But it can be hard to break into this fledgling real estate market. Life science properties still total fewer than 200 million square feet.\u00a0<\/p>\n
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READ ALSO:<\/strong> Emerging Life Science Hubs Stake a Claim<\/a><\/p>\n So how can a developer get their foot in the door? Life science experts say development alone won\u2019t attract startups, never mind the Pfizers or Amgens. If you want long-term leases with high-profile tenants, you’ll need a development strategy that caters to both their technical needs and workflows. And don\u2019t forget the Golden Rule: location, location, location.<\/p>\n\n\n Any speculative development in a dense, competitive market must consider technical needs as early as possible, according to Cynthia NeSmith-Montanez, senior director of MGAC<\/strong>\u2019s Northern California office. For life science, specs can get really specific really fast.<\/p>\n \u201cHow much do you need in the way of electricity?” NeSmith-Montanez asked. “What do you need in the way of special filtration systems? Do you need (deionized) water?\u201d<\/p>\n READ ALSO:<\/strong> Life Science Market to Bounce Back<\/a><\/p>\n Ryan Cos. <\/strong>prefers a preemptive approach, and virtual and augmented reality allows for direct property assessments. \u201c(These) really walk people through spaces so they can touch and feel how they operate before they even spend a dollar,\u201d said Adam Burrington, the firm\u2019s national director of project development for life science.<\/p>\n The keyword to all this? Plenty.<\/p>\n \u201cWe want to make sure that there is plenty of power and ventilation, as well as strong fiber connectivity,\u201d noted Sondra Wenger, head of the Americas commercial operator division at CBRE Investment Management<\/strong>. That idea also extends to the layouts and floorplate configurations.<\/p>\n The exterior of 1229 W. Concord Place, a 285,000-square-foot facility developed on Chicago\u2019s riverfront. The facility is a component of the Lincoln Yards master plan, a 50-acre project that includes creative office, retail and recreational space, in addition to 6,000 planned residential units. Photo by Kendall McCaugherty, Hall+Merrick Photographers<\/em><\/p><\/div>\n At the Navy Yard, a Philadelphia mixed-use campus with more than 1 million square feet of life science space, developers Ensemble Investments<\/strong> and Mosaic Development Group <\/strong>designed spaces to include 11-foot lab modules, with 50- by 22-foot column bays, despite the diverse array of offerings.<\/p>\n Such specifications \u201care a lab planner\u2019s dream because they allow them to build a long rectangle on the most efficient floor possible that eliminates waste,\u201d according to Mark Seltzer, managing director with Ensemble.<\/p>\n Ryan Cos. involves a lab planner from day one. \u201cYou have to make sure that all of your dimensions work for your turnarounds and otherwise,\u201d Seltzer added. This includes mechanical specs.<\/p>\n Another must-have is ample loading docks leading to secure storage spaces in light of how many materials and how much equipment flow through such buildings. \u00a0<\/p>\n \u201cWe have a large, fully enclosed loading dock and service areas, recognizing that different tenants have different equipment needs, and we want to ensure that we are providing enough space so it can be done with ease,\u201d mentioned Suzet McKinney, principal & director of life sciences at Sterling Bay<\/strong>, “This is something that tenants really care about.”<\/p>\n Sterling Bay serves life science tenants at 1229 W. Concord Place, a 285,000-square-foot property located along the Chicago riverfront.<\/p>\n Creating biosafety level 1 lab spaces that can be brought online quickly can also help developers attract tenants. The RMR Group<\/strong> adopted this approach at Unison Elliot Bay, a recently renovated, three-building campus in Seattle.<\/p>\n \u201cThese are going to be move-in ready, with minimal capital needed,\u201d pointed out Christopher Bilotto, executive vice president at The RMR Group. \u201cMaybe they have some desires around certain cosmetic looks, but all the mechanical infrastructure, lab benches, culture tissue rooms and office space (are there), so tenants can come in and start operating within a very short time.\u201d<\/p>\n Productivity is important, but so is presentability. Meeting space that includes training rooms, private conference centers and the right balance between lab and offices give tenants \u201cfunctionality in the building, and an attractive backdrop to keep employees focused on the work,\u201d Bilotto concluded.<\/p>\n Located at 100 Binney St. in Cambridge, Mass.\u2019 Kendall Square neighborhood, The Alexandria Center at Kendall Square is a 10-story, 432,000-square-foot life science building close to the city\u2019s top universities, as well as its myriad other life science companies. Tenants include pharmaceutical giant Briston Myers Squibb, as well as several smaller cancer treatment research companies. Image courtesy of Newmark<\/em><\/p><\/div>\n Of course, the developer’s checklist is never complete without the where<\/em>. \u201c(Tenants want) to make sure they have access to the talent pool, to educational institutions, that there is plenty of other companies around them.\u201d CBRE IM\u2019s Wenger emphasized.<\/p>\n Boston’s Kendall Square hub in Cambridge is located near both Harvard University and MIT. That, and the existing infrastructure, were key considerations when CBRE IM purchased 100 Binney and 300 Third St. two years ago. \u201cYou have all these great biotech companies, combined with heavyweight institutions, and they are all feeding off each other and sharing talent,” Wenger said. “The cluster itself is an amenity.\u201d\u00a0<\/p>\n READ ALSO:<\/strong> Life Sciences Bolster Boston\u2019s Office Pipeline<\/a><\/p>\n South San Francisco, the birthplace of biotech, has long been a magnet for life science tenants for its proximity to Stanford and Berkeley. But developers of newer spaces are getting an edge by equipping their buildings with manufacturing capabilities.<\/p>\n \u201cA client we are in conversations with (that) does third-party manufacturing is looking into expanding into Alameda, not so much because it is (R&D) space, but because it is manufacturing space,\u201d MGAC\u2019s Montanez reasoned.<\/p>\n On the other hand, smaller tenants seeking value-oriented spaces without compromising on technology and accessibility may look to markets that are peripheral to these hubs.<\/p>\n
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Specific, yet versatile<\/h2>\n
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<\/a>Clusters, hubs and huddles<\/h2>\n
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