REPURPOSING

OFFICES TO LABS
DEMAND FOR
LABORATORY SPACE
Life sciences is poised to see significant
investment this year. From the UK
perspective, this presents opportunities
to meet the need for more laboratories,
attract investment and enhance research
and development.

LOCATION AND DEMAND

New laboratories generate a unique
economic ecosystem of collaboration and
investment that can create new areas of
economic development throughout the UK
and Ireland.

REPURPOSING OFFICE
SPACE TO LABS
There are several key considerations
when refitting office space to a laboratory
environment — structural, wellbeing
features, lifts, services and legal
considerations.

An edited version of this article first

appeared in Building magazine
in January 2021
COST MODEL REPURPOSING OFFICES TO LABS

BOTH PRIVATE AND PUBLIC SECTOR ESTATES CAN BENEFIT

FROM THE OPPORTUNITY TO PROVIDE MUCH-NEEDED
HIGH-QUALITY SPACE FOR LIFE SCIENCES. THE DEMAND
FOR RESEARCH FACILITIES IS SOARING ACROSS THE UK,

REPURPOSING
PARTICULARLY IN AREAS WHERE CLUSTERS OR INNOVATION
DISTRICTS ARE ESTABLISHED OR EMERGING, SUCH AS IN
KING’S CROSS, WEST LONDON, CAMBRIDGE AND AROUND
OTHER RUSSELL GROUP UNIVERSITIES.

OFFICES TO LABS
—

THE GROWING DEMAND In the most recent budget it Institutions are looking to improve

FOR LABORATORY SPACE committed to doubling funding

The need for laboratory space is soaring,
driven by the booming life sciences
sector. For developers and landlords hit by
declining demand for offices, this provides
an opportunity. AECOM’s Alison Wring
assesses the cost considerations of
repurposing offices for laboratory use and
provides a typical cost breakdown.
Life sciences is the third most likely
sector to see investment grow this year,
according to the European Emerging
Trends in Real Estate 2021 from the
Urban Land Institute and PwC. From a
UK perspective, several factors have
brought this sector into the spotlight:
/ There is a severe lack of supply,
particularly in London, Cambridge
and Oxford. This has been
accentuated over the past year
because of covid-19, which has
meant scientific and medical
businesses needing even more
space, and that income in the sector
is largely protected compared with,
say, retail.
/ UK plc needs to boost return
on investment by attracting
and retaining world-class talent
across government, academia,
universities, research institutes
and technology organisations.
/ The increased pace of digitalisation
is driving up floorspace needs
for scientific use. This greater
focus on AI and digitalisation to
analyse and predict outcomes from
research, rather than the more
traditional biological and chemical
experimentation, also influences
data infrastructure requirements.
The government has produced a
10-point UK research and development
roadmap showing its increased
commitment to R&D and the steps
it will be taking to boost the UK’s
innovation potential in every region.
for life sciences to 2.4 per cent of
GDP until 2027, as well as specific
investment in animal health research
and a new R&D facility specialising in
critical security/defence.
The spotlight is on life sciences as
never before, as organisations from
global pharmaceutical companies to the
Department of Health, Public Health
England, academia and science parks
collaborate to develop vaccines and
treatments for covid-19.
Biotech, medtech, pharma and
digital health are at the core of demand,
supporting interested parties from
suppliers, investors, consulting and
services and public sector/not-for-profit
organisations, with space being required
for teaching, research and development,
diagnostics and manufacturing.
A May 2020 report for Forbes by
Kath Mackay, managing director of
Bruntwood SciTech Alderley Park,
highlighted the importance of the UK
life sciences sector to our economic
prosperity. In the first lockdown, for
instance, we saw the SciTech/L&G
Future Cities joint venture complete a
major investment in Liverpool Science
Park, while many developers worried
about the future of the offices sector.
The commercial office market is
being tested to its limits in the wake of
the pandemic, which has created major
issues for developers and landlords, in
obtaining rents from tenants and in the
uncertainty of future space needs.
Meanwhile already stretched
universities and healthcare trusts
have faced major challenges on capital
improvements and backlog maintenance
associated with their estates.
56% or relocate key parts of their estates
while disposing of more obsolete sites,
From a sustainability
often considering commercial partners
perspective,
refurbishment can to support with financing while
deliver a 56 per retaining ownership of land.
cent reduction in
carbon emissions
Both private and public sector estates
compared with a
new-build facility.
can benefit from the opportunity to
provide much-needed high-quality
space for life sciences. The demand for
research facilities is soaring across the
UK, particularly in areas where clusters
or innovation districts are established or
emerging, such as in King’s Cross, west
London, Cambridge and around other
Russell Group universities.
Where major healthcare trusts also
exist locally, there is an opportunity
to combine academics with clinical
staff and R&D partners to create a life
sciences ecosystem. This can make
property in the area highly desirable.
Potential rents for lab space range
from £70 to upwards of £100 per ft2,
compared with £57.50-£70 for offices.
From a sustainability perspective,
refurbishment can deliver a 56 per
cent reduction in carbon emissions
compared with a new-build facility —
giving strong eco-credentials that may
be attractive to prospective tenants.
There are also gains in terms of speed
to market.
Here East, formerly the Media Centre
for the 2012 Olympics, is a good example
of an innovation and technology campus
for start-up companies. Granta Park,
a science park in Cambridge, has also
undertaken studies into repurposing its
existing space.
London is at the heart of life sciences,
with the Knowledge Quarter at
King’s Cross/Euston and across
to Bloomsbury, Imperial College’s

