Build: Perspective – Science

Following a turbulent year in 2025 for the science sector, 2026 shows signs of being a brighter year. We have seen planning approval being granted for a £1 billion expansion of the London Cancer Hub, adding around 1 million sq ft of new laboratory and innovation space in Sutton, as well as positive private sector-funded moves, including the Ellison Institute of Technology expanding its campus at Oxford Science Park and Bridge Labs at Beaver House now remobilised, with construction due to start imminently. In Cambridge, the County Council has approved a new deal with Prologis, which could see Cambridge Biomedical Campus double in size to 2.4 million sq ft, subject to relevant planning approvals.

While the approval of such development is in alignment with the UK’s Modern Industrial Strategy, they will, of course, take time to come to fruition.

In the short term, with occupiers remaining highly focused on cost, and demand for new space remaining volatile, we are starting to see developers turn their attentions away from highly specified wet lab buildings in favour of cheaper warehouse-style units, branded as “mid-tech” buildings. From a cost perspective, the numbers speak for themselves: a wet lab finished to shell and core costs around £420 per sq ft, compared to around £225–£250 per sq ft for a warehouse-style unit. This is reflected in the rental levels occupiers can expect to pay, which would be between £20–£30 per sq ft on the mid-tech units compared to £55–£60 for a highly specified wet lab in the Oxford market.

In addition to cost pressures, this is driven by the versatility of these units in a period of uncertainty. While mid-tech units offer a cheaper rent, fit-out costs will likely be higher. Generally speaking, though, the cheaper space offers greater flexibility for tenant usage, avoiding wasted money on systems that may be underutilised and allowing a variety of use types, including engineering, manufacturing and R&D.

Driven by current viability concerns, slower tenant demand and uncertainty surrounding the use of AI and robotics, the delivery of more flexible space allows for more possibilities to utilise space and reduce void.

This trend is particularly evident in Oxfordshire, where over the last six years nearly 900,000 sq ft of mid-tech leases have been signed. While 2025 saw take-up some way below the five-year average, this can be explained, in part, by the slowdown in funding activity in recent years. However, during 2025, we saw investor capital begin to move into new areas such as defence. It is therefore expected that take-up levels in 2026 will rebound and exceed the five-year average.

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