Oxford regional spotlight – Oxford’s flexible office market driven by life sciences and tech sectors

The science and tech sectors are the engine of Oxford’s flexible office and laboratory market, a dynamic ecosystem that comprises start-ups to established companies and everything in between.

There is currently so much demand competing for very little available space that rents have increased year-on-year, with long waiting lists for the most sought-after, well-established innovation spaces as well as new science parks and developments looking to incorporate this type of accommodation into their schemes. As of very recently the price for a dedicated desk is £200 per person per calendar month (PCM), and £350-£450 per person for a private office PCM, though this will increase in the coming months.  

Occupiers from the science and tech sector will pay more if the product is right. Rather than rental cost, what is most important to these types of tenants is that the space allows them to do what they need, and allows them to scale-up quickly once that need arises - requirements for space are often short-term and reactive. 

A typical journey of a science and tech occupier in terms of its space needs would be starting with a few desks and lab benches on the same campus. If that start-up goes on to be successful, it may be that it is only a matter of months before ‘its own front door’ is required.  

Savills acts for a number of these companies, which 12 months on from moving into a 5,000sq ft grow-on space they already require additional office and lab accommodation because growth has driven significant recruitment. At this stage flexibility of lease and licence structure is key in order to take on expansion space and co-locate.

The ability to cater to that broad spectrum of space needs is why providers are keen to offer a fully-serviced lab space on site, enabling the occupier to stay for its entire life cycle, if they so choose.  

Due to this, Milton Park - home to 250 science, business and tech businesses from start-ups to large corporations - is incorporating a fully-serviced lab facility into the next phase of its scheme.  

While 15-miles north, at the Wood Centre for Innovation, office space has been converted into lab space, targeting exactly this type of occupier. The Oxford Science Park is also looking at options to expand their already successful Magdalen Centre one of the largest innovation centres in the UK. 

A number of larger scale schemes in the city are seeking to incorporate serviced office/lab facilities into future phases of development or retrospectively onto existing parks. The shared facilities that occupiers would have access to include; manned receptions, meeting rooms, café/canteen facilities and even shared labs with equipment such as: autoclaves, fume cupboards and freezers.  

For example Phase 1 of the all-new Oxford North will offer a brand new iconic Innovation Centre known as the ‘RedHall’ (25,000sq ft) in addition to two connected workspace buildings totalling 55,000sq ft each over five floors. This will provide life sciences and technology businesses to incubate and grow, up to global organisations looking to thrive within Oxford’s commercial ecosystem to develop ideas, collaborate and innovate. 

Of course, being near the world-famous university also comes high-up on a tenant’s wish list. The BioEscalator, Oxford University's Biotech incubator, provides lab space and entrepreneurial support for high growth start-ups, and close to many of the Oxford University’s world-class institutes and departments. The BioEscalator nurtures early-stage Medical companies through to sustainability, by facilitating collaboration with NHS and academics, to build a community of entrepreneurial medical scientists and innovators.  

It is dynamic, fast-paced markets such as this are perfect partners for a flexible office market, and highlight just how important this kind of space is to maximising innovation and growth.