The Biotech Founder’s Guide to Finding Affordable Lab Space That Supports Growth

When you are launching a biotech company, one of the most challenging tasks in front of you is finding affordable lab space. Not only can your costs quickly get out of control if you aren’t careful, but you also run the risk of securing a space that limits your growth or doesn’t provide what you may need down the road, such as biological materials or expensive equipment.

“Determining which lab space is right for you depends on the stage of development, availability of resources at your disposal, and one’s appetite for risk,” said Johnathon Anderson, PhD, a research scientist, CEO of Peptide Systems, and associate professor at the UC Davis School of Medicine. “There are some clear deliverables that any lab space must have, such as sufficient size and availability of essential equipment.”

The key is being strategic and thoughtful in your approach. Doing so allows you to secure lab space that not only suits your budgetary constraints but also gives you room to expand and network. You may even find that some lab spaces allow you to interact with potential investors and learn from those around you, without completely breaking the bank.

In this article, you will learn how to identify your options, leverage your resources, and secure a space that not only meets your technical needs but will be instrumental in the future success of your biotech company. After all, the cost of the lab, while very important, is not the only factor you need to consider. The room for growth and the ecosystem that you choose also play an important role.

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What Options Are Available?

The first step in finding affordable lab space is knowing what options are out there. In general, when looking for lab space, you may want to explore incubators, including those affiliated with universities. You also might want to consider science parks, co-working style labs, and even outsourcing. Each of these options can be effective and are often particularly well-suited for those just getting started.

“It would obviously be nice to purchase and build out your own custom research and manufacturing facilities that have the capacity to scale as needed,” said Anderson, who has lab expertise in regenerative medicine, stem cell therapies, and translational drug development. “However, many biotech start-ups are resource-constrained and need to carefully consider major expenditures. This is when it’s really advantageous to lease shared lab space in an incubator that can provide much of what you need to get going in the early and mid-term stages of development.”

University Labs, Shared Lab Spaces, and Incubators

Many scientists like to have complete control over critical equipment needed to perform crucial studies, said Anderson. “But in the initial, resource-constrained stages of a new start-up, it’s really nice to have facilities with shared lab space and equipment to mitigate the team’s financial burn rate. These shared lab spaces can often lead to the cultivation of relationships across teams that can be both personally and professionally rewarding.”

In particular, start-ups originating from academic institutions can leverage university resources designed to help facilitate commercialization efforts for researchers with an interest in exploring that path, added Anderson. These programs help teams navigate building out their legal, regulatory, and business functions, in addition to providing access to experienced mentors and funding opportunities. “Each of these is a key aspect that scientist founders often under-appreciate but must learn to become successful.”

Bakar Bio Labs at the University of California Berkeley and Venture Catalyst at the University of California Davis are two examples that offer these types of opportunities. For instance, UC Berkeley is one of the leading public universities in the country, particularly in STEM fields, explained Gino Segrè, PhD, managing director of Bakar Bio Labs, a life science–focused incubator for startups. “So you’re getting all of that when you lease space at Bakar Labs—access to the campus, shared resources, advanced equipment, paid-for student interns, and perhaps faculty advisors—all set in the backdrop of a very vibrant urban environment.”

Bakar Bio Labs also has more than 80 events per year on relevant topics, Segrè said. “Some incubators won’t provide any content. It’s just a laboratory real estate operation, and that might be appropriate for some seasoned biotech companies who have done this before in some manner, but it’s probably not for a first-time founder.”

Overall, these types of spaces offer a number of advantages and may more readily fit into your budget while minimizing large upfront investments. You may find everything from individual benches to private labs with the opportunity for flexible and short-term leases where you share equipment, conference rooms, and a kitchen. They may also offer resources like business support, mentorship, and access to investor networks. And if they are located within a university, you may be able to collaborate with academic researchers, access premier research equipment, and utilize talent pipelines.

