Houston's access to lab space continues to be a challenge for biotech companies. Photo via Getty Images

In the decade prior to COVID, when it came to early stage biotech companies establishing a foothold in Houston, space-wise, there were only a handful of options to choose from. Because of specialized equipment needs, including in many cases, the requirement for vent hoods, multiple sinks, and 24/7 air-conditioned space, traditional flex type projects were not a ready-made option. UH’s Technology Bridge offered those amenities, and while it worked for some, it was not intended as a permanent business home. Most emerging biotech firms found space that was a partial fit, and modified it to work (at their cost).

Houston’s Rise on the National Stage

For a variety of reasons, including its broad talent pool, lower cost of operations, and more favorable business climate, Houston has continued to attract biotech companies from other states. Following on the heels of new and expanding life science firms, and a supportive ecosystem, investor interest in building and purchasing properties to meet their specialized requirements has been a natural result. Unlike traditional office occupiers, lab users need physical space, and are not candidates for a hybrid or work from home model.

TMC Proximity Premium

Land costs inside Loop 610 have historically trended higher than suburban alternatives. For this reason, the newest projects completed near TMC like Helix Park and the planned Bioport are focused on much larger firms and institutions with the ability to commit to a long lease term and pay a premium rent. A second tier of real estate investors has also entered the market, however, purchasing nearby 80’s vintage projects, upgrading them, and repurposing the space to meet demand from mid-size or less creditworthy biotech companies. Existing small to mid-size tenants currently housed in these projects can expect to see bumps in both rent and expenses.

As an alternative to close-in options, but within a reasonable drive of the TMC, Pearland, Sugar Land and Stafford have increasingly become a location choice for biotech firms. Pearland’s EDC has targeted life science companies needing custom-built manufacturing facilities with economic incentives for some time. Lonza, Merit Medical, and formerly St. Paul-based Cardiovascular Systems are just three recent examples touted on their website.

Planning for Affordable Lab Space Options

Management teams for early stage companies are stretched thin, and are not always prepared for the time and money it takes to find and equip office/lab space.

Not all suburban landlords want to incur the sizeable costs for a customized build out, which can range between $40 and $200 per square foot. Entrepreneurs are also surprised by the 4-6 months of lead time it typically takes to identify space options, negotiate a lease, and permit and build the improvements (including the unexpected costs of bringing an older project in compliance with current energy and building codes).

However, with realistic expectations about these challenges, the good news is that once settled into a facility that is a fit, Houston’s emerging biotech companies can thrive and grow.

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Julie King is President of NB Realty Partners. She has mentored and provided commercial real estate advice to technology, biotech, and early-stage companies for over 23 years.

What guest articles trended this year on InnovationMap in 2019? Photo by PeopleImages

Top 5 Houston innovation guest columns of 2019

2019 IN REVIEW

Editor's note: InnovationMap is Houston's only news source and resource about and for startups, and some of this year's top stories were penned — or, more realistically, typed — but the Houston innovation community itself. As we get ready for 2020, let's see what guest columns were most read in 2019.

How technology is disrupting — and improving — the real estate industry in Texas

Buying a home is more digitized than ever — and here's how that's affecting the industry. Photo courtesy of HAR

A recent lawsuit is rocking the residential real estate industry across the country. Home sellers whose properties were listed on one of 20 MLSs claim The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. violated the federal antitrust law by conspiring the sellers to pay an inflated amount to the buyer's broker.

The lawsuit highlights a new need for home buyers and sellers: transparency. Gone are the days when real estate agents can take a hefty commission from his or her clients without providing value that is worthy of the price tag. The sellers who came forward to shed light on this issue have provided further proof that the current real estate model is outdated, and some serious changes could be on the way. Continue reading.

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Alex Doubet is the founder and CEO of Door, Inc. (Door.com), which is a residential real estate startup company based in Texas.

