As DFW climbs the ranks of the US biotech markets, interest in life science and laboratory development is at an all-time high. CBRE ranks the Dallas cluster as the sixth strongest emerging life sciences market in the country thanks to airport connectivity, accessible land and strong educational institutions.
However, a significant impediment to the region’s growth as a leading center for life sciences is that DFW does not have the laboratory space. To support continued growth, the region needs to develop a mix of research and development (R&D) and biological manufacturing facilities to meet the specific needs of companies at different stages of development.
Dallas “has the talent and the ideas, but is lagging behind on physical infrastructure and funding, which is an indication [a] Market ripe for growth given thoughtful development,” noted commercial real estate consultant JLL in a recent report.
DFW developers and building owners have an opportunity to help DFW realize its potential by focusing on the needs of emerging young companies. Here are five ways developers can help fuel the biotech boom in DFW.
Build the missing center
On the journey from garage to IPO, biotech startups hit milestones where they need to scale quickly. In the beginning, co-working facilities such as Biolabs in Pegasus Park are ideal, offering start-ups space in a vibrant research environment without significant investments. But Dallas startups have few setup options after outgrowing coworking. And if you can’t find a place here, go somewhere else.
DFW needs speculative laboratory facilities: spaces that are 70 to 80 percent complete and can be quickly customized to specific tenant needs. The key to mitigating risk with this strategy is finding the right balance between a “wet lab ready” core and shell infrastructure that is flexible enough to adapt to the tenant’s unique operational needs.
Reposition class B office space
Speed to market is critical for growing biotech startups. They often need to be able to move in and be up and running within months, not years. There is an opportunity to retrofit the growing stock of vacant Class B office space. But there’s a steep learning curve to making a successful lab conversion.
Not every office building is suitable for a laboratory. A typical laboratory building has to absorb up to ten times more energy and four times more water than a conventional office. Laboratories require higher floor-to-floor heights and robust mechanical, electrical, and plumbing infrastructure to support connector loads and ventilation systems. Finding an existing office building that meets these requirements and can be efficiently retrofitted requires careful budget analysis and rigorous due diligence.
Develop Near Knowledge Hubs
San Francisco, San Diego and Boston thrive as biotech hubs in part because of their synergy with local academic and research institutions that provide access to funding and a pool of highly skilled workers. The best research clusters provide space for STEM education, human resource development, and incubator labs that serve as hubs for collaboration, innovation, and scholarly dialogue.
To be competitive, DFW should seek to develop vibrant urban enclaves connected to research and education districts. The areas around TCU’s new medical school, the UNT Health Sciences Center and Southside Medical District in Forth Worth, the Baylor Scott & White Texas A&M campus, the UT Southwestern Medical District in Dallas, and the UTSW/Texas Health Resources Medical Research campuses in Frisco are natural places to visit Home.
Anticipate the demand for sustainability
Businesses considering moving to DFW cite affordable rents and low energy bills as major benefits. Many also have environmental, social and governance (ESG) goals and high expectations for sustainable design. DFW needs to go beyond regular business to attract young biotech companies.
Laboratory buildings are notorious resource hogs, but a high-performance design can significantly reduce water, energy, and material consumption. The key is understanding the intricacies of lab operations and working with lab users to find ways to increase resource consumption beyond recycling the building envelope, efficient use of space, proper sizing of MEP systems, and incorporating natural ventilation and daylighting where appropriate, sustained improve performance as well as human health.
Attract talent with Human-Centered Labs
Coastal biotech centers invest in quality jobs to attract the best scientific talent. DFW keeps up by offering the next evolution in design for the scientific workplace with amenities that attract venture capital, philanthropy and star scientists.
Human-centric labs use a research-based methodology to support human health and well-being by offering a choice of work environments and integrating technology as an extension of the workforce. Biophilic environments provide recreational opportunities for scientists to restore focus and increase productivity. Institutions can also support mentoring, collaboration and inspiration, and contribute to mental and physical wellbeing by helping people from diverse backgrounds feel empowered to do their best work. This is where investing in a quality job moves from a recruitment tool to a real benefit for scientific discovery.
About the author
Isabel Mandujano leads the laboratory design practice for LPA Design Studios. As a founding member of the Texas Chapter of the International Institute for Sustainable Laboratories (I2SL), she specializes in creating high-performance laboratories that are inspiring, sustainable, functional and safe.
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