2 3
COST MODEL REPURPOSING OFFICES TO LABS
TRENDS IN LOCATION
AND DEMAND
Innovation District at White City,
and emerging areas around other
science or tech companies such as on
the South Bank, the Silicon Roundabout
and across to Hoxton/Whitechapel and
even Stratford as an emerging district,
blending traditional science with tech
and digital science.
Other areas under the spotlight
are those with major infrastructure
improvements, such as along the
Crossrail line, the Oxford to Cambridge
train link and major hubs off HS2,
as can be seen with Bruntwood
SciTech’s investment in Birmingham,
Alderley Park, Liverpool and
Manchester, as well as Edinburgh with
its Bioquarter campus plans.
Across the water to Ireland,
Trinity College Dublin has just
announced Savills as property advisers
on its Silicon Docks technology
campus. The whole of the UK and
Ireland can benefit by creating
economic growth in localised areas
from the life sciences sector, not just
the Golden Triangle of London/
Cambridge/Oxford.
4 5
Demand is for a range of
accommodation — from small start-up
space to larger combined lab and office
space for more mature companies that
may want to be close to potentially
successful start-ups in order to invest
in them. Major pharmaceuticals are
looking to relocate to areas of growth.
According to lab fit-out specialist
Galileo Labs, “The nature of life
science research is shifting to a
collaborative model where co-location
and open and accessible facilities for
smaller science companies is required.
Combining the academics with
clinical staff as well as research and
development partners creates a unique
ecosystem, making property in the
area extremely sought after.”
Life science companies are moving
more towards enhanced office
environments with smaller areas of
wet/dry lab content, as traditional
analysis methods are being replaced
by smart, advanced technology.
This is good news for those looking to
repurpose existing facilities, because
less of the floorspace requires the
structural and services modifications to
accommodate wet/dry lab areas.
THE NATURE OF LIFE SCIENCE
RESEARCH IS SHIFTING TO A
COLLABORATIVE MODEL WHERE
CO-LOCATION AND OPEN AND
ACCESSIBLE FACILITIES FOR
SMALLER SCIENCE COMPANIES
IS REQUIRED. COMBINING THE
ACADEMICS WITH CLINICAL STAFF
AS WELL AS RESEARCH AND
DEVELOPMENT PARTNERS CREATES
A UNIQUE ECOSYSTEM, MAKING
PROPERTY IN THE AREA EXTREMELY
SOUGHT AFTER.
— distancing guidelines.
KEY CONSIDERATIONS
IN REPURPOSING OFFICE
SPACE FOR LABS
There are several key considerations
when refitting office space to provide a
laboratory environment.
Structural considerations
The foremost is slab heights and risers.
An initial viability assessment is needed
to quickly determine the slab-to-slab
height of a building to establish whether
there is enough height to bring in
additional services, such as risers.
Typically, a lab storey height would
be 4.1m to 4.5m high (top of slab
to soffit), allowing for the vertical
distribution of air across the floorplate,
whereas an office storey tends to be
3.6m to 4.2m. Older properties such
as telephone exchanges, banking halls
