Labs at Mass. General Hospital in Boston.

Since the mid 1990s, biotechnology has emerged as a leading employer, particularly in the northeast (Boston, New York/New Jersey, Philadelphia, Washington, DC/Baltimore) and in California (San Francisco, Los Angeles, and San Diego). In Massachusetts alone there are over 40,000 people employed in biotechnology in nearly 400 companies. In Connecticut, another 18,000 jobs are in biotech. Further, it is estimated that for every biotechnology job, an additional 5 supporting jobs are required – all of which means that finding facilities to house this growing industry is an important consideration.

Specialized Requirements

Biotechnology firms require specialized infrastructure – including buildings, equipment, and staff – to ensure success. This is critical to the productivity of life science personnel and in enabling and protecting the work that must be done to create, produce, and deliver new processes, drugs and treatments to improve human health.

This specialized infrastructure has very specific criteria. For example, high bay areas with large, open floor plates are required for maximum flexibility. Generous floor-to-floor heights and substantial floor load capacities are essential for adapting to biotech use. Older facilities can lend themselves to adaptive reuse by virtue of being originally designed to accommodate much larger equipment and bulkier building systems.

Because of the heavy equipment that is typically needed in biotechnology facilities, single story or low rise facilities are the most appropriate and efficient. Manufacturing and warehouse facilities are often considered. If a high rise building is used, then easy vertical transportation systems must be in place.

Build Or Re-Use?

With the industry experiencing steady and stable growth, as well as continued funding by venture capital and pharmaceutical companies, there is a growing need for new facilities. Companies have two options – to build a custom facility, or to adapt an existing facility to meet its specialized needs.

New, customized facilities offer maximum flexibility, but are often prohibitively expensive to build. The long lead time required to deliver a new building may mean that the firm’s products could be delayed in coming on the market. Biotech companies operating on venture capital funding may also be reluctant to use scarce resources to build new facilities. Adaptive re-use of existing structures is an option when a suitable facility can be found and retrofitted to meet a biotech firm’s specialized needs.

There are several unique challenges to convert an existing building not originally designed as a laboratory. Flexibility is crucial in a rapidly changing market. Utility infrastructure must accommodate a wide range of services such as power, compressed air, vacuum, natural gas, nitrogen, purified water, carbon dioxide and others.

The building envelop may require upgrading to ensure the ability to control temperature and humidity, and the flooring and shell must meet minimum vibration specifications. Adequate space for specialized air circulation, intake and exhaust requirements must be provided.

For biotechnology companies, adaptive reuse may offer significant advantages: renovating an existing building may be faster to occupancy than building a new facility; it can be less costly, unless the facilities are highly technical; and there are sustainability advantages in using existing resources. However, to be successful, a renovated facility must first be suitable for the program, and during the renovation process hidden or unknown conditions may be discovered that constrain the use of the space.

A thorough initial assessment of an existing facility is essential. Uncovering potential issues such as hazardous materials, asbestos, lead paint and mold, as well as structural instability leading to vibration concerns are best revealed before a commitment is made.

Market Conditions

Currently in many areas it is a buyer’s market made to order for growth industries such as biopharmaceutical, health care, biotech, photovoltaic, and nanotechnology, which need to ramp production quickly and cost-effectively. BD BioScience in Miami, Florida, took advantage of market conditions when looking to expand its operations. The company found an existing manufacturing facility that can be easily retrofitted for its liquid process manufacturing. Now under construction, the building is flexible enough to meet most of BioScience’s requirements, and the company will be able to occupy this space faster than constructing new space.

In Connecticut, an existing telephone company building originally designed as a switching facility was successfully renovated into a multi-tenant biotech laboratory suite facility perfect for emerging life sciences companies looking for cost effective space. Since the original switching facility was designed to support large load tolerances, had a large open core area and substantial building system infrastructure in place, it was an ideal candidate for conversion to biotech use. Although it was a high-rise facility, it had a vertical transportation system in place and direct utility access.

Each Decision is Unique

In making the decision to adapt an existing building or build a new facility, firms must consider a number of factors. While the cost to build a new facility is usually higher, it can be more expensive to renovate buildings for highly specialized uses. According to HLW International LLP, biomedical facilities can cost from $320 to $1,200 per square foot to renovate, depending on the nature of the intended use. On the low end of the scale are software development labs or greenhouses, but Class 100 production facilities can easily cost over $1,000 per square foot to rehab.

Another consideration is the demographics of the surrounding area, and state or local regulations that are in place to protect residents. For example, there are typically regulations and restrictions regarding the exhaust of gases or toxic materials, and the new facility must demonstrate compliance with specific requirements regarding the proposed method of dissipating gases.

Local building codes and the fire department regulate the quantity of flammable and hazardous materials allowed to be stored on each floor of a facility. Another factor may be the complexity of the mechanical system design of the building being considered for re-use. It is not uncommon for laboratories to require stringent temperature and humidity controls. Typically, facilities require 100 percent dedicated fresh air intake that must be completely separated from the exhaust function. This requires special permitting and air studies as part of the development process.

Although there are many complex factors that go into the decision to pursue adaptive re-use, even the largest biotechnology companies will evaluate existing facilities in order to save time and money. If a location is ideal, and the building demonstrates flexibility, the advantages of earlier occupancy, cost savings and the added benefit of supporting sustainability through the reuse of existing facilities will outweigh disadvantages.