For early-stage life science companies in the UK, deciding where to establish or relocate operations to access additional laboratory space can present a dilemma. Regional locations such as Bristol, Birmingham and Manchester typically offer some of the lowest property rents. This is especially the case in refurbished or reconditioned properties which may not offer the highest technical specifications.
On the other hand, Cambridge, Oxford and London, which together comprise the “Golden Triangle,” offer many intangible and non-financial attractions of inestimable value but at a rental price maybe 50-150% higher.
In its report, EMEA Life Sciences Cluster Outlook 2023, JLL distinguishes between Cambridge, London and Oxford as “Advanced Cluster Markets” on a European scale and provincial cities such as Manchester and Birmingham as “Maturing Hubs”. The distinction considers variables including completeness of their ecosystems, mix of established and early-stage life science companies, access to finance, workforce, housing, transport and science/academia integration which together combine to generate scientific innovation and stakeholder value.
Comparing Regional Locations with Cambridge
Science Credentials
Although not homogeneous, regional cities such as Bristol, Birmingham, Manchester and Leeds are actively developing their life science presence.
Bristol:
University of Bristol ranks in UK top 10 for medical/life science research
Strong biotech cluster at Bristol & Bath Science Park
Unit DX incubator supporting early-stage companies
No major pharma headquarters but research presence of companies like GSK
Specialisms in quantum technologies and synthetic biology
New £300m Temple Quarter Enterprise Campus under development
Birmingham:
University of Birmingham Medical School among UK's largest
Birmingham Health Partners alliance with major NHS trusts
£210m Institute of Translational Medicine
Birmingham Health Innovation Campus under development
Regional hub for clinical trials
No major pharma headquarters but significant NHS/academic research base
Manchester:
Large life sciences presence at Alderley Park (former AstraZeneca site)
Manchester Science Partnerships hosting 150+ biotech companies
Significant NHS research through Manchester University NHS Foundation Trust
Specialisms in cancer research and precision medicine
University of Manchester strong in biomedical research
ID Manchester £1.7bn innovation district in development
Qiagen's European hub located at CityLabs campus
Major historic pharma presence through AstraZeneca but HQ now relocated
Leeds:
Leeds Teaching Hospitals among Europe's largest
University of Leeds medical/biological research focus
Part of wider Northern Health Science Alliance
Historic strength in medical devices and diagnostics
Notable companies include Covance and Tissue Regenix
No major pharma headquarters but significant CRO presence
Emerging specialisms in health data and medtech
While these cities have significant academic research strengths and growing company clusters, they notably lack major pharmaceutical company headquarters compared to Cambridge/Oxford. Their life science sectors tend to focus more on medical devices, diagnostics, clinical research and NHS-linked activities rather than novel therapeutic development.
South Cambridge Science Centre
Cambridge:
Cambridge is a world-leading life sciences hub anchored by the University of Cambridge, which is amongst the top global institutions for life science research. According to JLL's EMEA Life Sciences Cluster Outlook 2023, Cambridge's academic excellence provides "exceptional talent and research-related intellectual property to the surrounding cluster." This creates unparalleled opportunities for early-stage companies to access cutting-edge research, collaborate with leading academics, and recruit highly skilled graduates.
The density of expertise in Cambridge means crucial scientific insights and problem-solving often happen via chance encounters and informal networks.
Highest concentration of life science companies per capita
Strongest track record in company formation and scaling
Focus on biotechnology and therapeutic development
Strong medical research focus linked to Addenbrooke’s Hospital
AstraZeneca relocated global HQ to Cambridge Biomedical Campus in 2023
Funding Access and Investor Networks
For early-stage companies, access to capital is critical. Cambridge's funding environment is particularly robust, with JLL noting that "deep VC and public sector backing has allowed young companies to grow rapidly and bring novel IP to market." In 2023, Cambridge-based life sciences companies received $4.7 billion in funding, significantly outperforming other UK regions.
In comparison, regional funding levels were notably lower:
Manchester: $36.8 million
Birmingham: $4.2 million
Newcastle: $9.9 million
Bristol: $57.9 million
Established Ecosystem and Support Infrastructure
Cambridge's mature ecosystem provides early-stage companies with essential support services and infrastructure. The city has "a large number of science parks with a rich provision of wet-lab facilities for a mixture of early-stage and mature companies," according to JLL. This specialized infrastructure is crucial for life science companies and is often lacking or limited in regional locations.
Cambridge:
Multiple established science parks
Purpose-built lab facilities
Specialized equipment sharing networks
Complete ecosystem of support services
Regional Cities:
Limited specialized laboratory space
Often retrofitted rather than purpose-built facilities
Fewer specialized support services
Less developed equipment sharing networks
Lower occupancy costs but higher operational challenges
Talent Pool and Recruitment
While regional locations may offer lower operating costs, Cambridge provides access to a deep pool of experienced life science talent. The presence of established biotech companies means there are professionals with industry experience who can help early-stage companies scale. The University of Cambridge also provides a steady pipeline of highly qualified graduates and postdoctoral researchers.
Employment statistics highlight the difference:
Cambridge: 34.5% growth in life science employment over 10 years
Regional cities: Varying from -1.2% to 15% growth
Regional Development Initiatives
Several UK regions are actively developing life science clusters:
Manchester:
Citylabs development
£1.7bn ID Manchester innovation district
Lower operating costs but smaller ecosystem
Birmingham:
Life Sciences Park development
Strong medical school presence
Limited existing life science company base
Leeds-Sheffield:
Advanced Manufacturing Park
Lower cost base
Smaller specialized workforce
Despite these initiatives, these locations still lack the comprehensive advantages of Cambridge's established ecosystem.
Property Considerations
Real estate costs vary significantly across locations:
Lab Space Rents per sq ft in 2023:
London (fitted labs): £130
Cambridge: £71.50
Oxford: £55
Manchester: £38
Birmingham: £50
Bristol: £24
Source: Carter Jonas Life Science Report Spring 2024
While regional locations may offer significantly lower property costs, the availability of specialized laboratory space is often limited, and facilities may require substantial investment to meet today’s technical specifications.
For life science companies with ambitions to relocate to Cambridge, there is currently one way to secure top-quality operational premises within the ecosystem at a relatively low cost. The first phase of the South Cambridge Science Centre comprising 138,000 square feet of highest specification wet and dry laboratory space is due to complete in April 2025.
South Cambridge Science Centre is strategically located within the heart of the Cambridge Cluster and is only ten minutes’ drive from the Cambridge Biomedical Campus. The property cost is approximately 30% lower than competing schemes in Cambridge and the floor plans are highly flexible. For early- stage and established life science companies, South Cambridge Science Centre offers the prospect of access to Cambridge’s invaluable ecosystem at a property price equivalent to a premium regional level.
Making the Strategic Decision
For early-stage life science companies, the decision of where to locate involves balancing multiple factors:
Cost Considerations:
Operating costs
Real estate expenses
Salary requirements
Setup and fit-out costs
Ecosystem Benefits:
Access to talent
Funding availability
Support services
Collaboration opportunities
Growth potential
Regional locations may offer cash advantages in terms of property costs and government incentives. However, the benefits of Cambridge often make it the optimal choice for ambitious early-stage life science companies. The combination of scientific excellence, funding access, ecosystem support, and talent availability creates an environment where innovative companies can maximize their chances of success.
The development of the South Cambridge Science Centre offers ambitious life science companies access to the highest specification new build laboratory space in the heart of the south Cambridge ecosystem for a property price equivalent to a premium regional location.