and other financial institutions lend
themselves well to lab conversion,
due to their dense frame and generous
storey heights. Equally, warehouses,
industrial premises and even shopping
malls could be considered.
A solution for buildings with lower
storey heights is to create greater
density of internal risers and plant room
space. Existing basement provision can
also be used to house plant.
Other structural alterations or
strengthening works may be required, as
well as potentially facade replacement.
Wellbeing features
Facilities with roof terraces and other
recreational zones will be highly
sought after, especially in urban
areas. Scientists work in controlled
environments so breakout areas such
as wellness areas or contemplation
rooms as well as outside spaces will
be in demand. These spaces can also
be safely adapted to serve a variety
of functions in line with government
Lifts Legal considerations
100% The increased cellularisation required Planning issues may arise regarding
The capital cost of
construction works
to convert an open-plan Category A
office into multiple start up/incubator
any additional rooftop plant, as well
as if increasing the height of the
to create dedicated type labs means additional lift cores building itself. There may also be
research facilities may be required, depending on the heritage issues to consider, as well as
for owner-occupiers
benefits from 100
size of the floorplate and the targeted potentially the removal of asbestos in
per cent capital number of tenants. Buildings with older properties.
allowances. multiple existing lift cores may be
able to provide access to multiple
tenancies without such modifications.
Having multiple lifts allows each tenant
FINANCIAL
to have a separate access and a place to INCENTIVES
apply their entrance branding, giving
them a clear presence. There are specific tax benefits
Services
associated with research and
development. The capital cost
230% There must be suitable plant and riser of construction works to create
These provide
space for lab gases, specialist fume
extract and steam generation. The need
dedicated research facilities for
owner-occupiers benefits from
an enhanced (or
super) deduction for these services differs depending on 100 per cent capital allowances.
of 230 per cent for
eligible staff costs
the type of research being carried out
and therefore will be unknown until a Any innovative design or
for SMEs, or a 13
per cent above-the- tenancy agreement is struck. construction solutions to
line credit for large
companies.
It is common for such systems overcome site-specific scientific
or technological uncertainties
to be either instructed during
construction once a tenant has been may qualify for R&D tax credits.
found, or installed after completion These provide an enhanced (or
of the main fit-out.
Hazardous waste disposal may be
super) deduction of 230 per cent
for eligible staff costs for SMEs,
needed but will be addressed by the
tenant if hazardous chemicals are to
or a 13 per cent above-the-line
credit for large companies.
be used.
COST MODEL REPURPOSING OFFICES TO LABS

