The real estate challenges, opportunities Houston faces as hub for biotech, according to expert

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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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8+ can't-miss Houston business and innovation events in January

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Editor's note: Kick off 2026 by hearing insightful talks and making meaningful connections in Houston's innovation scene. From networking workshops to presentations from major industry leaders, here's what not to miss and how to register. Please note: this article may be updated to include additional event listings.

Jan. 13 – Financing the Future

Hear from James Blake, head of capital markets at Fervo Energy, in this informative talk. Blake will cover the current investment landscape for geothermal power, how geothermal projects are structured and the role of policy incentives and innovative financing models in moving the industry forward. A small reception follows.

This event is Tuesday, Jan. 13, from 5:30-7:30 p.m. at the Ion. Register here.

Jan. 13 – Your Path to the Boardroom

Visit Sesh Coworking to hear from Keith Dorsey, an executive advisor and author of The Boardroom Journey, as he shares insights and lessons from hundreds of corporate board members and presents an actionable roadmap for women at every stage of their careers. Dorsey will speak on what "optimal diversity” means in the boardroom, how purpose-driven leaders sustain resilience under relentless pressure and why inclusive leadership is non-negotiable for growth and innovation.

This event is Tuesday, Jan. 13, from 6-8 p.m. at Sesh Coworking. Register here.

Jan. 14 — A Conversation with Dr. Wayne J. Riley on Leading Through Healthcare Transformation

Rice Business Partners will host Dr. Wayne J. Riley, president of SUNY Downstate Health Sciences University, for a moderated discussion with Dean Peter Rodriguez. Riley will share insights on leading complex healthcare organizations in an era of unprecedented industry challenges and reflect on his time at the Jones Graduate School of Business.

This event is Wednesday, Jan. 14, from 6:30-8:30 p.m. at McNair Hall on Rice University's campus. Register here.

Jan. 14 — VDW: Igniting Connections for Startup Success

Entrepreneurial communications instructor Diana Massaro will lead Lilie's latest Venture Development Workshop, focused on soft skills like clear communication, active listening and compelling introductions. Attendees will gain a personalized networking game plan and communication tools to turn casual encounters into meaningful relationships to support their ventures or careers.

This event is Wednesday, Jan. 14, from 6-7:30 p.m. at the Liu Idea Lab for Innovation and Entrepreneurship on Rice University's campus. Register here.

Jan. 21 — Upstream: Digital Tech Meetup

This month's Upstream: Digital Tech Meetup will explore how AI and real-time monitoring are being applied in safety-critical offshore environments, what’s working today, where the biggest gaps remain going into 2026 and how operators and service companies are approaching adoption. Expect to hear from leaders at NOV, Incom Solutions, Timbergrove and others.

This event is Wednesday, Jan. 21, from 8:30-10:30 a.m. at the Ion. Find more information here.

Jan. 22 — HEAD AND HEART: Leading Technology with Humanity While Everything Changes

Hear from Chris Hyams, former CEO of Indeed, at the latest installment of Rice's Master of Engineering Management & Leadership Seminar Series. Hyams will present on the intersection of technology, humanity and change—and how AI is reshaping all three.

This event is Thursday, Jan. 22, at 6 p.m. at Duncan Hall on Rice University's campus. Find more information here.

Jan. 22 – NASA Tech Talk

This month's NASA Tech Talks will feature a special delegation from the UK Science and Technology Network. Expect to hear from a panel of UK space experts, followed by a fireside chat featuring David Alexander, head of the Rice Space Institute, and Meganne Christian, ESA reserve astronaut and senior exploration manager.

This event is Thursday, Jan. 22, from 6-7 p.m. at the Ion. Find more information here.

Jan. 29 – Ignition Hub Startup Career Fair

Lilie will host the Ignition Hub Startup Career Fair this month in partnership with Rice University’s Center for Career Development and Career Development Office. The fair will bring together some of the most innovative, high-growth companies to offer Rice students exciting opportunities. Startups can apply to be considered for the fair. The event is open to Rice University undergraduate, graduate, MBA, and PhD students.

This event is Thursday, Jan. 29, at Grand Hall on Rice University's campus. Find more information here.

Jan. 29 – Health Policy Symposium: Value-Based Care & the Health Care Workforce

The Humana Integrated Health Systems Science Institute at the University of Houston will host its latest Health Policy Symposium this month, focused on the evolving landscape of value-based care and the importance of preparing and strengthening the health care workforce. Hear keynote addresses from leaders at Humana, UH, the American Medical Association and Houston Health Department.

This event is Thursday, Jan. 29, from 11:30 a.m.-1:30 p.m. at the Tilman J. Fertitta Family College of Medicine on Rice University's campus. Find more information here.

Jan. 30 — GHP Annual Meeting

The Greater Houston Partnership's premier event will highlight the region’s progress, honor visionary leadership and set the tone for the year ahead. Hear reflections from outgoing board chair, Gretchen Watkins (former -president of Shell USA); welcome incoming board chair, Armando Perez (EVP of H-E-B Houston); and more

This event is Friday, Jan. 30, from 11:30 a.m.-1:30 p.m. at Hilton Americas. Find more information here.

