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Labs account for half of Oxfordshire office rentals

By Laurence Mcclenaghan
28 February 2022
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A report has found out that half of rented office Oxfordshire space is take up by laboratories.

Such is the success of spin out business from Oxford University, that half of rented office space in the area is used to meet laboratory demand.

The shortfall in suitable properties is leading to a spike in rents with the average price to reach £70 plus. That is the findings of a new report by VSL, the independent Oxfordshire property consultant.

Laboratory take up soared in 2021, with labs now accounting for 50 percent of all take up within the Oxfordshire office sector.

The VSL INTEL annual report provides an analysis of the office and industrial market.

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Focusing on central Oxford and the A34 ‘Innovation Knowledge Corridor,’ the VSL report found laboratory stock is in short supply and will continue to be so in until the development market matches demand in 2023.

There is currently only 12,700 sq ft of fitted laboratory stock available in Oxfordshire but a further 4.75M sq ft of space could reach the market by 2026.

Reportedly there is only 12,700 sq ft of fitted laboratory stock available in Oxfordshire. Far short of the demand, which the report suggests, is in the range of 400,000-600,000 sq ft and growing

Richard Venables, director at VSL says: “The growth in Oxford University spin out companies is now leading to increasing numbers of larger property requirements as these companies receive further funding and seek to move from incubator space.

"Investors are now moving fast to satisfy this demand but there will be a lag of 18-24 months before this comes online and we anticipate continued rental growth. This is reflected in the record prices being achieved for real estate in Oxford.”

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