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What Innovators Should Ask Before Signing a Wet Lab Lease (That No One Tells You)

SPEC Labs 10-Jul-2025 8:15:00 AM

For emerging biotech companies, moving into a wet lab facility is a major milestone—and a major investment. It signals a shift from discovery toward commercialization, often requiring hundreds of thousands in upfront capital and a long-term commitment. But many founders and CSOs rush the decision, focusing only on square footage and rent without digging into the fine print or the hidden risks of conventional leasing.

The result? Companies find themselves locked into inflexible lease agreements, unable to scale, and burdened with legal obligations more suited for large corporations than early-stage ventures.

At SPEC Labs, we’ve seen the full range of tenant experiences — from those who outgrow their space too quickly, to those who never fully utilize what they’ve signed up for. If you’re a biotech startup preparing to access wet lab space, here are the essential (but rarely discussed) questions you should be asking—especially if you're being asked to sign a traditional commercial lease.

 

1. Do you really need to sign a long-term lease?

Most life sciences startups don’t realize there’s a better alternative to a commercial lease. Traditional wet lab leases are often part of a 10-year master lease signed by a developer or landlord. For sub-tenants, that often means:

  • Being subject to onerous tenant covenants

  • Personal guarantees or corporate indemnities

  • Limited ability to scale or exit

  • Responsibility for portions of common infrastructure

But there’s another way.

At SPEC Labs and other next-generation lab operators, startups are granted access through a Licensing Agreement, not a commercial lease. That means:

  • No long-term lease obligations

  • No tenant covenants or personal guarantees

  • The flexibility to scale up or down

  • Freedom to exit without penalties

Ask:

  • Am I being offered a true license to operate or a traditional lease?

  • What’s my minimum commitment, and what are my exit options?

  • Who holds the head lease—and what am I agreeing to?

  • For capital-efficient growth, the right structure matters just as much as the right space.

2. Is the space purpose-built for science—or just retrofitted office space?

Not all “wet labs” are created equal. Some spaces marketed as wet labs are simply renovated offices with a couple of benches and a fume hood—hardly suitable for real scientific workflows.

Ask:

  • Was this facility designed specifically for life sciences?

  • Is there proper ventilation, backup power, and humidity control?

  • How is waste (chemical, biological, radioactive) managed?

  • Are there validated systems for water purity, gas, and drainage?

Real wet labs require specialized infrastructure. If the space feels improvised, it likely is—and that can affect your science.

 

3. What shared infrastructure and services are included—and what’s extra?

Shared services can reduce your burn rate. But not all shared labs include the same amenities or provide full transparency on usage fees.

Ask:

  • Are shared freezers, biosafety cabinets, centrifuges, and autoclaves included?

  • Is there support for equipment calibration, waste removal, or glass wash?

  • Who maintains shared equipment — and how quickly?

  • What will I pay for storage, IT, or access to secure facilities?

Look for operators that offer all-in pricing or transparent cost schedules to avoid surprises.

 

4. What’s the real cost of occupancy?

The listed price is just the start. Add-ons like CAM (common area maintenance), utilities, lab services, and security can drive up your total cost.

Ask:

  • What’s the fully loaded monthly cost—including utilities, waste, and services?

  • What’s billed directly to me versus embedded in access fees?

  • Is there a cost difference between peak and off-peak usage?

The lowest headline rent may not be the best value once you add it all up.

 

5. What type of work is supported — and what’s restricted?

Depending on your R&D activities, you may need specialized environments or approvals.

Ask:

  • Are GLP/GMP workflows supported?

  • Are there clean rooms or QA/QC zones?

  • Is the facility licensed to support cell therapy, viral vectors, or tissue handling?

  • Is there a biosafety committee or support for regulatory audits?

Many early-stage biotechs discover too late that their lab space isn’t fit for their evolving science.

 

6. Can I grow—or shrink—without penalty?

Startups pivot. Milestones shift. You might need more—or less—space faster than you think.

Ask:

  • Can I add benches or lab bays as needed?

  • What’s the notice period to reduce space or exit?

  • Can I move into a private lab without breaking the agreement?

  • A good lab operator won’t penalize your growth—they’ll support it.

 

7. Who’s managing the facility—and do they understand science?

Landlords understand buildings. Scientists understand what labs really need.

Ask:

  • Is lab management done by people with life sciences backgrounds?

  • How quickly are maintenance issues resolved?

  • Is there on-site biosafety support or compliance guidance?

You don’t want your research held up by a broken fume hood or expired certifications.

 

8. What community and support services are included?

Space is just the start. Your first lab should be a launchpad, not a silo.

Ask:

  • Are there networking events, workshops, or investor pitch days?

  • Will I be part of a peer community of founders, CSOs, and advisors?

  • Are there connections to funders, service providers, or mentors?

  • The right lab operator does more than rent benches—they help build businesses.

 

Final Thought: Choose Flexibility Over Footprint

Leasing your first lab is more than a real estate transaction—it’s a strategic decision. Before you tie up capital, lock in long-term obligations, or sign a 40-page lease you barely understand, ask the tough questions.

For biotech startups, a Licensing Agreement through a dedicated lab operator offers flexibility, speed, and protection from the long-term risks embedded in traditional leases. It’s the smarter way to scale.

At SPEC Labs, we’ve designed our facilities—and our model—for the unique needs of Canada’s next generation of life sciences companies. If you’re graduating from an incubator or scaling into commercial research, our coworking wet lab model is built for you.

 










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