Space for tenant plant Fume extract system

FIT-OUT OPTIONS
(designed to an
All main plant agreed capacity)
provided to supply
entire building to
Space for Space for
an agreed capacity
additional additional
Ceiling void fitted out tenant plant/ tenant plant/
(could include ceiling, expansion if expansion if
grilles and lights) required required
LEVEL 1: SHELL AND INCOMING
UTILITIES SUPPLIED ONLY LEVEL 3B: ALL PLANT, SERVICES
RISERS AND CEILING VOIDS PROVIDED
/ Building in basic form, with FOR THE BUILDING
incoming utilities only
/ As with 3a but fit-out services in
/ Core utilities to be capable of the void
supporting expansion
/ Lights, grilles and ceilings could
Incoming utilities provided be provided
to agreed capacity Services capped off by riser and
capped off above ceiling for easy
connection by tenant, using plug-
Services tenant/
and-play connections
landlord risers

Incoming
utilities
Space for Landlord plant
tenant plant for
tenant fit-out
Fume extract system
(designed to an
All main plant agreed capacity)
provided to supply

LEVEL 2: SHELL PROVIDED AND CORE Space for

entire building to
an agreed capacity
(LANDLORD) AREAS FULLY FITTED OUT Ceiling void fitted out
tenant plant Space for
not required tenant plant
/ Building landlord areas only (could include ceiling, not required
fitted out, with incoming utilities grilles and lights)

provided to cater for expansion

LEVEL 4: BUILDING FULLY FITTED OUT
/ Tenant to fit out with plant and
AND READY FOR OCCUPATION
services to tenant demise / Fully fitted-out building ready for
Fit out landlord occupation and use
area only as part
of base build
/ Space for tenant plant not required
Incoming
utilities

Services tenant/
Fume extract system
landlord risers
LEVEL 3A: ALL PLANT AND SERVICES (designed to an agreed
capacity)
RISERS PROVIDED FOR THE BUILDING All main plant provided Incoming
to supply entire building utilities
/ Main plant provided to service Space for
to an agreed capacity
Space for
additional additional
entire building to agreed capacity tenant plant/ tenant plant/ Space fully fitted out and
expansion if expansion if ready for use by tenant

/ No requirement for additional required required

tenant plant unless for specific

requirement (such as for additional
cooling or air)

/ Space for additional tenant plant

provided if required

/ All services in risers provided and

capped off ready for connection
into ceiling void Services
capped off
by riser
/ Space (including ceiling void) to be Services tenant/
fitted out by tenant landlord risers

Incoming
utilities

6 7
COST MODEL REPURPOSING OFFICES TO LABS

ABOUT THE COST MODEL

This cost model captures the full strengthening and minor additional
refurbishment of a 10-storey 1990s office vibration/loading requirements to
block in Greater London repurposed to accommodate the wet lab area, as well
suit a laboratory environment, with a as the provision of an additional lift
gross internal area of 22,500m2 and net shaft and two lift carts.
internal area of 15,648m2, split 50:50 Costs are based on a Greater London DESCRIPTION ELEMENT COST (£) COST/M2 GIFA (£) % TOTAL COST
wet/dry lab space. It assumes that the location, at 1Q 2021. Loose furniture and External walls 820,000 36.38 1
mechanical and electrical services have fittings, professional fees and VAT are
Allowance for cleaning existing glazed façade and replacing gaskets and the like,
reached the end of their useful life and excluded from the model. The building 387,000 17.17 1
generally in good condition
require complete replacement. is designed to meet British Council for
The model assumes abnormal Offices 2019 equivalent and BREEAM Replacement shopfronts- capless curtain walling 387,000 17.17 1
costs associated with foundation Excellent standards. Allowance for making good retained plant screens to roof top plant; repainted and
46,000 2.04 0
making good corrosion

DESCRIPTION ELEMENT COST (£) COST/M2 GIFA (£) % TOTAL COST

Windows and external doors 508,000 22.54 1
Demolition and strip out works 3,087,000 136.96 4
Revolving entrance door and pass door arrangements 160,000 7.10 0
MEP isolations and the like to facilitate internal soft strip 150,000 6.65 0
Assumed separate sliding entrance doors to retail units 140,000 6.21 0
Soft strip of internal MEP and building elements 1,803,000 79.99 3
External doors to back of house areas 100,000 4.44 0
Strip off existing roof finishes and roof terrace slabs etc. 89,000 3.95 0
Allowance for loading bay roller shutters 100,000 4.44 0
Removal of large plant, lifts & BMU 451,000 20.01 1
Allowance for replacement manually operating doors to roof terrace plant level 6,000 0.27 0
Removal of existing external walls and doors to entrances & shop fronts 30,000 1.33 0
Allowance for replacement manually operating doors at plant level 2,000 0.09 0
General demolitions incl. formation of structural openings for new internal risers and
564,000 25.02 1
lift shafts
Internal walls & partitions 1,629,000 72.27 2
Substructure 450,000 19.96 1 Allowance for repairs to existing blockwork walls to BOH areas on GF 48,000 2.13 0
Foundations to new liftcores to south of building 300,000 13.31 0 Reconfiguration of landlord shell and core space; metal stud partitions, two layers
789,000 35.00 1
acoustic plasterboard and skim
Allowance for minor foundation strengthening to suit new purpose 150,000 6.65 0
Formation of new risers; lightweight blockwork, fire rated; including new grating etc 792,000 35.14 1

