The hidden demands of Science and Innovation real estate

Science and Innovation campuses captivate with sleek façades, world-class researchers and the promise of breakthrough discovery. Yet behind the glass lies a more complex reality: these facilities are infrastructure-heavy, operationally intricate and relentlessly expensive to build and run.

For landlords moving from traditional offices or logistics assets, the shift into Science and Innovation developments can be a costly wake-up call.

The power paradox

Laboratories consume substantially more power than standard offices as they demand constant airflow, stable temperature and humidity, sterilisation systems and equipment that may need to run 24/7. Energy use is continuous and largely non-negotiable for tenants.

That means new substations, complex utility coordination and months of lead time before a single bench is operational. These requirements can significantly alter feasibility and capital cost.

Newmark have acted for an occupier seeking to scale their manufacturing capabilities within London and when searching for this new facility, power capacity was the single biggest driver behind the search.

Waste isn’t just rubbish

Every experiment produces waste - biological, chemical or plastic - and each stream must be managed under strict regulatory regimes. Facilities need autoclaves or incinerators, segregated waste routes and secure hazardous storage, all of which consume valuable space and energy.

At scale, some developers are integrating waste systems as shared utilities: In South San Francisco, large Life Sciences campuses incorporate waste-neutralisation systems as part of campus utilities, and Kilroy Oyster Point Life Sciences Campus provide for centralised infrastructure at campus scale.

These systems consume valuable real estate, inflate air-handling requirements and demand coordination with specialised logistics providers. Standard buildings simply are not built for this.

The ESG tension

The irony of Life Sciences real estate is stark: companies solving global health and climate problems operate in some of the most resource-intensive facilities on earth. Cooling, sterilisation and water use all drive extraordinary consumption.

Change is coming, albeit incrementally. At Stevenage Bioscience Catalyst, the Incubator achieved a BREEAM ‘Excellent’ rating and introduced rainwater harvesting to reduce potable-water demand. In the U.S., Alexandria Real Estate Equities has committed to 100% renewable electricity and broad decarbonisation across its clusters.

But sustainability isn’t just a badge - it’s becoming a cost differentiator. Efficient systems reduce operational expenses and attract ESG-conscious investors and occupiers.

Designing for demand

To win and retain tenants, landlords must combine flexibility with foresight. Pre-permitted shells and modular lab fit outs shorten occupation timelines which is a major draw for fast-moving biotech start-ups.

Investing in shared infrastructure such as centralised waste management or on-site renewable energy lowers tenant operating expenses while enhancing ESG credentials. And specialist facilities management partners can safeguard compliance and uptime — now core metrics of value.

Above all, location remains the ultimate filter. Sites with proximity to universities, research hospitals and talent pools consistently outperforms isolated clusters in leasing velocity and long-term tenant retention.

The bottom line

Behind every scientific breakthrough lies a vast and often invisible infrastructure of power grids, chillers, waste systems and logistics networks. The real estate that supports discovery is anything but generic.

Developers and investors have a rare opportunity to enable progress by engineering spaces that meet the relentless demands of modern science. Don’t just build buildings - create places that empower innovation.

It’s time to invest in adaptable, sustainable, and compliant infrastructure that meets the growing occupational demand for science and innovation real estate. While development remains challenging, locations offering the complete package will continue to perform strongly - positioning portfolios at the forefront of global scientific advancement.

As the sector matures, understanding where innovation truly concentrates will become even more critical. Our forthcoming Newmark Life Sciences Hotspots research explores the next wave of global clustering  - analysing how university performance, funding ecosystems and talent density are shaping the emerging map of discovery. The full report, coming soon, will provide fresh insights into where real-estate investment can best align with future scientific growth.