Is a lack of specialist real estate holding UK life sciences back?
#Week23 saw yet more headlines from the life sciences sector, with the news that Brockton Everlast is eyeing a partner for its £2.5 billion Cambridge portfolio. It’s just the latest in a host of recent announcements in the asset class, ranging from a development opportunity in Oxford, British Land establishing an ‘Innovation Advisory Council’ and the Government unveiling a £650 million warchest to support expansion. Is any sector hotter than life sciences at the moment?
It's not only a UK story. Across the US and Europe, cities are waking up to the potential that scientific research holds to drive economic growth, providing highly-skilled jobs that support a wider ecosystem of innovators, suppliers and inward investment.
In a sign of where the value is added in life sciences – in short: the intellectual property rather than manufacturing capacity – it is new hubs that are doing most to capitalise. Germany’s pharmaceutical industry has traditionally been focused along the Rhine, but it is Bavarian capital Munich that is making the early running, recently unveiling new developments and occupiers to bolster its life sciences credentials.
The UK has a long and proud tradition of scientific research and discovery – it is second only to the US in the number of ‘science’ Nobel prizes its people have won. It has world-class universities and, despite the complications of Brexit, an openness to talent from overseas. It also has a trump card in the NHS and the potential held by its data. As seen with the RECOVERY trial that led to improved treatments for COVID-19, harness this information effectively and great strides can be made.
But is this enough? Announcements and ambitions may be plentiful, but action on the ground seems to be falling short of what is required. Life sciences firms have very specific requirements and specialised facilities, and all the evidence points to the UK simply not having enough of that space.
The pipeline is growing for sure, but compared to many other countries it is more difficult and time-consuming to develop new real estate in the UK. This erodes the UK’s competitiveness, and ultimately drives investment elsewhere. As Simon Carter of British Land recently wrote, it is notable how much the UK lags the US when it comes to innovation and life sciences.
Ultimately, the UK is in competition with all advanced economies across the world. It has many advantages and the potential to be a genuine global leader in the sector, but that’s not enough – it needs the regulatory and planning environment to be similarly supportive if the right space in the right locations is to be delivered. Life sciences could be a key pillar of the UK economy, but if we don’t build it, they won’t come.