Superstructure
Internal doors 609,000 27.02 1
Frame & upper floors 1,136,000 50.40 2
Internal doors to landlord shell and core space; timber frames, architraves and
Formation of new liftcore walls GF to Roof 442,000 19.61 1 300,000 13.31 0
ironmongery
Allowance for permanent structural modifications to newly formed openings 150,000 6.65 0 Riser doors 240,000 10.65 0
Allowance for new rooftop mounted flues and modifications to existing rootop steel Internal doors to back of house areas on GF 69,000 3.06 0
250,000 11.09 0
frame plant room
Making good of existing firespray to existing steel frame following soft stripout works 68,000 3.02 0
Wall finishes 310,000 13.75 0
Allowance for isolated repairs and making good following breakout for new internal
113,000 5.01 0 Wall finishes to landlord shell and core space; circulation, WC and reception spaces 310,000 13.75 0
risers
Allowance for patch repair of underside of slabs acoustic treatment 113,000 5.01 0
Floor finishes 1,034,000 45.87 1

Roof 1,035,000 45.92 1 Floor finishes to landlord shell and core space; circulation, WC and reception spaces 1,034,000 45.87 1

Allowance for part repair, part new (50;500 non-combustable roof systsem following
roof plantroom works; including tapered insulation, waterproofing and top finish coat 222,000 9.85 0 Ceiling finishes 448,000 19.88 1
to entire roof Ceiling finishes to landlord shell and core space; circulation, WC and reception
448,000 19.88 1
EO above for blue roof to terraced areas 75,000 3.33 0 spaces
Allowance for modifications to existing BMU railing, and new BMU cart,
125,000 5.55 0
recommissioning etc Fittings, furnishing & equipment 1,528,000 67.79 2
New roof terrace hardstandings, external furniture and planting and the like 475,000 21.07 1 Reception Desk 100,000 4.44 0
Allowance for PV panels to plant room 138,000 6.12 0 Speed Gates/ Entrance Security 200,000 8.87 0
WC fit out; mirrors, vanity units, cubicles and IPS duct panels 880,000 39.04 1
Stairs 220,000 9.76 0 Entrance lobby fit-out including; timber acoustic panelling, raised access floors,
300,000 13.31 0
Refurbishment of existing stairs incuding new handrails, finishings etc. 2nr main granite tiles and feature hardwood slatted ceiling sytem
220,000 9.76 0
cores, no modifications to staircore locations or formation of new feature stairs Allowance for wayfinding signage throughout landlord shell and core 48,000 2.13 0

8 9
COST MODEL REPURPOSING OFFICES TO LABS

DESCRIPTION ELEMENT COST (£) COST/M2 GIFA (£) % TOTAL COST DESCRIPTION ELEMENT COST (£) COST/M2 GIFA (£) % TOTAL COST
Services Fit-out works 20,077,000 890.73 28
MEP services installations 16,748,000 743.03 24 Cat A equivalent building fit-out works 7,667,000 340.15 11
Sanitary appliances to shell and core areas. 270,000 11.98 0 Full height internal partitioning system to suit generally open plan areas. 1,174,000 52.09 2
Foul water drainage, lab drainage and rainwater disposal to S&C and risers. 338,000 15.00 0 Encapsulated doorsets to labs, timber doorsets to offices, generally open plan areas 469,000 20.81 1
Domestic HW and CW services to shell and core and risers- separate stacks 676,000 29.99 1 Wipe clean sterisheen wall finishes to labs, standard dulux to offices. 626,000 27.77 1
Lab point of use HW and Cat 5 water service, capped at each demise. 451,000 20.01 1 Wipe clean gasketed suspended ceilings to labs, standard MF suspended ceiling or
1,174,000 52.09 2
Gas fired boilers and CHP units to serve S&C and tenant spaces. 1,465,000 65.00 2 the like with elements of acoustic treatment to offices.

