Oxfordshire’s laboratory market recorded annual take-up of 620,200 sq ft in 2025, according to research by Bidwells.
The property consultant’s Arc Market Databook covering office and laboratories across Oxford and the wider county cluster, showed the figure was largely down to The Ellison Institute’s acquisition of the 450,000 sq ft Daubney Project at The Oxford Science Park.
It showed market conditions were otherwise subdued. Reduced venture capital funding constrained demand from start-ups and scale-ups, contributing to a more cautious occupational backdrop across both lab and office markets.
The result exposed an increasingly two-tier pattern of demand, with well-capitalised occupiers targeting prime, fitted space while more cost-conscious requirements seek value-led options across the county’s established science locations.
Laboratory availability stood at 27 per cent at the end of 2025, with availability expected to rise in the near term as further space is delivered.
In the office market, prime rents in Oxford rose to £65 per sq ft at the end of 2025. However, city centre availability remains constrained, with 93,000 sq ft available with no available units above 20,000 sq ft.
Bidwells expects rental growth to remain positive over the medium term, with forecast office rental growth of 3.7 per cent per annum over both the next three and five years.
Duncan May, partner, laboratory & office agency at Bidwells, said: “2025 was a mixed year for office and lab leasing in Oxfordshire. Funding conditions were tighter, decision-making slowed and, away from a small number of very large commitments, the occupational market was more selective than the headline take-up figure might suggest.
“However, the Ellison Institute’s commitment is undoubtedly significant and long term in nature, and it reinforces Oxfordshire’s position within a globally recognised science and technology cluster.
“But it would be wrong to characterise last year as buoyant overall. Demand was increasingly polarised between well-capitalised occupiers targeting prime, fitted laboratory space at premier campuses such as ARC Oxford, The West End and Harwell, whereas more cost-conscious requirements are looking for value across established science hubs such as Abingdon Science Park or Oxford Technology Park.
“Despite this, the early months of 2026 have seen a clear increase in enquiries and activity, which suggests that confidence is gradually returning. The fundamentals of the cluster remain strong, but the market remains disciplined and funding will continue to play a critical role in shaping demand.”
© Thames Tap (powered by ukpropertyforums.com).
This article and its contents are the intellectual property of UK Property Forums and may not be reproduced, distributed, or used in any form without prior written permission. The views expressed are those of the author(s) and do not constitute legal or professional advice.
