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Boston and Cambridge are the nation’s leading life science cluster, growing faster than anywhere else in the country between 2014 and 2017 according to CBRE research. Talent, funding, universities and hospitals have contributed to the market’s strength and growth, and lab requirements regularly outpace available capacity.
This makes lab space a hot commodity, particularly in East Cambridge where rents at $93.12 triple-net per square foot continue to increase, and availability at 6.5 percent and vacancy at 1.8 percent are amongst the lowest in the country.
Several new trends have emerged from the area’s lab space shortage. Defensive leasing, when tenants take more space than they need and sublease the unused space, is on the rise. In addition, tenants have consolidated office space to allow more room for lab space, and landlords are converting office buildings into lab space. Also, high rents and low vacancy are driving opportunity in other nearby markets proximate to East Cambridge.
The extremely competitive lab market can be hard to navigate for small- to medium-sized life science firms in need of space. Additionally, square footage per scientist is decreasing and challenging owners, occupants and designers to get creative in order to maximize space utilization.
With that in mind, CBRE’s consulting practice has a specific team designated for lab workplace strategy for life science firms of any stage. We help meet life science firms’ dynamic workplace needs by assisting in recommending designs and providing solutions that allow for flexibility, increase workflow efficiency and enhance collaboration.
Allow for Flexibility
Conventionally, in life science labs, capital is spent on expensive infrastructure, materials and technology based on norms that may not be applicable to early stage biotech. We challenge design teams to rethink these norms and develop concepts and engineering solutions that are right-sized for the company’s stage of development and that can adapt to various R&D outcomes.
The result is a capital-efficient, flexible space that benefits both landlords and tenants.
Flexible spaces benefit landlords because they can easily and cost-effectively be repurposed for another tenant. Flexible spaces benefit tenants because they can be reformatted to reflect the dynamic and ever-changing needs of a company. This may allow a tenant to stay within their space for a longer term – not having to vie for new space in Greater Boston’s competitive lab market – and not have to redesign, renovate or rebuild their existing space.
Increase Workflow Efficiency
In many cases, office areas are located far from a lab facility, making it difficult for scientists to multitask while performing experiments. Incorporating workplace strategies into a lab environment improves employee efficiency and enhances the lab environment.
By integrating clean breakout spaces, conference areas, soft seating areas and offices on the perimeter of the lab, scientists can multitask and save time traveling to and from their labs and desks.
To understand the best solution for life science firms, we gain an understanding of how various employees within the organization work and translate those into space plans that improve productivity, with safety top of mind.
Enhance Collaboration
According to CBRE research, a typical lab in the life sciences industry devotes just 7 percent of its space to collaboration, despite the increased need for cross functional, external engagement and scientific interaction.
Alan Koder
Leveraging technology tools and setting aside physical spaces for collaboration helps create environments that encourage interactions to happen organically, helping to promote innovation. This can take the form of incorporating open and shared laboratories into lab design, which can improve utilization of expensive scientific equipment and reduce the need for dedicated instruments and bench space. The overall result is reduced costs along with increased opportunities for collaboration.
Allowing for flexibility, improving workflow efficiency and enhancing collaboration translates into money saved in operation and real estate expenses for life sciences firms. These components together aide in creating a more desirable work environment, which can help attract and retain talent. These funds can be allocated towards R&D expenditures, helping firms focus on their scientific activities and their core mission.
Alan Koder is a member of the CBRE Boston consulting practice with expertise in life science operations and lab strategy