LTHW water services to serve S&C spaces, apped at risers. 902,000 40.02 1 150mm raised floors generally 626,000 27.77 1

Mechanical AHU's and supply/ extract ductwork to S&C spaces, capped at risers. 2,254,000 100.00 3 Hardwearing chemical resistant vinyl to labs, carpet tiles to offices. 1,095,000 48.58 2

Primary chilled water plant and disctribution capped at risers for onward CAT A Simple lab benching and under and over bench storage. 2,347,000 104.13 3
2,141,000 94.99 3
installs. Serving FCUs in S&C spaces. Statutory and way finding signage. 156,000 6.92 0
Main LV switchboards and rising busbars within risers, terminated in submains panels
1,691,000 75.02 2
for onward CAT A installs. Small power and lighting to S&C spaces only. Cat A equivalent MEP fit-out 12,410,000 550.58 17
Natural gas connections to heat source plant 158,000 7.01 0 Lab appliances including sinks, WHB and eyewash stations 469,000 20.81 1
Fire sprinkler systems serving S&C including gas supression systems to IT hub Foul/ lab water drainage connecting into LL riser. 235,000 10.43 0
789,000 35.00 1
rooms, services capped in risers for onward CAT A fit-out.
Lab point of use HW & Cat 5 water service connection from LL risers. 626,000 27.77 1
BMS Head end unit and controllers to all landlord plant, with energy metering
1,691,000 75.02 2 Domestic HW & CW service connection from LL risers. 156,000 6.92 0
capability for onward CAT A fit-out integration
Heat source plant by landlord. - - 0
Fire alarm head end unit and detectors to S&C space, connection points made
338,000 15.00 0 LTHW water services to tenant spaces 861,000 38.20 1
available for onward CAT A fit-out
Dedicated CCTV and access control systems to landlord demises 225,000 9.98 0 Mechanical supply/ extract ductwork to tenant spaces from risers 1,878,000 83.32 3
Data installations and facilities for the disabled 338,000 15.00 0 Chilled water distribution services to tenant space. 861,000 38.20 1
Dedicated lab gases, fume extract and steam generation excluded, local bottled Small power and lighting installations to labs and offices. 2,269,000 100.67 3
Excluded 0
strategy TBA on a tenant by tenant basis. Fire sprinkler pipework and sprinkler heads connection from LL risers. 782,000 34.69 1
Testing and comissioning 412,000 18.28 1 BMS controllers to all tenant equipment ie. FCU's, VAV, CAV units, fire alarm interface
1,174,000 52.09 2
MEP contractor preliminaries 2,121,000 94.10 3 etc. connection into LL BMS head end.
Builders work in connection with services 488,000 21.65 1 Fire alarm sub-panels and detectors to labs and offices. 313,000 13.89 0
Dedicated CCTV and access control systems to tenant demises 235,000 10.43 0
Vertical transportation 1,733,000 76.89 2 Data installations and facilities for the disabled 313,000 13.89 0
New Passenger Lifts; GF to 10th 1,470,000 65.22 2 Dedicated lab gases, fume extract and steam generation excluded, local bottled
Excluded 0
strategy TBA on a tenant by tenant basis.
New Goods Lifts; GF to Roof 263,000 11.67 0
Testing and comissioning 305,000 13.53 0
MEP contractor preliminaries 1,572,000 69.74 2
Sub-total | Net trade cost 31,295,000 1,388.42 44
Builders work in connection with services 361,000 16.02 1

Sub-total | Net trade and CAT A equivalent cost 51,372,000 2,279.15 72

10 11
COST MODEL REPURPOSING OFFICES TO LABS

DESCRIPTION ELEMENT COST (£) COST/M2 GIFA (£) % TOTAL COST

External Works 250,000 11.09 0
Allowance for new external gas bottle storage and service yard 250,000 11.09 0

Main Contractors Preliminaries (17.5%) 9,008,000 399.65 13

Main contractors's D&B allowance (2.5%) 1,512,000 67.08 2

Main Contractor's OH&P (4%) 2,419,000 107.32 3

Total construction costs 64,561,000 2,864.29 91

Risk allowances and Design reserve (10%) 6,456,100 286.43 9

TOTAL CURRENT COST

Total (£) £/m2 %

£71,017,100 £3,150.71 100

ACKNOWLEDGEMENT
The authors would like to acknowledge the contribution of
Lewis Peacock, Josh John, Alan Fox to the development of
this article.

12 13
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