Co-Locating With Established Biotech Companies

If incubators or university spaces are not viable or not available in an area where you want to be located, you can also explore subleasing or co-locating within an existing biotech company’s facility. Some mature biotech firms have excess lab space or unused suites they are willing to lease at competitive rates. To find these spaces, you may need a real estate broker specializing in life sciences to help you secure such arrangements.

The advantage to co-locating with an established biotech company, especially one doing research that is similar or adjacent to your research, is that they often have the equipment, infrastructure, and compliance systems you need readily available. Operational costs for maintenance, utilities, and safety compliance may also be negotiated into the lease agreement.

There may even be opportunities for collaboration, idea sharing, networking, and mentorship. Of course, not all co-locating partnerships are ideal. You may need an attorney to ensure your proprietary research and intellectual property are safeguarded while co-locating with another company.

Outsourcing Some Lab Work

Another option that has advantages—and could potentially help manage lab overhead costs while adding credibility—is outsourcing the research and process development work needed to reach the next inflection point for biotech start-ups, said Anderson. “For example, having key studies performed by a contract research organization with extensive experience and name recognition, such as Charles River Labs, can elevate the credibility of the resulting data. These working relationships can also be rather flexible and leveraged ad hoc, as needed.”

One advantage to outsourcing is that you don’t need to allocate capital upfront to build out a lab for more complex experiments. And utilizing these entities gives you access to specialized expertise and equipment. On the flip side, outsourcing could mean limited control and slower turnaround speed.

Applied selectively, outsourcing can be a smart option, said Segrè. “It can be some lab work, analytical work, or even mouse work. People do it all the time with sequencing, and a solid ecosystem is well equipped to help determine what should be handled externally and when.”

Why an Ecosystem Is So Important

Ideally, your new lab space will give you access to an environment and ecosystem that can introduce you to funding sources, legal teams, potential business partners, and regulatory expertise, said Anderson. “Silicon Valley is the classic example of the value of having a great start-up ecosystem in close geographical proximity. Similar hubs exist in the biotech space across different parts of the country like San Francisco, San Diego, Seattle, Boston, and others.”

Keep in mind that sometimes a lower price for space represents a lack of ecosystem, said Segrè. “People sometimes need to be with other people, and in a lab environment—particularly in an entrepreneurial environment—you also need support from various service providers.”

A strong ecosystem also gives you an address that investors find credible, added Segrè. “So when it comes to affordability, it’s cost versus value, and you need to find the highest value at the end of the day.”

Should You Relocate?

If you’re located far away from current biotech hubs, Anderson said it might be worth considering moving to a target-rich ecosystem. “Having said that, there is a lot of interest in the biotech space, and different areas of the country are starting to offer more incentives for founders to keep their companies local and help develop their own ecosystem.”

Some up-and-coming markets that may be worth pursuing include New York City—home to Cure, the Alexandria Center for Life Science, and Harlem Biospace—as well as locations in Raleigh, North Carolina, and Seattle, Washington. For instance, Research Triangle Park in North Carolina is a large innovation hub near Raleigh and Durham and is home to many biotech companies like GlaxoSmithKline.

RTP is also in close proximity to major universities including Duke University, North Carolina State University, and the University of North Carolina at Chapel Hill. This means there are a lot of affordable lab spaces, including university options and incubators, to consider in the area.

Keep in mind that startup growth in these areas can sometimes be capital constrained, said Segrè. “The reason is because investors aren’t seeing you, and it ends up taking longer than for those who go out and seek a bigger ecosystem.”

How to Be Strategic With Your Search

The first step in finding the right lab space is figuring out the scope of your needs, said Segrè. “First-time founders need to look for spaces that give them support even when they think they can do everything themselves or believe they have to grind it out by themselves. What you learn over time—hopefully sooner rather than later—is that your time is more valuable than your money.”

So, while price is important, it is just one criterion to consider. You also need to determine what equipment is provided within the lab, what the ecosystem is like, and whether other services are available.

“For instance, what is the nature of the ecosystem associated with a particular facility?” said Anderson. “Will you have ample opportunity to network with others in the field? Are there opportunities to build out your company’s team? Will you gain access to private, invitation-only opportunities to pitch to venture capital firms?”

