Relocating Specialty Labs: Build New or Renovate Old?

McGough delivered a state-of-the-art research lab facility at General Mills headquarters in Golden Valley, MN. Image: McGough. All Rights Reserved

In today's rapidly evolving high-tech and life sciences sectors, the demand for specialized laboratory spaces is both increasing and ever-changing. When a company outgrows its existing lab space, a critical decision arises: renovate an existing building or construct a new one.

While both solutions have their merits and challenges, there are several factors companies need to consider when determining what’s right for their business, from cost-benefit analyses, process flow improvements and space requirements to disruptions to ongoing operations and future-proofing. Working with a specialized general contractor with design-build expertise can help companies navigate this complex decision as they work together to ensure a smooth and successful solution.

The dilemma: existing buildings vs. new construction

Whether updating a bioengineering facility with top-level safety features or developing a manufacturing plant for implantable medical devices, the demands of the technology and life sciences sectors go well beyond the ordinary. Specialty labs require unique infrastructure and operational considerations including advanced ventilation systems, high-purity water and gas supplies, specialized electrical requirements, cleanroom environments, specialized equipment, and more.

Relocating a specialty lab is a significant undertaking that requires careful planning and execution to ensure minimal downtime. These facilities—characterized by their complex infrastructure, advanced technology, and stringent safety protocols—demand a unique operational environment. These complexities can also vary depending on the research, the diagnostics, and the quality control testing being performed. Some labs may require specialty gasses, room pressurization cascades, special exhaust systems, and hazardous waste systems with bio-kill or other waste treatment methods.

The more intricate the lab setup is, the more considerations there are when deciding between renovating an existing building versus constructing a new facility. Selecting the best path forward can be difficult because sometimes trade-offs may need to be made, which could impact the lab's functionality, efficiency, and overall success.

Working with McGough, SkyWater Technologies set out to expand its existing facility by ​​adding more than 64,000 SF to their wafer chip manufacturing building. Image: McGough. All Rights Reserved

Existing buildings

Relocating a specialty lab to an existing building can offer several advantages including lower cost and shorter timeframes with quicker occupancy than compared to new construction.

However, existing buildings come with inherent limitations. The existing structure may restrict design flexibility, making it challenging to customize the space to meet specialized needs and limit future expansion options. Outdated infrastructure, including electrical, HVAC and drainage systems, can present significant challenges requiring substantial upgrades. It is also important for owners to consider the costs associated with disconnecting, preparing, and moving vital equipment needed for operations. That alone could account for 20 percent of the cost associated with equipment for the lab space. Finally, companies need to assess the potential disruptions to ongoing operations that construction within an occupied building may cause.

While renovating an existing building can be a viable option with several appealing cost and timeline factors, constructing a new facility offers a clean slate for creating a lab environment tailored to unique needs.

New construction

While a new facility offers unparalleled opportunities for customization, it also typically demands a longer timeline—potentially four to six months or more—and higher upfront costs compared to renovation. Building from the ground up allows for a lab design that ensures that the lab's infrastructure, including ventilation, electrical systems, and plumbing, meets the most stringent standards and supports the latest equipment and research methodologies. Furthermore, new construction provides more flexibility for future expansion, accommodating growth and evolving research and production requirements while minimizing/avoiding a facility’s downtime associated with most renovations.

Ultimately, the decision to renovate or build new hinges on careful consideration of a lab’s requirements and priorities. A thorough needs assessment, feasibility study, and budget analysis are crucial first steps. Partnering with a general contractor with design-build expertise can be invaluable throughout this process. Their experience in navigating the complexities of lab relocation, coupled with a deep understanding of industry standards and regulations, can ensure a successful outcome.

McGough executed a multi-phase, multi-year lab build-out that included three separate lab and office facilities for WuXi AppTec and its growing staff. Image: McGough. All Rights Reserved

The role of an experienced design-build contractor

The design-build approach offers significant advantages for complex projects like specialty lab relocations. By integrating design and construction under a single contract, this method often accelerates project timelines by 25 percent to 30 percent. Additionally, the collaborative nature of design-build allows for more timely cost evaluations and adjustments, ensuring more accurate budgeting and lower ultimate cost.

An experienced design-build contractor brings a unique set of skills to a lab design project. Their deep understanding of engineering and design principles enables them to optimize the facility's functionality and efficiency while living within cost targets. With a streamlined project delivery process, contractors can expedite timelines and minimize delays. Moreover, their expertise in risk management helps to identify and mitigate potential challenges, protecting the project from unforeseen issues.  Specifically, within the technology and life sciences sectors, contractors with a proven track record are essential. Their knowledge of industry standards, regulations, and best practices is crucial for ensuring compliance and project success.

Working with McGough and design firm CRB, Takeda Pharmaceuticals took existing facilities and brought them into the future. Image: McGough. All Rights Reserved

Whether relocating a lab or building a new facility, a proven, seasoned contractor can provide invaluable support. By conducting a thorough needs assessment, they can identify the functions, equipment, and personnel requirements of the lab. A feasibility study helps evaluate existing building conditions and determines the viability of renovation or new construction options. The contractor can also assist in developing a realistic project budget, establishing clear timelines, and calculating the necessary square footage for the lab. They can help clients consider long-term goals, such as future expansion and technological advancements as well as evaluate the project's location in terms of transportation, utilities, and skilled labor availability.

Making the right decision for your operation

Successfully relocating a specialty lab demands a strategic approach that balances cost, time, and the creation of an optimal research environment. The decision to renovate an existing space or build a new one is influenced by factors such as the lab's specific needs, budget constraints, and desired timeline. In an industry where time-to-market can make or break a company's competitive edge, the value of a knowledgeable design-build contractor cannot be overstated. By carefully considering these factors and leveraging the right partnerships, companies can achieve a successful lab relocation that drives innovation and supports long-term growth in the technology and life sciences sectors.