Oxfordshire’s laboratory market recorded annual take-up of 620,200 sq ft in 2025, according to Bidwells’ latest Arc Market Databook, which covers offices and laboratories across Oxford and the wider county cluster.
However, much of this activity was driven by a small number of large transactions. The Ellison Institute’s acquisition of the 450,000 sq ft Daubney Project at Oxford Science Park accounted for the majority of take-up, while smaller deals were limited by subdued market conditions. Reduced venture capital funding constrained demand from start-ups and scale-ups, creating a more cautious occupational backdrop across both laboratory and office markets.
The result is an increasingly two-tier pattern of demand: well-capitalised occupiers are targeting prime, fitted laboratory space, while cost-conscious tenants seek value-led options across established science locations. Laboratory availability ended 2025 at 27%, with further supply expected to enter the market in the near term, even as long-term fundamentals remain supported by major commitments and Oxfordshire’s strong institutional and infrastructure base.
In the office market, prime rents in Oxford reached £65 per sq ft by the end of 2025. City centre availability remains tight, with just 93,000 sq ft available and no units exceeding 20,000 sq ft. Bidwells forecasts positive rental growth over the medium term, projecting office rental increases of 3.7% 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.”
