Demand for mid-size lab and manufacturing space key to sustaining Scotland’s life sciences growth, finds report
A shortage of specialist laboratory and manufacturing space could slow the growth of Scotland’s rapidly expanding life sciences sector unless new development comes forward in the coming years, according to a new report.
The report, produced by CBRE on behalf of Scottish Enterprise and the Scottish government, provides a detailed breakdown and analysis of supply and demand for laboratory, office and manufacturing space within Scottish Enterprise’s geographical area, primarily in eastern, central and parts of southern Scotland.
Developed with input from industry stakeholders such as Pioneer, Kadans and Buccleuch Property, as well as a range of Scottish universities, the report explores the infrastructure needed to support Scotland’s growing life sciences sector and ambitions to grow the industry to £25bn by 2035.
Scotland’s life sciences industry has expanded significantly over the past decade, with turnover rising by more than 10% annually to reach £10.5bn in 2022, surpassing its original 2025 target five years early. The sector now employs 46,000 people across more than 750 organisations. Key life sciences clusters are in Glasgow, Edinburgh, Dundee and Aberdeen, where professional activities aligned with life sciences employment are concentrated.
The report highlights Scotland’s growing talent base, with several Scottish institutions supplying life sciences talent. Locations near clinical settings with access to talent – including major hospitals and translational research centres – are emerging as strong drivers for incoming and expanding research and development companies.
However, the report highlights growing pressure on the property market that supports the sector.
Over the past two years, 140 enquiries for laboratory, office and manufacturing space have been recorded across the Scottish Enterprise area, representing more than 1.2 million sq ft of demand. Laboratory space accounted for 84% of all enquiries, with Edinburgh seeing the highest demand (by sq ft) across all property types, totalling 80 enquiries.
Almost half of enquiries came from start-ups and SMEs seeking to grow within Scotland, while 72% of companies cited expansion as the primary reason for seeking new space.
Despite this strong demand, supply remains limited. The report identifies clear gaps in mid-sized “grow-on” laboratory facilities for scaling companies and in larger specialist manufacturing space, including Good Manufacturing Practice (GMP) facilities.
While new schemes are emerging across Scotland’s main life sciences clusters in Edinburgh, Glasgow, Dundee and Aberdeen, a significant proportion of the development pipeline remains at an early stage without planning consent or committed delivery timelines. This raises the risk that demand could outpace supply over the next three to five years. Development viability also remains a challenge, with many existing projects only progressing with public sector funding support.
The report highlights that targeted investment, flexible development models and closer collaboration between the public and private sectors will be key to ensuring Scotland’s infrastructure keeps pace with demand and supports the ambition to grow the life sciences sector.
Angela Lowe, head of CBRE’s Edinburgh office, said: “Scotland has a huge opportunity to build on the remarkable momentum in our life sciences sector. Over the past decade, we’ve seen outstanding growth, world-class research, and a pipeline of innovative companies ready to scale, but to fully realise that opportunity, we need the right space for them to grow.
“Our analysis shows that demand for specialist laboratory and manufacturing facilities is rising rapidly, and the current development pipeline may struggle to keep pace. If Scotland wants to remain a destination of choice for life sciences investment, delivering flexible, high-quality facilities – particularly mid-sized scale-up space and specialist infrastructure – will be essential.
“Unlocking this opportunity will require strong collaboration between the public and private sectors to accelerate development and ensure the infrastructure is in place to support the sector’s next phase of growth.”
The full report is available to view here.