Knight Frank: Cambridge science leasing hits record as UK innovation hubs grow

Science and innovation leasing across Britain’s Golden Triangle reached 21,812 sq m in the first quarter of 2026, as Cambridge posted its strongest quarter on record, according to Knight Frank. Demand for laboratory and office space continued to build despite pressure on early-stage occupiers.

The global property consultancy said take-up across London, Oxford and Cambridge — known as the Golden Triangle — rose 43.2% above the five-year average and 6% ahead of the same period in 2025.

Cambridge accounted for 15,486 sq m of leasing activity during the quarter — more than 200% above its five-year quarterly average of 5,135 sq m.

The figures came despite a sharp decline from the exceptional 56,703 sq m recorded across the Golden Triangle in the fourth quarter of 2025, which Knight Frank said had been heavily influenced by major Ellison Institute transactions at Oxford Science Park.

Cambridge Aerospace led activity in the first quarter with a 7,574 sq m letting at Bourne Quarter. Bruntwood SciTech also completed a 3,809 sq m letting of the Da Vinci Building at Melbourn Science Park to Cellular Origins for its new global headquarters, while 4 Base Bio took 3,400 sq m at Q-Arc, Cambridge Science Park.

London science and innovation take-up totalled 2,053 sq m across five deals after no recorded activity in the previous quarter. Knight Frank said momentum had strengthened further through the artificial intelligence sector, with Databricks pre-letting 12,663 sq m at Network W1 and Gilead Sciences taking 4,645 sq m at 1 Triton Square in London. AI-related take-up in London reached 29,079 sq m during the quarter.

The adviser said activity accelerated into the second quarter following April deals involving OpenAI and Anthropic, pushing year-to-date AI leasing volumes above the full-year total for 2025.

More than 55,742 sq m of active AI-led demand remains in the market, supporting the potential for 93,000 sq m of take-up by year-end.

Oxford recorded 4,273 sq m of leasing activity across four deals during the quarter. While this represented a sharp decline from the previous quarter’s elevated total, Knight Frank said underlying leasing activity still increased 58.3% quarter-on-quarter after excluding the Ellison Institute transactions.

Development activity across the Golden Triangle also remained strong. Knight Frank said the pipeline of projects under construction and due for completion by 2028 totals 342,440 sq m, with 42.9% expected to complete in 2026. London accounts for 45.4% of future supply, ahead of Oxford at 31.1% and Cambridge at 23.5%.

Completed schemes during the quarter included Trinity by Breakthrough in Oxford, which delivers 19,974 sq m of laboratory and office space. King’s College London and Pioneer Group also secured consent for a 16,400 sq m laboratory and office redevelopment at Guy’s and St Thomas’ campus, while developers lodged proposals for the 93,000 sq m Whitechapel Healthcare and Research Campus in London.

Knight Frank said wider market indicators continued to reflect strong investor and government support for the sector. UK life sciences venture capital funding reached £753.7 million across 136 deals during the quarter, with the Golden Triangle capturing 72% of total deal value. AI and machine learning companies featured in 41.2% of life sciences transactions.

At the same time, the number of active UK life sciences companies fell to 17,616 in the first quarter, representing a net decline of 89 businesses from the previous quarter.

Jennifer Townsend, partner, insights – life science and innovation at Knight Frank, said the market continues to show mixed signals despite improving sentiment.

“The Q1 data sits in two registers. Biopharma sentiment is improving and leasing activity held up over the quarter, but a decline in active company numbers and continued restructuring among larger occupiers suggest the sector is still moving through a cyclical adjustment,” she said.

Townsend added that long-term fundamentals remain supportive, citing “a strong academic base, investment in AI, and a clearer policy commitment”.

Knight Frank said occupiers continue to prioritise flexibility and cost management as funding conditions remain challenging across the science and innovation sector.

“Occupiers are prioritising cost and flexibility, taking advantage of the current supply dynamic to secure the space they need for their critical operations while a focus on outsourcing remains,” said Nicholas Blevins, head of life sciences and innovation at Knight Frank.

He added: “Looking forward, the operational and funding environment continues to pose challenges for most science and innovation businesses. With that said, the raft of new funding measures announced in Q1 and a more positive UK-US trade outlook should help to pave the way for high-performing UK science and innovation businesses to enjoy sustained success.”