Louise Ward and Georgina Muskett contribute to Estates Gazette on life sciences dilapidations

There are signs of renewed momentum in the life sciences sector, with planning permissions granted for new developments and venture capital funding beginning to return after several challenging years. Indeed, the sector has been identified by the government as a priority growth area within its 10-year industrial strategy.

This positive outlook is not without its challenges. AstraZeneca’s Farxiga has recently lost patent protection, placing significant annual revenues at risk, while GSK and other UK pharmaceutical companies have responded with increased merger and acquisition activity.

From a real estate perspective, increased funding is likely to drive expansion by life sciences occupiers, resulting in demand for larger premises. At the same time, heightened M&A activity may lead to an increase in vacant space as businesses rationalise their property portfolios and exit surplus sites. 

Against this backdrop, dilapidations claims are expected to rise, particularly given the prospect of a US‑style supply surplus emerging in 2026. Occupiers and investors should be aware, however, that dilapidations issues in the life sciences sector can be more complex than those arising in more traditional commercial property contexts.

Louise Ward, Partner in our Real Estate team, and Georgina Muskett, Senior Associate in our Real Estates Disputes team, write in Estates Gazette:

There are signs of green shoots in life sciences this year, with planning permissions for new developments and venture capital funding flowing back into the sector after a challenging few years. Life sciences is a growth sector identified by the government as part of its 10-year industrial strategy, with the Oxford-Cambridge corridor being a key priority. 

Read the full article in Estates Gazette here (subscription required).