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News Release

Latest London Stock Exchange reports indicate booming UK life science sector

Search for lab space made easier by JLL’s UK Life Science Supply map


​LONDON, 22 June 2017 - The UK is at the forefront of life science innovation, fundraising and investment according to recent statistics published by the London Stock Exchange. Further evidence of the booming sector can be seen following the April 2017 announcement of a £35m development for up-and-coming Cambridge life sciences firms.

The UK has become renowned for having a world-leading life science sector which generates billions of pounds for the UK economy. In fact, it is has been ear-marked to be the third largest biotech cluster in the world, and comprises nearly 5,000 companies (including non-manufacturing and service companies) that employs an estimated 175,000 people. £1.96 billion was raised in life science IPOs and further offerings on London Stock Exchange in 2016, bringing the total since 2014 close to £6 billion - an historic three-year peak in life science funding in the UK (source: lseg.com).

The sector, which provides products that the NHS and UK patients rely on every day, is of critical importance to the nation. To reflect this, the UK government has created an Office for Life Sciences (OLS) which champions research, innovation and the use of technology to transform health and care service. In real estate terms this is demonstrated by established clusters such as London, Cambridge and Oxford that make up the UK’s life sciences ‘Golden Triangle’ where huge amounts of investment and development are taking place. Over 115 life science companies are currently listed on London Stock Exchange, with a combined market capitalisation nearing £400 billion, up £40 billion since the end of 2015 (source: lseg.com).

While the UK pharmaceutical industry demonstrates a great example of first rate innovation, investment and success, the sector is also facing growing pressures. Real estate makes up the second most substantial cost for pharmaceutical companies and as a result, they are increasingly recognising the value that real estate can bring to the broader corporate agenda. For instance, the benefits of locating near Life Science hubs.

To make it easier than ever for biotechnology, biomedical and bioscience industries to find lab space in the UK, JLL has launched the UK Life Science Supply Map to provide up to date information on key clusters in London and the South East. This tool is designed to track new developments and help identify existing life science parks, science lab or biotech lab space. Various life science laboratories, innovation centres and research parks are highlighted showing information such as availability, amenities, total square footage, key occupiers, owner and contact information.

The UK life science industry is in the midst of transformation, as increased competition and globalisation influence business and real estate decisions. As a result companies will need to strongly consider how an effective real estate strategy can benefit the wider business.

Chris Walters, Associate Director, Strategic Development Consulting, JLL
chris.walters@eu.jll.com