These Buildings are Good Candidates for Life Science Conversions
Developing life sciences building is a highly technical pursuit and not all buildings are suited for the asset class.
As some segments of real estate have struggled during the pandemic, life sciences is taking off.
To capture some of this demand, institutional investors in the largest life science markets are actively reevaluating “highest and best use” for their office, flex and industrial portfolios, according to a new report by Newmark.
Many of these investors are considering converting these office, flex and industrial portfolios to meet immediate life science demand. The problem is that developing life sciences building is a highly technical pursuit, and life sciences developers and operators have several advantages in the sector.
Good Candidates for Conversion
Part of the complication with conversions is that life sciences favor “low and wide” buildings with large floor plates in flexible zoning districts, according to Newmark. Tall and skinny buildings in dense urban areas don’t work as well.
“It’s harder with the multilevel buildings because a lot of office buildings are not built with sufficient ceiling height,” Jennifer Luoni, director of operations at Dacon, a Boston-area design-build firm, told GlobeSt.com in an earlier interview.
However, life sciences buildings do need taller ceilings, typically with 13- to 15-feet interior clear heights. Furthermore, Newmark says firms like Novartis or Pfizer expect 15 to 18 feet floor-to-floor heights. The additional height is needed for extensive HVAC equipment and power systems.
“HVAC is a huge component and so is the ceiling height,” Luoni says. “A plenum for return air is not used, so it needs an actual ducted return.”
However, HVAC requirements vary depending on the type of laboratory. Usually, recirculated air is not permitted. In the case of power outages or natural disasters, it is important to have backups for electric and critical systems, including emergency generators and an uninterruptible power system (UPS). At the least, 16W-20W/SF of electrical power is required, according to Newmark.
While the typical office requires 80 to 100 pounds per square foot (PSF), wet lab space needs 100 to 150 pounds PSF. Usually, 40% to 60% of the rentable area is for wet labs.