From Office to Laboratory: Global Solutions for Life Sciences Real Estate
The Global Shift: Necessity Drives Innovation
Across major innovation hubs worldwide, underutilised office buildings are finding new purpose as cutting-edge laboratories. This transformation isn't just solving real estate problems, it's accelerating scientific progress through practical, efficient solutions to critical lab space shortages.
The Global Context: Multiple Driving Forces
This trend is propelled by five key factors:
Booming life sciences sector accelerated by pandemic-era investments
Remote work creating surplus office inventory
Growing pressure to repurpose existing buildings for sustainability
Life science companies gravitating toward research institutions and talent pools
Post-pandemic self-sufficiency as countries build more localised medical capabilities
Australian Opportunity: Regulatory Reform Needed
Australia faces growing demands for laboratory space but lacks the UK's unified regulatory framework. Labs and offices typically fall into separate use classifications, creating significant hurdles for developers seeking conversion approvals.
The regulatory landscape needs reform: Australian authorities should consider streamlining change-of-use processes to accelerate these valuable conversions, following the UK model of reduced bureaucratic barriers.
Melbourne and Sydney's established health hubs present high-yield potential, while Adelaide and Brisbane offer cost-effective options for emerging ventures. Australian universities offer some regulatory flexibility but come with their own procurement complexities.
Key challenge: Regulatory reform is essential to unlock Australia's full potential in this space.
US: Scale and Market Force
American conversions showcase the impressive scale of this trend, with nearly 10 million square feet of office-to-lab projects underway by late 2021—a 49% year-over-year increase. Boston/Cambridge leads with converted spaces now comprising 30% of the region's laboratory inventory.
Decisive advantage: Established ecosystems of talent, institutions, and funding create immediate viability.
UK: First-Mover Advantage
Britain's pioneering "Class E" planning reform removes bureaucratic barriers by grouping offices, labs, and light industrial spaces under a single classification. This regulatory innovation has unleashed rapid conversions across the "Golden Triangle" of Oxford, Cambridge, and London, where demand for lab space has tripled since pre-pandemic levels.
Decisive advantage: Streamlined approvals process cuts months from project timelines.
European Landscape: Building Momentum
Continental Europe shows growing potential for office-to-lab conversions, with life sciences companies increasing by 13.5% over five years. Switzerland, Germany, and the Netherlands lead this growth, though specific conversion examples remain less documented than UK/US counterparts.
Decisive advantage: Strong sustainability mandates favour adaptive reuse over new construction.
Strategic Success Factors
The difference between successful and failed conversions comes down to three critical factors:
Location intelligence: Proximity to research institutions, talent pools, and industry clusters
Technical precision: Rigorous assessment of building suitability before commitment
Regulatory navigation: Early identification of compliance requirements and approval pathways
Regional Strategy Comparison
Future Outlook: Regulatory Reform is Key
As life sciences continue robust growth globally, several trends will shape this phenomenon:
Regulatory harmonisation: More countries must adopt UK-style planning reforms
Technical standardisation: Best practices becoming more codified across markets
Sustainability mandates: Environmental considerations moving from optional to mandatory
Geographic expansion: Growth beyond established hubs to secondary markets
Hybrid models: Flexible spaces supporting both laboratory and office functions
Cross-Border Lessons for Maximum Impact
The most critical lesson from global comparisons is clear: regulatory streamlining creates transformative results. Governments and regulatory bodies must adapt to accelerate change-of-use processes, removing unnecessary barriers while maintaining essential safety standards.
For property owners facing underperforming office assets, life sciences presents a compelling conversion opportunity—provided regulatory frameworks support rather than hinder this transition. The most successful projects will combine technical expertise with regulatory knowledge, creating laboratory spaces that advance scientific innovation while giving new purpose to underutilised buildings.
At Connected, we eliminate inefficiencies, minimise risk, and deliver certainty. Our hands-on team tackles complex challenges head-on, creating spaces where great work happens. For specialised projects like lab conversions and technical workplace transformations, we ensure both budget predictability and exceptional functionality.