As Massachusetts is facing a surplus of lab space, Rhode Island life science leaders are celebrating taking the first steps to develop incubator lab space in Providence.
The R.I. Life Science Hub recently approved an agreement with developer Ancora L&G to build lab space meant for early-stage life science companies. The facility would span 30,000 square feet on the fourth floor of 150 Richmond St. in the I-195 Redevelopment District in Providence. The building is under construction and expected to be completed by the end of 2025.
The lab space, which will be subleased from Brown University, will be located between the R.I. Department of Health laboratory on the first three floors and commercial lab space on the upper floors.
The hub is investing $10 million of its $45 million budget to fund the construction, as well as accommodations for project management and other startup expenses. The I-195 Redevelopment District Commission has also committed $1 million for construction costs and Brown is investing $13 million over 10 years as part of an existing agreement with the developer to fund the lab’s annual operating expenses.
The plans come as vacant lab space in the Greater Boston area is growing. Real estate giant CBRE Group Inc. reported on Oct. 8 that life science vacancy rates in and around Boston reached 19.6% in the third quarter of 2024, which is 2.9% higher than the previous quarter and almost triple the same period last year.
But Rhode Island has been facing a different problem – a lack of space for young, small companies.
“It doesn’t exist,” said Neil D. Steinberg, hub chairman. “[The incubator lab space is] filling the void.”
Steinberg notes that the hub’s plan is to build labs meant for startup and emerging life science companies that only need one or two workstations. Then as companies expand, they move to larger commercial lab space.
There is some commercial lab space for more-developed companies in the area, but not a lot. Steinberg says the R.I. Life Science Hub would be supportive of building lab space for more-developed life science companies in the future, but real estate developers will likely be leading the charge if they notice increasing demand.
Meanwhile, a survey of RI Bio’s 383 members indicated there is demand for incubator lab space, according to Glenn Robertelli, the group’s executive director.
Robertelli expects the early-stage labs will fill within 12 to 24 months of opening. The exact timing will depend on how many workstations are in open space or private rooms and the demand for those spaces. It would take several years before there is a noticeable increase in demand for larger commercial lab space in the area, Robertelli says.
“It’s going to be a slow progression,” he said.
The hub is planning to begin holding focus groups with life science entrepreneurs soon to understand what they are looking for in the incubator lab space, says Patrice Milos, R.I. Life Science Hub’s interim president.
Milos says the hub’s labs will meet the demand from early-stage companies spinning out of local universities that conduct lab work in Massachusetts because there’s nothing available that suits their needs here.
She’s also confident the hub hasn’t missed the mark on developing lab space as the life sciences sector continues to grow and schools such as Brown and the University of Rhode Island have researchers looking to commercialize their work.
“The scientific innovation we’re seeing today is nothing like we’ve seen before,” Milos said. “It’s a really opportune time for the life sciences in Rhode Island.”
