What Makes a Good Life Sciences Real Estate Conversion?
Abstract
The life sciences industry is in such high demand, and with only so much available real estate, so the opportunity for life science conversions has made itself known. Office landlords, in particular, are grappling with a glut of empty office space that must be put into use, building brand-new life science developments takes quite a bit of time, and time isn't exactly compatible with the newfound sense of urgency for life science buildings. Since demand for life science buildings has quickly outpaced supply, many office landlords are finding that life science conversions are a feasible way to optimize their existing real estate. A recent report from CBRE shows that in the 12 largest U.S. life science markets, lab and life science lease rates across the U.S. increased by an average of 11 percent last year. The wiring in the building will have to change as well since electrical in life science buildings are typically placed on the ceiling to support lab modules. "I'd like to pretend that we were these tremendous visionaries who immediately knew that this was going to become a life science space, but our initial thought was to develop a generic industrial space. But the markets have a funny way of telling you what real estate wants to be when it grows up." The Plymouth Group may not have understood that they could've easily slid into a life science conversion, but it became fairly obvious after the company purchased the plant. While life science conversions are trending, it's critical for building owners to consider the unique needs of the life sciences industry and how their facility may best suit those needs if they want to reposition some or all of their property for life science tenants.