Unmet Demand for Lab Spaces Amongst Life-Science Startups

Proliferating Demand for Mini Lab in life science start-ups

We spoke briefly of how smaller space is more esteemed for life science companies, and such demand is especially seen in start-ups. In areas like Boston, it is prevalent to have start-up firms using shared lab space as the number of biotech companies skyrocketed in the past 10 years. In this newsletter, we will get a glimpse into the discussion of potential enhancement of life science infrastructure and how Pyrinas helps achieve such goal.

International Biotech Cluster: The Current Landscape

Life science start-ups are flourishing in the Cambridge-Boston area: since 2018, the number of biotech companies exceeded 500 (Massachusetts Biotechnology Council, 2019). According to the U.S Bureau of Labour Statistics and the Massachusetts Biotechnology Council, there is an overall 71% increase in the use of commercial lab space in the past ten years, with approximately over 29 million square feet used as commercial laboratory at the moment (Bitar, 2018). Not to mention there are top colleagues from MIT, Harvard, Northeastern University and Boston University, providing the area with profuse research talents (Rissola, Bevilacqua, Monardo, Trillo, 2019). It entails business advantages with high concentration of research facilities, state investment and sustainable high-skilled manpower (Sarmah-Hightower, 2019).

Biotech Infrastructural Development in the Long Run

Although we witness such growth in Boston, there are few concerns for long-term development. The uppermost issue refers to availabilities to lab facilities – there are many state-of-the-art labs in the area, but the current vacant rate is only 0.1% (Khatri, 2019). Supply is more insufficient when tenants prefer to lease them to priority groups such as universities, licensed corporates. Early-stage start-ups do not need much lab space whilst budget is a huge constraint when picking affordable labs. Likewise, as noted by Patrick Sission (2018), the Cambridge-Boston area is notorious for its extended commutes. Not to mention the ever-changing technology in life-science entails risk of cybersecurity and the redevelopment of internet-dependent infrastructure is urgently needed (Schabacker, Levy, Fowler, Dickey, 2019).

Pyrinas US Healthcare Real Estate Fund: Satisfy Unmet Needs

Since startups are unable to take up bare-shell lab spaces due to high fit-out cost, Pyrinas is eager improve the situation through our US Healthcare Real Estate fund. The fund aims at value-added investment opportunities in key locations including Greater Boston, San Francisco and Houston in the U.S. and Toronto in Canada with capability for conversion to life sciences laboratory space and en-bloc renovation projects. Pyrinas strives to transform these locations to key activities area for researchers and scientists. We will provide tenants with plug-and-play office, laboratory and co-working space; support resources, shared equipment and services; creative amenities and strategic programming to enhance growth trajectories and to satisfy unmet needs for turn-key office or laboratory space.

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