By Caitlin Greenwood and Jane Kepros
The US life science commercial real estate market currently has an excess of lab and office space. According to JLL’s report, 2024 Life Sciences Real Estate Perspective and Cluster Analysis, an estimated 50 million square feet of laboratory space sits vacant across the US. As companies seek to reduce operating costs, many are downsizing their real estate footprint. Consequently, startups and established companies alike are now leasing space from one another. It is essential that those looking to sublease space do their due diligence to ensure selection of adequate space to meet their needs.
Clarify the terms of your sublease
It is crucial for both parties involved to clearly define and understand the terms of any sublease. The lease should specify what changes can and cannot be made within the space and how the space must be returned. Many professionals can assist with reviewing the lease, including a commercial real estate broker, owner’s project manager, and/or legal counsel. They can help you understand what is and is not included and guide you through the negotiation process if you choose to proceed. Additionally, this is a good time to engage a lab planner for pre-programming to confirm that the space requirements will fit within the available footprint.
Define your program needs
The pre-programming phase provides a high-level review of space needs to help define program requirements and identify any potential obstacles before signing a lease. But once the lease is signed, a more detailed programming and planning phase is essential to refine the program requirements.
A thorough programming process helps busy lab managers and their operations team establish critical program elements, including, but not limited to, laboratory, office, amenity, and support space, as well as furniture, equipment, and utility requirements. This process is an important step in creating a functional environment that supports both scientific work and the needs of the staff.
Evaluate existing infrastructure
Once the program is defined, understanding how the space was constructed and how it can or cannot support your program will impact the extent of renovations required to meet the company’s needs. It is important to allocate funds wisely, prioritizing expenditures that are critical for science or workstreams. For example, using existing manifolds and pre-plumbed lab gas lines can be a great option, but if they do not exist or have not been adequately maintained, then use of local gas cylinders may be a better solution. Understanding what is available and included is important to make these decisions.
Identify modular or point-of-use options
Incorporating modular elements into a subleased space can be beneficial. If renovations are needed, modular systems like demountable walls and flexible furniture solutions—such as mobile casework, storage systems, and carts—can be utilized. This approach allows the subletter to easily return it to its original condition and take these items with them when they move to a new location.
There are also countless point-of-use options for many elements used or required in a laboratory, including alarms, vacuum pumps, ductless fume hoods, etc. A freestanding eyewash station or other safety elements could even be an effective solution, based on the use case and local code. Collaborating with an architect, lab planner, safety consultant, and mechanical, electrical, and plumbing engineer can help identify these cost-saving measures.
Ensure your space reflects your company culture
Creating a unique space that captures a company’s culture does not have to be expensive or permanent. Paint colors, signage, artwork, and personalized décor can go a long way in capturing the spirit of your company. Consider how employees like to engage in selecting unique additions to the space, such as a game table or special coffee machine. These items can be incorporated into your next space to help maintain company identity moving forward.
As subleasing lab spaces becomes more common, it is essential for companies to understand what is and is not allowed in these spaces, as well as how to customize them affordably. The available space may be fully fit-out and furnished, or it could be an empty shell. While some companies, for example, many start-ups transitioning from an incubator, may find a furnished, turn-key solution sufficient for their scientific and workplace needs, other companies may prefer an empty space that they can design to better support their workflows and needs. By following a straightforward roadmap and conducting a thorough due diligence, companies can thrive in their temporary spaces until they are ready to move on.
This article originally appeared in Lab Manager.