CPRIT CEO: Houston’s $2B in funding is transforming cancer research and prevention

fighting cancer

With its plethora of prestigious health care organizations like the University of Texas MD Anderson Cancer Center, UTHealth Houston, and the Baylor College of Medicine, Houston sits at the heart of cancer research and prevention in Texas.

Of course, it takes piles of cash to support Houston’s status as the state’s hub for cancer research and prevention. Much of that money comes from the Cancer Prevention and Research Institute of Texas (CPRIT).

Data supplied by CPRIT shows organizations in Harris County gained $2.3 billion in institute funding from 2009 through 2025, or nearly $145 million per year. That represents almost 60 percent of the roughly $4 billion that CPRIT has granted to Texas institutions over a 16-year period.

“The life sciences ecosystem that has developed and changed in Houston is phenomenal,” Kristen Doyle, who became the agency’s CEO in July 2024, tells InnovationMap. “In the next decade, we will look back and see a great transformation.”

That ecosystem includes more than 1,100 life sciences and biotech companies, according to the Greater Houston Partnership.

Houston plays critical role in clinical trials

Texas voters approved the creation of CPRIT in 2007. Twelve years later, voters agreed to earmark an extra $3 billion for CPRIT, bringing the state agency’s total investment in cancer research and prevention to $6 billion.

To date, CPRIT money has gone toward recruiting 344 cancer researchers to Texas (mainly to Houston) and has supported cancer prevention services for millions of Texans in the state’s 254 counties. CPRIT funding has also helped establish, expand, or relocate 25 cancer-focused companies. In Houston, MD Anderson ranks as the No. 1 recipient of CPRIT funding.

Regarding cancer research, Doyle says Houston plays a critical role in clinical trials.

“[Clinical trials are] something that CPRIT has focused on more and more. Brilliant discoveries are crucial to this whole equation of solving the cancer problem,” Doyle says. “But if those brilliant ideas stay in the labs, then we’ve all failed.”

Researchers conduct more clinical trials in Houston than anywhere else in the U.S., the Greater Houston Partnership says.

Doyle, a 20-year survivor of leukemia, notes that a minority of eligible patients participate in clinical trials for cancer treatments, “and that’s one of the reasons that it takes so long to get a promising drug to market.”

An estimated 7 percent of cancer patients sign up for clinical trials, according to a study published in 2024 in the Journal of Clinical Oncology.

MD Anderson takes on cancer prevention

Doyle also notes that Houston is leading the charge in cancer prevention.

“We get some national recognition for programs that have been developed in Houston that then can be replicated in other parts of the country,” she says.

Much of the work in Houston focusing on cancer prevention takes place at MD Anderson. The hospital reports that it has received more than $725 million from the CPRIT since 2007, representing approximately 18 percent of CPRIT’s total awards.

“These efforts can have profound impact on the lives of patients and their families, and this funding ensures our exemplary clinicians and scientists can continue working together to drive breakthroughs that advance our mission to end cancer,” Dr. Giulio Draetta, chief scientific officer at MD Anderson, said in a November news release, following the most recent CPRIT award for the hospital totaling more than $29 million.

CPRIT funding for Houston institutions supplements the more than $4.5 billion in federal funding for health and life sciences research and innovations that the Houston area received from 2020 to 2024, according to the Greater Houston Partnership.

“We are curing cancer every single day,” Doyle says of CPRIT. “Every step that we are taking — whether that’s funding great ideas or funding the clinical trials that are bringing promising drugs to Texas and to the world — we are making a difference.”

Houston energy tech co. breaks ground on low-cost hydrogen pilot plant

Coming Soon

Houston’s Lummus Technology and Advanced Ionics have broken ground on their hydrogen pilot plant at Lummus’ R&D facility in Pasadena, Texas.

The plant will support Advanced Ionics’ cutting-edge electrolyzer technology, which aims to deliver high-efficiency hydrogen production with reduced energy requirements.

“By demonstrating Advanced Ionics’ technology at our state-of-the-art R&D facility, we are leveraging the expertise of our scientists and R&D team, plus our proven track record of developing breakthrough technologies,” Leon de Bruyn, president and CEO of Lummus, said in a news release. “This will help us accelerate commercialization of the technology and deliver scalable, cost-effective and sustainable green hydrogen solutions to our customers.”

Advanced Ionics is a Milwaukee-based low-cost green hydrogen technology provider. Its electrolyzer converts process and waste heat into green hydrogen for less than a dollar per kilogram, according to the company. The platform's users include industrial hydrogen producers looking to optimize sustainability at an affordable cost.

Lummus, a global energy technology company, will operate the Advanced Ionics electrolyzer and manage the balance of plant systems.

In 2024, Lummus and Advanced Ionics established their partnership to help advance the production of cost-effective and sustainable hydrogen technology. Lummus Venture Capital also invested an undisclosed amount into Advanced Ionics at the time.

“Our collaboration with Lummus demonstrates the power of partnerships in driving the energy transition forward,” Ignacio Bincaz, CEO of Advanced Ionics, added in the news release. “Lummus serves as a launchpad for technologies like ours, enabling us to validate performance and integration under real-world conditions. This milestone proves that green hydrogen can be practical and economically viable, and it marks another key step toward commercial deployment.”

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This article originally appeared on EnergyCapitalHTX.com.

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