A thriving UK life sciences real estate market is key to creating a trans-Atlantic super-arc

Since the earliest days of biotech, the UK-US relationship has moved science forward and built globally competitive companies. Cambridge, Massachusetts was named in honour of the alma mater of many of the area’s early settlers – including John Harvard, whose parting gift to the world was the eponymous university which now tops many global rankings. One of the University of Cambridge’s most famous discoveries, the structure of DNA, was the result of collaboration between Francis Crick, an Englishman, and James Watson, who was born in Chicago.

As a world-leading developer, owner and operator of life sciences and technology real estate, with a focus on core innovation markets underpinned by the triple helix of government, academia and private investment, BioMed Realty has an established presence in both Boston/Cambridge, Massachusetts and Cambridge, UK. Our standing portfolio across both cities is in excess of 6.5 million square feet, and complemented by a development pipeline of nearly 4 million square feet.

In both city-regions, and countries, innovations in healthcare have helped deliver huge economic gains via job creation, exports of products and research, and increased life expectancy.

A perfect mix of increased public sector funding, significant capital raising among the private sector, and advancements in big data and artificial intelligence, means life sciences form a growing and crucial part of both the UK and US economies.

In the US, the National Institutes of Health (NIH) recently received a $2 billion boost, bringing NIH’s budget to $45 billion, as well as an extra $1 billion to launch ARPA-H, a new agency designed to accelerate biomedical innovation. The White House has since rolled out new investments totalling $2B aimed at expanding the U.S. biotech and biomanufacturing industry Wednesday, part of the administration’s broader e ort to boost the U.S. manufacturing economy.

Across the pond, PWC, Britain’s biggest accountancy firm, predicts that by 2030, the life sciences industry could add up to £90bn to the UK economy.

The undisputed beating heart of the UK life sciences industry is the OxfordCambridge Arc, which is anchored by two world-leading universities.

Given the close commercial ties between America and Britain, there is a huge opportunity to create a trans-Atlantic super-arc that ties together the world’s two leading life sciences superpowers.

The synergies are already there, with British biotech pioneers such as Bicycle Therapeutics, Vaccitech and Autolus Therapeutics choosing to engage in initial public o erings in the US.

However, creating a trans-Atlantic superarc will only be possible if the UK delivers the lab and workspace needed to support the industry’s continued growth.

Recent record-breaking levels of fundraising have resulted in soaring demand for life sciences real estate.

The latest data from the BioIndustry Association (BIA) shows 2021 was the highest year on record for investment into UK biotech and life science companies, who raised £4.5 billion in public and private financing – 60% more than 2020.

Savills estimates every $1 billion of venture capital investment creates demand for 50,000 square feet of life sciences real estate, while Bidwells forecasts that over 20 million square feet of lab space will be needed in the Oxbridge Arc over the next two decades to keep pace with demand.

If the ‘triple helix’ is the lifeblood that fuels life-saving research and innovation, then it is the property industry’s responsibility to create spaces which house and nurture the innovators aiming to break new ground and create life-saving treatments. Yet right now, in Cambridge, UK, where Britain’s knowledge-economy has a critical mass, there is no available lab space. In comparison, Cambridge, MA, has 44.6 million square feet available.

To respond to the growing demand for best-in-class life sciences real estate, BioMed Realty aims to double its UK portfolio. Our planned £850 million investment will create close to one million square feet of much needed high-quality lab and workspace in Cambridge, UK.

As part of a joint venture with Babraham Research Campus, we have also started work on delivering an additional 40,000 square feet on Grade-A space on the Campus. The new development will ensure space for life sciences companies that are typically underserved UK wide; namely those growing out of the early stages of incubation with an ambition to scale.

Both the UK and US played leading roles in creating the Covid-19 vaccines that are estimated to have saved at least 20 million lives globally. A trans-Atlantic super-arc, underpinned by the missioncritical research facilities needed to create life-saving treatments and cures, could help save millions more.