He said many opportunities arise from building relationships with like-minded individuals in your lab space. “Developing relationships with other teams in shared lab space—teams that are sometimes at different stages of development—might open doors you didn’t even know existed.”

Understand Your Needs and Workflow

Before you start searching for lab space, you should have a well-developed sense of what your workflow looks like and what your equipment needs are going to be, suggested Segrè. “If the landlord is not providing the equipment, and a tenant is not sharing the equipment, then it's now on the founder to bring the equipment in, and that's another capital expense to plan for.”

Also, don’t just check a box on equipment needs, he said. “A savvy biotech founder would ask more questions about the equipment on the bench. They should ask how often it gets used and if there is a fee associated with it. Is it well maintained? You must kick the tires, in a sense, or at least probe a little deeper when looking at lab space.”

Talk to Others

According to Segrè, biotech founders often go by word of mouth to find lab space. “That's how we find our best clients. And I think the savvy person looking for lab space is going to ask around and then talk with actual tenants to determine what their experience has been.”

Consider the Aesthetics and Location

If you're going to recruit employees or build your company, Segrè said you must consider whether the space is located where people would want to work. “Will you be able to attract talent? There are dark, windowless labs out there that are not a very happy place to work, and people may not want to spend long hours there, even if the lab is more affordable.”

Think About Functionality Beyond the Lab

While securing an affordable space is important for your bottom line, you also have to ensure it meets all of your needs—not just the lab-based needs. In other words, is this a place where you can have meetings or bring investors by?

“You need to be aware of the choices you're making and what the trade-offs are,” said Segrè. “For instance, is this a place you'd want to bring investors? If not, are there some workarounds? Still, investors will, at some point, want to see you in action. Bakar Labs and some of the other top-performing incubators are places where you can bring any kind of VIP.”

How to Balance Costs With Resources

Lab space can be expensive, particularly in areas known for biotech innovation. In fact, some experts indicate that a single lab bench at LabCentral in Kendall Square in Cambridge was $4,600 monthly in 2019. In 2024, Cushman and Wakefield’s Life Sciences Fit-Out Cost Guide indicated that lab space averaged $846 per square foot. They also found that the most affordable spaces were in Seattle and the Raleigh–Durham areas.

“Typically, people who are looking for lab space want to know what the price of one bench will be on a per-month basis, because that's the way an incubator model works,” said Segrè. “It's very capital efficient for startups because it is the minimum amount of space to be leased—one bench and one desk.”

Of course, prices vary widely. “Boston is perhaps the most expensive, with some areas being double or triple what the Bay Area is. But people will pay those prices to be in Kendall Square. On average in the Bay Area, we have six-foot benches that are $1,600 a month. But the question ultimately, for the savvy founder or entrepreneur, is: ‘What am I getting around that bench?’ Because it comes down to the ecosystem question.”

Finding appropriate lab space isn't just about the cost, he said. “It's who your neighbor is, who the operator is, what the mission of that operator is, what kind of content is accessible to them, and so on. You really want to know what is being delivered.”

How to Allow Room for Growth Without Overcommitting

When securing lab space, it’s tempting to enter into a lease that provides more space than you immediately need or can use. But doing so ties up funds that might be better spent elsewhere.

Instead, look for ways to balance affordability with versatility. You want to grow as your research needs expand, but not at the expense of other important expenditures.

Here are some things to keep in mind:

• Look for a location that will get you through the next one to two years rather than securing your ultimate dream lab.

• Ensure the lab meets your immediate needs but also has options for growth or expansion if needed.

• Determine what is included and what isn’t so you can budget appropriately.

• Weigh the pros and cons of the cost, the ecosystem, and the working environment.

• Seek input from your company’s stakeholders and ask mentors for their perspective.

• Negotiate short-term or flexible lease terms when you can, with options for renewals and expansion built in.

• Ask about tenant improvement allowances that allow you to customize spaces with little upfront cost.

• Avoid adding permanent fixtures or equipment and instead opt for items you can move if you relocate.