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.
High-hazard areas, often referred to as “H-rooms,” allow scientists to conduct research, and companies to manufacture, process, or store different types of hazardous substances in quantities greater than what is permitted in standard control areas. Control areas have been established in the International Building Code (IBC) and National Fire Protection Association (NFPA) to limit the number of hazardous materials that are used in a space to keep the occupants of the space, and adjacent spaces, safe. As you go vertically up in a building, control areas increasingly restrict the amount of these materials allowed in the space. This is because higher up in a building, it is more difficult for the local emergency teams to control the hazards, such as for a fire department to contain a large fire when their ladders cannot reach the floor where it is located.
There are different types of high-hazard spaces, classified by the IBC as H-1 through H-5. These classifications are based on the types of materials used in them and the hazards that are present. No matter the classification, high-hazard spaces can add substantial cost to a project, so their use is often limited to areas critical to a company’s business operations.
Why Companies Need High-Hazard Space
Different industries and site types utilize high-hazard spaces to perform functions critical to their business operations. For instance, medicinal chemists working in pharmaceutical laboratories often require these spaces to store larger quantities of flammable liquids for their experiments to proceed efficiently. Central chemical storage rooms, classified as high-hazard spaces, may free up more allowance for in-use chemicals across a floor or within a building or suite.
Manufacturing facilities often designate parts of their facility to high hazard working areas to ensure their process is happening safely, minimizing risk to their employees and avoiding disruptions to their production. Raw materials can be stored in high hazard areas as well.
Hazard Categories
The IBC classification of high hazard space is a numerical system H-1 through H-5. This is often considered to be a 5-level ranked numbering system, like the category ratings assigned to hurricanes or tornados, but that is only partially true. The first three levels, H-1, H-2, H-3, do represent similar hazards in decreasing severity, but H-4 and H-5 are for different categories of hazards altogether.
The differences among the levels include:
H-1 spaces contain materials with detonation potential.
H-2 spaces contain materials that promote accelerated burning.
H-3 spaces contain materials that are easily combustible or pose a physical hazard.
H-4 spaces contain materials that pose a health hazard, including toxic and corrosive chemicals.
H-5 spaces are specially classified to contain materials typically used in semiconductor fabrication facilities.
All these hazardous materials can cause significant damage and risk in the event of an incident, so extreme care should be used when designing for any level of high-hazard space.
Determining a Spaces Hazard Level
Before entering lease negotiations, a company should assess whether they require high-hazard space, since not all properties can accommodate such spaces. The company’s Environmental, Health, and Safety (EH&S) department, along with the end users and design team, should work with a code consultant to confirm the types of hazardous materials used in the facility. Sometimes, a hazard analysis is necessary to better understand the materials being stored and used. This analysis can also help identify ways to make the process safer or more efficient.
A local fire department or other city official may need to be involved in the design process to address any safety concerns early and prevent delays during the permitting and construction process. If a space needs to accommodate multiple hazards, the code requirements for the most restrictive level must be followed, and appropriate segregation of hazardous materials must be managed.
Cost and Schedule Implications of High-Hazard Spaces
The construction requirements for maintaining safety in high-hazard spaces are very strict and go beyond those for a typical laboratory, manufacturing, or storage space. Architectural elements such as fire-resistant walls, ceilings, and flooring materials are required to separate hazardous spaces from adjacent areas, and special finishes are required within the space itself.
Shorter egress routes are a requirement for high-hazard spaces, which limits their placement within a building. In some cases, they may even need to be situated on an exterior wall. High-hazard spaces are limited in size, usually to no more than 500 square feet. Both new and existing buildings often require modifications to the construction of the space to comply with the requirements for a high-hazard space.
Mechanical, electrical, plumbing, and fire protection considerations are also more complex than for non-hazard spaces. Higher amounts of ventilation, as well as dedicated exhaust, may be required. Explosion-proof electrical devices are frequently required due to the possibility that chemical vapors could ignite from an electrical arc. There must be adequate containment to capture any potentially contaminated water if the sprinkler system goes off.
When creating high-hazard spaces, having an experienced design and construction team onboard is critical. To successfully design and construct the space, it is important for end users to provide as much information as possible during the programming and design phases. By doing so, any additional costs for special fixtures, finishes, equipment, etc. can be identified early on, and the construction schedule can be streamlined to accommodate long-lead items and special installations.