Why it's important for Texas startups to get funding within the Lone Star State

Texas startups should be getting funded with Texas money, and here's why. Getty Images

When you set out to disrupt a long-standing industry, one of the most important aspects is figuring out where you are going to get the money. Odds are, you are going to be OK with breaking the mold on other traditional practices such as forgoing the venture capitalist firms for smaller companies who share your innovative vision and want to invest in it.

That philosophy works well in Texas seeing as the big venture capitalists tend to stay on the East and West Coasts.

There are dozens of things to think about when starting a company. Funding can be the most important, and there are many ways to approach raising funding for your startup. Here are a few things to consider. Continue reading.

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Alex Doubet is the CEO and founder of Door Inc., a Texas-based, tech-infused real estate platform.

Houston expert shares her advice on how much startups should spend on marketing

When it comes to setting up a marketing budget for your startup, considering every angle is important. Getty Images

Industry research suggests spending 5 percent to 12 percent of total revenue on an annual marketing budget. At Integrate Agency, we believe marketing spend should be determined from key data points, versus current size. We shepherd our clients through a five-step process to calculate how much they should spend on marketing to maximize their ROI. Continue reading.

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Allie Danziger is the founder and president of Houston-based Integrate Agency, which focuses on digital marketing and public relations.

Finding lab space for startups and independent researchers in Houston needs to be easier, according to this expert

Rentable lab space is hard to come by. Getty Images

Finding coworking space is getting easier and easier for startups, but the same can't be said for startups looking for lab space. If Houston wants to continue to grow and develop its innovation ecosystem — specifically within research and development in the health sciences industry — the city needs more opportunities for small lab space real estate. Continue reading.

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Julie King is president of NB Realty Partners. She has mentored and provided commercial real estate advice to technology, biotech, and early-stage companies for over 20 years.

New technology gives this Houston hospital a competitive edge

A new prostate cancer treatment at Houston Methodist is enhancing the system's patient care. Getty Images

As the top ranking hospital in Texas and one of the biggest employers in Houston, Houston Methodist Hospital is poised to treat the thousands of Texan men who will be diagnosed with prostate cancer this year.

Building on its legacy of delivering advanced cancer treatment, the healthcare giant is one of the first hospitals in the United States to offer men a benign approach to treating localized prostate cancer, using high intensity focused ultrasound, or HIFU. HIFU is a minimally invasive procedure that allows patients to maintain their quality of life with potentially fewer side effects. Continue reading.

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Brian Miles, M.D, is a practicing urologist and professor of urology at the Institute for Academic Medicine at Houston Methodist.

Rentable lab space is hard to come by. Getty Images

Finding lab space for startups and independent researchers in Houston needs to be easier, according to this expert

Lab space race

Finding coworking space is getting easier and easier for startups, but the same can't be said for startups looking for lab space. If Houston wants to continue to grow and develop its innovation ecosystem — specifically within research and development in the health sciences industry — the city needs more opportunities for small lab space real estate.

A little history

Houston has increasingly become a magnet for innovative life science companies, seeking to benefit from the Texas Medical Center's cadre of connections and the city's deep talent pool. While cutting edge research and licensed technology has long been a part of the TMC institutions and Houston landscape, until 2016, independent lab users had few options to start and grow their companies.

In March of 2016, JLabs at TMCx opened its doors, offering 34,000 square feet of shared office space, 22 private labs and two shared lab spaces. University of Houston's Innovation Center, located in a repurposed Schlumberger campus, began operation in September of the same year, offering 16 private labs and two shared lab spaces.

These two alternatives are fit out with benches and other specialized equipment and price their space similar to a furnished coworking model. However, both facilities have a preference for certain users.

In the case of UH's space, its priority is to accommodate companies that are licensing and commercializing university technology. JLabs also has a curated tenant pool — drawn from the local and national companies that fit their specific profile. Sharing lab space is not a fit for every company — especially those that are regulated or prohibited from doing so. What appears to be an unmet need is affordable independent lab space for companies ready to launch from shared space.

