USD Discovery District Pioneers Growth in Biotech Innovation

OmegaQuant Analytics is among the first tenants to move into the USD Discovery District's new 50,000-sf biotech hub in Sioux Falls, SD, leasing 5,300 sf for office, lab, and manufacturing space. All images: Courtesy of USD Discovery District

The USD Discovery District, a biotech and life sciences hub in Sioux Falls, SD, opened its first 50,000 sf building earlier this year, offering a cutting-edge environment designed specifically for biotech and life sciences companies. One of its newest tenants, OmegaQuant Analytics, is a prime example of the district’s potential. The Sioux Falls-based company, founded as a startup in 2015, has grown steadily into a provider of omega-3 testing. OmegaQuant will be among the first to move into the USD Discovery District, leasing 5,300 sf of office, lab, and manufacturing space.

The project team included ISG, Inc. (civil, MEP, interior design, and tenant build-out design), McGough Construction (construction manager at risk), and Brian Limoges, AVP Facilities, University of South Dakota (project support/owner’s representative).

OmegaQuant’s move is a strategic one, as the Discovery District’s infrastructure is specifically designed to foster innovation. The district’s location near the University of South Dakota (USD) provides tenants with access to university resources such as the GEAR Center, which offers cGMP space and cutting-edge scientific research equipment. The proximity to USD Sioux Falls also allows businesses to engage with students and faculty, fostering workforce development in biomedical engineering and health sciences.

A customizable, sustainable facility

The USD Discovery District’s first building was designed for flexibility, sustainability, and scalability, featuring a customizable core and shell infrastructure to support evolving biotech and life sciences needs while maintaining high-performance standards.

The first building in the Discovery District was developed with flexibility and sustainability in mind. The core and shell design allows tenants to customize spaces according to their specific needs, ensuring that biotech and life sciences companies have the infrastructure to support their highly specialized work. The district’s planning team, working alongside ISG, Inc. and McGough Construction, made intentional decisions to accommodate evolving industry demands and keep the project moving forward and on budget.

“The primary design goals of the USD Discovery District’s first building included intentional design and construction of the building infrastructure,” says Ryan Oines, interim president for the USD Discovery District. “By investing in the building infrastructure, core and shell space within the building can be built to suit, allowing for advancing biotech and life science companies to customize their finished space to accommodate their highly specific needs.”

To ensure the building meets high-performance standards, the district consulted with multiple research parks, collected feedback from biotech companies, and incorporated best practices in lab design. This approach has made the space attractive to companies like OmegaQuant, which require specific modifications such as specialized HVAC systems and lab equipment accommodations.

Oines says, “USD Discovery District’s first building was designed with the intent of growth and scalability. Not only was flexibility within the tenant spaces a priority, but ongoing sustainability remained a priority through the design process. By designing the building to accommodate current and future MEP requirements, the building has the ability to change in tenant layout and meet future build-out needs.”

Building a collaborative ecosystem

Phase 1 of the USD Discovery District prioritizes flexibility by offering core and shell spaces for tenant customization, incorporating specialized MEP, HVAC, and data infrastructure, with annual reporting to assess workforce, space usage, and resource needs.

The Discovery District is designed to be more than just a collection of biotech companies—it’s a collaborative ecosystem that brings together startups, established businesses, and research institutions. The district’s shared resources, such as conference rooms, coworking spaces, and university-supported prototyping services, encourage interaction and innovation among tenants.

Beyond OmegaQuant, the building houses the South Dakota Small Business Development Center and the Prairie Family Business Association, both of which offer valuable support to startups and growing businesses. The district has also been actively recruiting additional biotech and life sciences companies, using a data-driven approach to identify the best potential tenants.

“The USD Discovery District is intentionally located near the USD GEAR Center and USD Sioux Falls for two primary reasons,” says Oines. “One: Incubation and early-stage research can be conducted at the USD GEAR Center utilizing its cGMP space and a list of scientific research equipment available through the GEAR Center. Two: USD Sioux Falls will provide opportunities for workforce development through programs such as biomedical engineering and health sciences allowing students, faculty, and staff to interact with private industry located within the USD Discovery District.”

End-users, including initial tenants, were actively involved in providing feedback throughout the design and construction phases to ensure the building met their specific needs. The USD Discovery District collaborated with the University of South Dakota, consultants, ISG, Inc., and McGough Construction to gather insights from end users, designers, and biotech industry experts. Additionally, the district conducted tours of 11 research parks to collect best practices and ideas, a process that remains ongoing as they continue to identify tenant prospects and optimize available space.

In line with fostering innovation and collaboration, much of the leasable space in Phase 1 was intentionally left as core and shell, allowing prospective tenants to customize their areas based on specific operational needs. Tenant build-outs have included specialized MEP infrastructure, tailored HVAC systems for lab spaces, and customized data requirements, ensuring flexibility and adaptability. Annual tenant reporting will measure metrics including workforce, tenant space, and resources—data which will be used to evaluate conditions, identify resource needs, and impact.

“By allowing collaborative design, the USD Discovery District will support innovative companies and their individual needs,” says Oines.

A bright future for the Discovery District

The current facility is the first of 26 planned buildings, which will eventually fill 80 acres of research and innovation space. The district is projected to create nearly 2,800 jobs, contributing to the economic growth of Sioux Falls and positioning the city as a national player in the biotech industry.

Looking ahead, the district is focusing on expanding its reach, attracting a diverse range of companies, and integrating sustainability and urban design principles into future phases. As more businesses like OmegaQuant move in, the district is well on its way to becoming a premier biotech innovation hub.