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Ontario’s Wet Lab Crunch: What Startups Need to Know and Do Right Now

SPEC Labs 18-Jun-2025 8:00:00 AM
Biotech Innovator Experiments in a Graduation-stage Coworking Wet Lab

Navigating Ontario’s Wet Lab Crunch: How Life Sciences Startups Can Secure the Space They Need 

For emerging life sciences companies, access to the right lab space can be the difference between breakthrough and bottleneck.

As scientific research accelerates across the Greater Toronto Area (GTA) and Ontario, the demand for wet lab space has reached unprecedented levels. Ontario is the heartbeat of Canada’s life sciences sector, housing global pharmaceutical, biotech, and medtech companies. Southern Ontario alone contributes 37% of Canada’s GDP and 46% of its total Business Expenditure on Research and Development, making it a critical driver of national innovation.

But with this momentum comes growing pains—chief among them, the shortage of specialized lab infrastructure. For early-stage and graduation-stage life sciences companies, finding scalable, accessible, and affordable wet lab space in Ontario is a pressing challenge.

A Densely Concentrated Life Sciences Ecosystem

The GTA is one of the most concentrated life sciences ecosystems in North America. It is home to:

  • 1,400+ life sciences establishments, including nearly 50 international pharmaceutical and biotechnology companies that have established head offices here, including global giants AmgenAstraZenecaGSKRoche, Apotex and Teva

  • 11,000+ researchers and technicians operate out of 37 research institutes, such as University Health Network, SickKids, and Sunnybrook Health Sciences Centre
  • 15+ incubators and accelerators, including MaRS Discovery District, JLABS Toronto, and University of Toronto Mississauga SpinUp

According to Invest Ontario, 6 of the world’s top 300 universities and 38% of Canada’s high-growth firms are located here.  This density of talent, research excellence, and commercial activity makes the GTA a launchpad for Life Sciences innovation. However, it also fuels a space crunch — particularly for companies transitioning from incubators into full-fledged R&D operations.

Why Graduation-Stage Life Science Innovators Are Feeling the Pinch

Graduation-stage life science companies—those ready to commercialize, scale up, or attract institutional investment—often struggle to find appropriately sized and equipped lab facilities.

Incubators offer critical early support, but their space, infrastructure, and flexibility are limited. Commercial labs, meanwhile, often require long-term leases, tenant fit-outs, and significant capital. This gap leaves startups without viable next-step options just when they need it most.

The consequence? Slowed R&D timelines, stalled hiring, delayed regulatory submissions, and missed market opportunities.

Filling the Gap with Shared Wet Lab Infrastructure

That’s where SPEC Labs comes in. Built for the needs of scaling life sciences ventures, SPEC Labs offers coworking wet lab facilities in the heart of Ontario’s life sciences cluster.

We provide flexible, fully equipped lab space for companies ready to graduate from incubators but not yet ready for their own standalone facility. Our model is inspired by successful platforms like LabCentral (Boston) and Bonneville Labs (California), tailored to Canada’s unique market and policy landscape.

Why Life Sciences Startups Choose SPEC Labs

1. Flexible Occupancy with Room to Grow

We offer short- and medium-term residency options—ideal for companies navigating funding cycles, product development milestones, and regulatory pathways. Our flexible structure means you can scale up or down based on your evolving needs.

2. Plug-and-Play Wet Lab Access

Skip the capital outlay. Our shared facilities include everything from biosafety cabinets and chemical fume hoods to specialized instrumentation. Startups can begin work on day one—without delays or construction headaches.

3. Prime GTA Location

Our facilities are centrally located in Mississauga, close to leading universities, research hospitals, and key government and investor stakeholders. It’s a location purpose-built for life sciences success.

4. Supportive, Collaborative Community

SPEC Labs brings together like-minded innovators, fostering a sense of shared purpose. Residents gain access to networking events, peer mentorship, investor introductions, and resource-sharing that amplifies success.

5. Transition and Scale Support

We work with companies to ease the journey from incubator to full operations. That includes support with regulatory compliance, grant applications, vendor relationships, and operational growth planning.

5 Reasons Why Shared Wet Labs Are Essential to Ontario’s Innovation Pipeline

As the life sciences sector in Ontario continues to grow, the need for adaptable, mid-scale lab infrastructure has become increasingly clear. Shared wet labs fill a crucial gap in the ecosystem by offering:

  1. Faster go-to-market timelines

  2. Lower operating risk for startups

  3. Increased R&D productivity
  4. Accelerated commercialization of IP
  5. Stronger local life science retention

This model has already transformed life sciences ecosystems in Boston, San Francisco, and Cambridge, UK. Now, SPEC Labs is doing the same in Canada.

Looking Ahead: Solving the Lab Space Bottleneck

The GTA’s life sciences sector is growing — fast. But to sustain this momentum, Ontario must invest not just in research and talent, but in the physical infrastructure that enables it to thrive.

SPEC Labs is proud to be part of the solution. Our co-working lab facilities empower Canada’s life sciences startups to build, experiment, and commercialize without compromising speed, quality, or capital efficiency.

We envision a future where every promising life sciences idea has a place to grow — without infrastructure being a barrier. Whether you’re developing a therapeutic platform, scaling a diagnostics pipeline, or engineering next-gen biomaterials, we have the tools, space, and support to help you succeed.

Join Canada’s Next-Gen Life Sciences Ecosystem

 

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