Unique requirements

Aside from equipment that must be purchased and installed, lab users require more electrical power, plumbing, and air-conditioning than typically found in available suites in independent office parks. Second generation lab space under 2,000 square feet is extremely hard to find, and traditional landlords prefer a 5-year lease commitment.

While several new projects have been announced — and a new crop of landlords are trying to capitalize on the city's increased demand for specialized space — their pricing model is a better fit for established companies. From a user perspective, given the capital constraints of early stage life science companies, it is worth exploring the option to convert traditional warehouse space for lab use in exchange for a medium term commitment.

Buyer beware

Migrating from a full service lab to an independent suite does come with a warning, however, especially if a company is regulated and the condition of the space is subject to inspection. Lab tenants are well advised to factor in issues like the age of the air-conditioning units, whether a future backup power source is permitted, and the method for removal of medical waste. For firms that are in the pre-revenue stage, they should also be prepared to pay some amount of prepaid rent and the cost of customized alterations.

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Julie King is president of NB Realty Partners. She has mentored and provided commercial real estate advice to technology, biotech, and early-stage companies for over 20 years.

Sharing common space or having a glass-wall office might not be ideal for your company. Getty Images

3 things to consider before investing in coworking space for your company

Pros and cons

While coworking is an established trend in many of the nation's larger metropolitan areas, the innovative approach to office space has been slower to gain momentum in Houston from a tenant's perspective, making up less than 1 percent of the city's total inventory of office space.

Coworking has tended to appeal to startups and one- or two-person consulting firms and is currently available in Houston in various forms and price points. Nationally branded WeWork and Techspace offer an amenity-rich and more expensive option geared toward corporate clients, while other coworking providers, like Station Houston and The Cannon, have targeted tenants seeking connections to investors and mentors.

Coworking options can now be found in many parts of Houston. Office landlords are even converting portions of their buildings to coworking suites to meet increased demand.

Before you invest in this new type of office space, consider the following aspects that come with coworking space.

1. Flexibility is the key driver
From a user experience point of view, coworking has both advantages and disadvantages. Flexibility and price are the key elements. In contrast to multiyear year lease terms required by traditional landlords, coworking is a shorter commitment. Terms of six to 12 months for fully furnished offices are the norm, but month-to-month leases are also common. Rent is calculated based on a per-person model, compared to the rent-per-square-foot structure of a traditional office or warehouse lease.

For a one-person company or a small team, sharing a kitchen and conference room can be well worth the lower monthly rent expense, ranging between $800 and $2,000 per month. Touch and go memberships are also available at most coworking locations, providing access to the common areas for a typical monthly fee of less than $200, but without the benefits of a private office. However, as companies scale up and grow, the per-person model for rent begins to make less economic sense.

2. Beware of the add-ons
Coworking typically provides shared use of conference rooms with a monthly allocation of time for each tenant. Some offer beer, coffee, and social and networking events, and a few even permit dogs. It is important to read the fine print of the agreements and be prepared to pay additional charges for extra amenities not included in the monthly rent — everything from garage parking to fees for internet, furniture rental, snacks, and kitchen use.

3. Privacy and identity
Sharing a glass-walled team office with coworkers and taking private calls in a shared space is not the right fit for every company. For some firms, their critical objective is a work environment that reflects company brand, culture, or professional image — a feature not necessarily offered with coworking.

However, as Houston has witnessed changing work patterns, commute issues, and the importance of work-life balance, our city has responded and can now offer many more flexible workspace options.

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Julie King is president of NB Realty Partners. She has mentored and provided commercial real estate advice to technology, biotech, and early-stage companies for over 20 years.

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TMC names inaugural cohort for unique accelerator with UK

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Sixteen digital health and medical device startups founded in the United Kingdom have been selected for a customized accelerator at the Texas Medical Center's Innovation Factory.

