The Growing Influence of Cell and Gene Therapy on Life Sciences Real Estate in the UK

The real estate landscape in the UK is set to experience a significant shift in the coming years, driven by advancements in cell and gene therapy research and manufacturing. According to industry experts, these emerging technologies are leading the way in the life sciences sector and are poised to drive up demand for real estate.

Traditional chemical drug research and development are expected to evolve and create demand for space, but it is the emerging cell and gene therapy research that is projected to be a major area of expansion for the UK life sciences industry. The growth in this sector has already translated into increased demand for real estate, particularly in manufacturing facilities.

Cell and gene therapy research has seen significant progress in recent years, leading to the doubling of jobs in the sector between 2019 and 2023. The Cell and Gene Therapy Catapult has projected a further doubling of jobs between 2021 and 2026 to keep up with the sector’s growth.

One of the key challenges for the UK is to provide space for companies in the cell and gene therapy sector to manufacture drugs once they have been discovered and tested. Failure to do so could result in companies seeking manufacturing facilities outside of the UK, which would have a detrimental effect on the domestic life sciences ecosystem and the economy as a whole.

To address this challenge, real estate firms like UBS are venturing into the manufacturing sector by developing life sciences campuses that include dedicated manufacturing space. For example, UBS has teamed up with developer Reef to build a £900M life sciences campus in Stevenage, which will not only offer lab and office space but also manufacturing facilities.

The development of manufacturing space is not without its challenges, as the sites suitable for such facilities often have higher-value alternative uses. However, the synergy of having manufacturing and research and development space on the same campus is seen as essential for the advancement of the life sciences sector.

Overall, the growth in cell and gene therapy research and manufacturing is expected to drive demand for advanced real estate facilities in the UK, creating a positive ripple effect on the economy and the real estate sector. It is crucial for the UK to capitalize on this opportunity to ensure that the country remains a leading player in the global life sciences industry.