Three Key Leasing Models in Life Sciences

The life science industry is advancing with each passing year. What life science companies are doing today is much different and more advanced than what they were just a few short years ago. Every company, including those that operate in the life sciences, has to start from somewhere, and with any success, growth will ensue. As a result, when a life science company is in its infancy, the real estate needs of such a business may not be that large and complicated. Instead, these businesses may only have minimal needs and space requisites. 

However, as a company makes invaluable advancements in their discipline, whether it be technology, biomedicine, or pharmaceutical, the real estate needs will change significantly. This means that these companies can benefit from learning more about the three key leasing models in life sciences that support each stage of a life science company’s changing requirements. Life science companies that are looking for a lease, or commercial building owners looking to lease to life science companies, can count on the trusted and knowledgeable guidance of the experienced attorneys at Sunridge Legal. Reach out today to schedule a free consultation at [email protected]

Understanding the Life Science Industry

Any type of organization or business that is devoted to advancing research and breakthroughs with the objective to better and safeguard the life of organisms on our planet can be considered a life science. The work of a life science company can be for the environment, for medical improvements, involve advanced technology, life systems, and more. Funding for these operations can come from private or government agencies. Exploration of methods that expand even to space is another sector included in the classification of life science, as even the National Aeronautics and Space Administration (NASA) makes ventures in the scientific discipline.

Three Leasing Models Explained

The life science industry is vast. How each entity operates and what is necessary to perform the work can vary greatly. Landlords that lease to these companies, in response, understand that there may be a need for different functional and supportive business terms available to support these tenants. Life science organizations are dedicated to the promotion and enhancement of living things and in doing their work they need flexibility when leasing space. Despite the many different types leasing models that can be utilized and customized, typically there are three key leasing models in life sciences. For more information on negotiating a lease, consider visiting with the experienced attorneys at Sunridge Legal. 

Flexible Model/Incubator

The flexible/incubator leasing model is often the most widely used by startup life science companies. Facilities offer early-stage companies a broad spectrum of amenities necessary to assist critical operations, without the need to sign a full-term lease. Instead, these companies can pay for space on a monthly basis as needed. As a license, this leasing model is usually short-term and highly adaptable.


As a life-science company advances and progresses out of the startup phase, the need for a more semi-permanent space that fosters such growth is applicable. Full-term leases that will last up to three years can be signed here. High-cost amenities like lab equipment, for example, are many times included.


Multi-year leasing that incorporates more permanent solutions to operations takes the front stage with long-term leases. A matured life science company that is ready for clinical trials will have to plant itself securely in a space that can handle this task. As such, this is where heavy capital investment into custom-fit facilities comes in. 

Growth of the Life Science Industry

Investments in the life sciences have been growing substantially year after year and are projected to continue with that trend. More money is being put towards research and technology that not only is aimed at offering more positive headway for our world, but also has significant financial returns. There are many risks, but investors appear to be open to such uncertainty. With improvements and acceleration of artificial intelligence and digital technologies, it is expected that the life sciences will be one of the many industries poised to take advantage of them. In fact, the National Artificial Intelligence Initiative aids ongoing AI activities.

Emerging new life science companies at any stage have options that they can utilize to best meet their operational and future goals when it comes to securing real estate. In today’s digital world, there could be a component to use virtual options, but due to the nature of life science work, physical space at some point in a company’s development will likely be necessary. Considering the changes in the world after the pandemic, innovation has been at an all-time high and the life sciences industry has been a key contributor with respect to combatting the health scourge. Additionally, global venture capital funding continues to be robust. Future partnerships and funding into life science companies may mean that facilities ready to house such operations will be in demand. Companies interested in finding the right space and negotiating the most favorable terms based on where they are at in their life cycle could benefit by utilizing the assistance of a real estate attorney.

Speak with an Experienced Commercial Real Estate Attorney Today

When purchasing property or renting highly scientific and specialized space is the goal, working with an attorney that understands real estate law and contracts is crucial. One of the three key leasing models in life sciences may be appropriate for a life science business depending on where the company is operational. While a realtor or broker may be able to help locate properties of interest, they lack legal training to make sure contracts are executed in the life science company’s legal and financial interests. 

If you are ready to find commercial space to house your life science company’s critical endeavors, or you are interested in leasing your real estate to a company in the life sciences field, contact the experienced attorneys at Sunridge Legal to learn more. To schedule a free consultation with one of our knowledgeable attorneys to discuss your needs, please email us at [email protected]

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