In partnership with Innovate UK, TMCi created the Innovate UK Global Incubator Programme, a new accelerator that supports UK businesses as they build their United States go-to-market plan. The program builds the BioBridge relationship between TMC and the UK that was originally established five years ago.

“The TMC UK BioBridge program was launched with the UK Department for Business and Trade in 2018 to serve as a gateway for advancing life sciences and foster innovation and research between our two countries," says Ashley McPhail, chief external affairs and administration officer for TMC, in a news release. "We saw an opportunity to work with Innovate UK to develop a larger program with the UK after the success of the 11 companies that previously participated in our health tech accelerator."

The 16 companies will participate in the program from June to November. The cohort is expected to arrive in Houston on June 5 and have access to TMCi's facilities, network of mentors and potential clients, funding, potential customers, and curated programing — all while being a unique entry point into the US. The new offering joins three other globally recognized curriculums: Biodesign, Accelerator for Cancer Therapeutics, and Health Tech.

“TMCi nurtures long-term growth, development, and competitiveness to increase startups chances of success and global expansion," says Emily Reiser, associate director of TMC Innovation. "By bringing their novel technologies and exposing them to a curated selection of TMC’s expert network, startups receive support and evaluation to build, scale, and expand in the US market."

Two of the cohort's specialties include cardiovascular and oncology — two of TMC's strongest areas of expertise — with solutions ranging from surgical devices to AI-enabled risk stratification and hospital efficiency.

Innovate UK is the country's national innovation agency dedicated to supporting business-led innovation in all sectors.

“The United Kingdom is fully committed to improving global healthcare through scientific collaboration," says His Majesty’s Consul General in Texas Richard Hyde in the release. "Through the expansion of the TMC UK BioBridge and in partnership with Innovate UK, this programme will help to expose the brightest and best British companies to the world’s largest medical city. Our companies will collaborate and grow as they work to develop cutting edge technology. The partnership between the UK Government and TMC demonstrates that international collaboration can drive both economic growth and improvement to quality of life.”

The 16 companies making up the inaugural cohort are as follows, according to TMC.

