Breaking new ground? News of significant life sciences letting at an office to lab conversion

Back in 2023, whilst some businesses were encouraging a return to the office post-pandemic, we asked whether lab conversions were the obvious answer to office space voids. News of the largest life sciences letting in the UK so far this year provides a new example of a successful office to lab conversion in the present market. 

It has been recently announced that Ashby Capital and Native Land have pre-let Kova KX, a 70,000 sq ft new life sciences development in King’s Cross, to LifeArc, a self-funded medical research organisation established by the UK’s Medical Research Council.  The deal is interesting, not just due to its size but also its location and the history of the building, being an office to lab conversion.

As we explained in 2023, location is key for life sciences occupiers. They want to be near, or have easy access to, universities, hospitals and research centres (known as “clusters” which are key to fostering innovation, collaboration and accelerating growth).  The location of Kova KX is no exception.  It is located in the heart of the Knowledge Quarter in King’s Cross, home to the Francis Crick Institute, the Wellcome Trust, University College London, AstraZeneca UK and the British Library.  

Also of note is the fact that this deal relates to the conversion of an Edwardian office building which is one of the first buildings in the city to be refurbished for a life sciences occupier.  The redevelopment will see around 75% of the structure being retained with two additional storeys being constructed and the space to be let will cater for level 2 wet lab requirements.   LifeArc have described the building as being “specifically designed to meet LifeArc’s needs”.   As we previously commented, many occupiers in this sector will have bespoke occupational requirements and it will need to be understood what consents are required for the works required to facilitate this type of use. Whilst office to lab conversions are a seemingly obvious solution to office voids, they are often fraught with practical difficulties and landlords considering them should ensure they fully understand the requirements of life sciences occupiers.

The refurbishment is targeting net zero carbon in operation, with all-electric services, and BREEAM ‘Outstanding’ accreditation. This highlights a growing trend across the wider real estate industry where occupiers expect their real estate to assist in meeting their own ESG and net zero targets whilst allowing them to reap the rewards of an efficient building. This occupational requirement often sits neatly alongside investors who are looking at more than just financial metrics when making investment decisions and is something we are seeing developers increasingly prioritising. 

The scheme is also set to offer “best in class” amenities, with green spaces and outdoor terraces, health club-style showers and changing facilities, 140 cycle spaces and a collaborative events space, factors important in a sector where working from home is less of an option. There had been some doubts raised about the suitability of city locations for the life science sector with the general preference seemingly being for larger science parks, especially those concentrated around the ‘golden triangle’. This is being dealt with by developers by building lab space in smaller hubs throughout the city and investing in amenities and external environment with the intention of rivalling the cohesive feel of a science park. 

Finally, whilst the UK life sciences market is experiencing various challenges at the moment, the early take up of this space highlights that there are still plenty of reasons to be optimistic.  Even those occupiers with requirements for high-spec lab space can be effectively met via considered office to lab conversions in the right locations.