Developing Flexible and Affordable Lab Space for Small Businesses

Start-ups and small science-based businesses are driving demand for flexible, move-in-ready lab spaces located in vibrant urban hubs. Image: Courtesy of journey

New start-ups and other small science-based businesses have a growing need for lab space that is both flexible and designed with their needs in mind. Traditionally, lab buildings have been developed for large industrial R&D, but that model often fails to serve small and early-stage organizations. To explore new approaches to developing, leasing, and managing labs that work for small companies, we spoke with David Seddon (DS), co-founder, and Yasmin Khan-Osborne (YKO), asset manager of journey. 

Q: What are science and technology organizations typically looking for when choosing a lab space?

DS: Location is usually the first factor. For early-stage companies, being in an urban setting is a huge advantage—close to universities, venture capital networks, talent, and the amenities younger staff often want. Traditionally, most UK lab facilities have been in suburban science parks, away from these facilities.

Cost is another factor. Founders don’t want to spend precious funding on fitting out a lab. They’re looking for space that’s move-in ready, with benching, flooring, sinks, and utilities already in place to start work quickly. Flexibility is also crucial. Not every company grows in a straight line. Sometimes they need to expand quickly, other times they need to contract. Having the flexibility to scale space up and down is therefore paramount.

Q: Are there any recent trends that are changing how new lab space is being designed?

DS: Flexibility in design is vital. Historically, lab benching was fixed. Increasingly, we’re seeing mobile benching, which allows occupiers to reconfigure their space depending on what they need. Another shift is around backup power. For years, the assumption was that every lab needed an on-site generator. But most start-ups don’t consider that essential. Generators are expensive, noisy, and environmentally unfriendly. We provide a backup generator when required, but don’t burden every tenant with one full-time.

To learn more about considerations for start-ups and small companies when choosing lab space, read our companion article, “Considerations When Choosing New Lab Space,” at labmanager.com.

YKO: There’s also been a long-standing narrative that labs must have 4.5-meter ceilings and six air changes per hour. But we’ve seen plenty of successful R&D happening in retrofitted spaces with lower ceiling heights. The key is designing to actual user needs, not generic specifications. 

Q: What are the main challenges when developing lab spaces?

By supporting start-ups from their earliest stages, landlords and operators can build long-term relationships that grow into larger, lower-risk projects. Image: Courtesy of journey

YKO: Retrofitting can bring its own challenges. For example, making sure that large equipment can physically move through the building sounds simple, but can be tricky to get right—goods entrances, lifts, corridor widths, and turning circles all matter. We found that wider corridors at corners and using one-and-a-half leaf doors opposite each other can be used to efficiently adapt existing space.

DS: The developer must also consider the gross to net. In a new office building, you might lease 80 to 85 percent of the gross area. In an office-to-lab conversion, you’re often at 60to 65 percent, because you need more space for corridors, meeting rooms, shared equipment areas, and goods delivery. Trying to improve the ratio by cutting corners usually creates a building that simply doesn’t work operationally. 

Q: What are the main challenges with the ongoing management of lab spaces?

YKO: People underestimate how resource-intensive it is. You might fit 50 companies into 20,000 square feet, and each of those companies needs nearly the same level of support as a much larger tenant. That means a lot of staff time for things like technical support, health and safety, waste management, maintenance, cleaning, finance, and community-building. You need a properly sized team with real lab experience, not just general facilities staff. 

Q: What are a couple of the most important lessons you’ve learned from your recent experiences in developing and managing lab spaces?

DS: For retrofits, logistics are critical. You need to think about how goods will arrive and move through the building. At one of our sites, we even designed windows that can be removed, so that very large equipment can be craned in if needed. It’s rare, but planning for that scenario brings flexibility in a rapidly developing typology.

YKO: Talking to occupiers directly is invaluable. We spend a lot of time asking start-ups what they really need, from equipment to staffing to workflow. That feedback has shaped our design approach considerably.   

Q: What are some key benefits of developing co-located spaces for start-ups and smaller organizations, rather than larger companies?

DS: From a landlord-operator perspective, working with early-stage companies helps build a pipeline for future developments. We’ve had tenants who started with a single bench and are already talking to us about moving into much larger buildings. Without incubator space, we’d never have built that relationship.

YKO: Working closely with companies in their earliest stages also builds trust and reduces risk in future projects. Once we understand how a company operates, what their science requires, and where their pain points are, we can design better space for them as they grow so they won’t want to go elsewhere. 

Q: Are there any other technical, logistic, and contractual considerations for developing/managing a space that houses multiple start-up organizations?

DS: Providing fitted space is essential. Start-ups need to walk in and start working on day one. Beyond that, when supporting multiple tenants, you need to ensure the shared infrastructure works for everyone. That means a reasonable level of shared equipment—glasswashers, autoclave, freezers, water purifiers, etc. Add flexible leases, transparent pricing, and access to a strong local network, and you’ve addressed most of their concerns.

YKO: And logistically, don’t underestimate the importance of shared spaces like phone booths, touchdown areas, and meeting rooms. They help dozens of companies coexist productively. 

Q: How can the wider community be considered when developing new sites?

By opening labs to the public with welcoming spaces, art collaborations, and visible research, developers aim to make science more accessible and inspiring. Image: Courtesy of journey

YKO: We’re focused on making our spaces feel open and welcoming. At our new site, we’re building a café that anyone can use, not just tenants. We’re also launching an initiative where local artists collaborate with our start-ups to create pieces inspired by their work to make their science more approachable.

DS: I also believe in putting science on show. Too often, labs are behind blank walls, which makes the public see science as mysterious and even scary. By designing ground-floor labs with glazed walls, passers-by can see research happening. It sparks curiosity, especially among young people, and helps science feel part of everyday life.

Q: What trends are you seeing in lab infrastructure, and what do you expect to see over the coming two to three years?

DS: AI is going to change the way these businesses operate. We may see labs that are smaller but paired with more office and computational space, which could affect how buildings are designed in the near future.

YKO: I’d add two more trends. First, robotics is coming—labs will eventually be designed for machines as much as people. Second, companies are increasingly international. Many of our tenants also operate in the US or Asia. That means they need flexible space for visiting staff, sometimes just for a few months. Location and accessibility become even more critical in that context.

The conversation with journey highlights that designing labs for small businesses is as much about people as it is about buildings. Start-ups need affordable, flexible, and collaborative spaces where they can focus on their science, not facilities management. By rethinking assumptions and listening directly to tenants, developers can create labs that support innovation today while anticipating the needs of tomorrow. 

Scott D. Hanton, editorial director for Lab Manager, can be reached at shanton@labmanager.com.