  • AINOSTICS aims to revolutionize the treatment and prevention of neurological conditions, such as dementia, by developing innovative AI-enabled solutions that draw novel insights from routinely acquired non-invasive medical scans to deliver accurate diagnosis and outcome prediction, and in turn facilitate personalized care and timely access to disease-modifying treatments for patients.
  • Alvie is a blended human plus AI-enabled digital solution providing personalised pre and rehabilitation coaching and supportive care for cancer and surgery. Alvie's technology combines data profiling, risk-stratification and tailored prescriptions of health and well-being with curated educational content, targeted behaviour change coaching and expert support through chat messaging and virtual consultations.
  • C the Signs™ is a validated AI cancer prediction platform, which can identify patients at risk of cancer at the earliest and most curable stage of the disease. Used by healthcare professionals, C the Signs can identify which tumor type a patient is at risk of and recommend the most appropriate next step in less than 30 seconds. The platform has detected over 10,000 patients with cancer, with over 50 different types of cancer diagnosed, and with a sensitivity of >98% for cancer.
  • At PEP Health, We believe all patients deserve the best care possible. Our cutting-edge machine-learning technology enables healthcare organisations, regulators, and insurers the real-time, actionable insights they need to have a direct and dramatic impact on patient experiences.
  • PreciousMD improves the lives of lung-cancer and other lung-related illnesses patients worldwide by enabling imaging-based diagnostics needed for personalized treatment pathways.
  • Ufonia is an autonomous telemedicine company, we use large language models and voice AI to increase the capacity of clinical professionals.
  • My mhealth offers digital therapeutics for a range of long-term conditions- COPD, Asthma, Diabetes and Heart Disease. Our product has been successfully deployed in the UK and India, with >100,000 users registered to date. Our solutions empower patients to self-manage their conditions, resulting in dramatic improvements in outcomes, as evidenced through multiple clinical trials and real-world evaluations.
  • At Surgery Hero, we offer a clinically backed solution that ensures whole-human support before and after surgery. We help health systems, employers and health plans cut costs without sacrificing quality of care.
  • Panakeia's software platform enables extremely rapid multi-omics profiling in minutes directly from routinely used tissue images without needing wet lab assays.
  • QV Bioelectronics are striving to deliver longer, better quality lives for brain tumour patients. Using their first-of-its-kind implantable electric field therapy device, GRACE, QV will provide effective, focal & continuous treatment without impacting patient quality of life.
  • 52 North is a med-tech company focused on improving health outcomes and health equity by reinventing care pathways. The NeutroCheck® solution is a finger-prick blood test and digital platform built to significantly improve safety and quality of life for cancer patients, by helping to identify at-home those patients who are at risk of the most fatal side-effect of chemotherapy: neutropenic sepsis.
  • Somnus is fulfilling an unmet need in global healthcare by developing real-time, point of care blood propofol monitoring. Its products will improve the care of sedated and anaesthetised patients, save money for hospitals, and facilitate a major reduction in greenhouse gas emissions.
  • ScubaTx is a breakthrough organ transplant preservation company established to solve the global unmet need for cost-efficient and longer-duration organ preservation technology. ScubaTx has developed a simple, small and affordable device which uses Persufflation to extend the preservation of organs.
  • IBEX is on a mission to help people live active, healthy and productive lives by increasing their access to early diagnosis of osteoporosis. The IBEX BH software as medical device delvers routine, automated assessment of fracture risk from routine radiology for earlier detection and more equitable treatment of osteoporosis.
  • NuVision produces products derived from donated human amniotic membrane that are used in ophthalmology to help patients with chronic, traumatic and post-surgical wounds of the eye to be treated earlier and recover more fully and more quickly. The company’s products are also used in the management of dry eye disease, a debilitating conditions that affects around 17m people in the USA.
  • Calon Cardio-Technology is on a mission to improve quality of life for patients with Left Ventricular Assist devices (LVAD) and reduce the common post operative complications associated with these implantable heart pumps. We plan to do this by introducing a completely wireless heart pump system and augment patient follow-up with built-in remote monitoring capabilities.

UH lab using mixed reality to optimize designs for the Moon and Mars

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University of Houston researchers and students are bringing multiple realities together to help improve the design process for crewed space missions.

Helmed by Vittorio Netti, a researcher for UH and a space architect, the university has launched an XR Lab within the University of Houston architecture building. The lab allows researchers to combine mixed reality (MR), virtual reality (VR), augmented reality (AR) and extended reality (XR) to "blend the physical and digital worlds" to give designers a better understanding of life in space, according to a release from UH.

In the lab researchers can wear MY space suits and goggles, take a VR space walk, or feel what it's like to float to the International Space Station with the help of XR and a crane.

The area in which the researchers conduct this work is known as the "cage" and was developed during a six-month research and design study of lunar surface architecture sponsored by Boeing, which aimed to learn more about the design of a lunar terrain vehicle and a small lunar habitat.

The work is part of UH's Sasakawa International Center of Space Architecture (SICSA), which is led by Olga Bannova, a research associate professor and director of the space architecture graduate program at UH.

She says work like this will drastically cut down research and development time when designing space structures.

“These technologies should be harnessed to mitigate the dependency on physical prototyping of assets and help optimize the design process, drastically reducing research-and-development time and providing a higher level of immersion,” Bannova said in a statement.

Today the research team is shifting its focus on designing for a Mars landing. In the future, they aim to demonstrate and test the system for habitats designed for both lunar and Martian surfaces. They are also working with Boeing to test designs in microgravity, or zero gravity, which exists inside the International Space Station.

Mixed Reality Raising the Bar for Space Architecture on the Moon and MarsStep into this 'Cage' at the University of Houston where physical and digital worlds are merged, allowing students to see and ...