report predicts that lab space constructed in London will have nearly doubled to two million sq ft by the end of 2026, compared to space constructed between 2021 and 2024. It also forecasts a seven-fold increase by 2032 to 7.2 million sq ft, of which 2.7 million sq ft will be wet lab space.
Bloomsbury base
MedCity reveals that the largest volume of upcoming development is in London’s Knowledge Quarter, including the biggest development of wet lab space. Situated there is Pioneer Group’s Victoria House – a neoclassical, Grade II-listed building set in the Bloomsbury district.
Together with Oxford Properties, Pioneer Group has combined laboratory development and operation with venture building to transform it into 300,000 sq ft of contemporary office and lab space, where life sciences, technology entrepreneurs, academia, research, large
pharma and venture finance can collaborate and access London’s scientific talent pool.
Moreover, the location offers proximity to several world-renowned universities, hospitals, and medical research centres, including University College London, GSK and Great Ormond Street Hospital, as well as being home to the BioIndustry Association (BIA), the voice of the life sciences and biotech industry, as an anchor tenant.
Flexibility at the heart
The research by MedCity highlights the vital importance of considering flexibility when designing new labs to accommodate the often-diverse requirements of early-stage, growing life science companies. To maintain their competitive edge, developers must be adaptable to varying needs regarding size, tenancy length and lab type requirements.
As entrepreneurs and investors immersed in the life sciences, Pioneer Group understands the unique challenges life science companies face. We set out to cultivate an empowering ecosystem at Victoria House, designed to facilitate rapid growth and maximise capital efficiency, as well as alleviate the shortage of flexible laboratory facilities in London.
It forecasts a seven-fold increase by 2032 to 7.2 million sq ft, of which 2.7 million sq ft will be wet lab space
The first step was ensuring our incubator laboratories were equipped with both collaborative areas and quiet spaces to provide a versatile environment that could meet the evolving needs of businesses. We then developed flexible rental options for companies. Early-stage businesses can start with a single 1m bench in the Co-Lab, gaining access to advanced equipment and mentoring services. As businesses expand, there are opportunities to transition into private Flexi Labs or Flexi Labs Plus, with continued access to the amenities and resources of the main incubator laboratories.
Larger organisations can move into the ready-to-occupy Premium Labs, which come fully furnished with associated offices. When companies are ready to expand further, they have the option to move elsewhere within the building to establish a lab space that is customised to their exacting requirements.
Looking to the future, the growing number of new developments and incubators will be at the heart of the sector’s continued growth. Lab spaces that prioritise flexibility will be key to help nurture the growth of life science companies and ultimately strengthen London’s position at the forefront of the global sector.
Miranda Knaggs is corporate development director at specialist life science infrastructure company Pioneer Group
