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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KBR names C-suite duo to lead $5.3B government services spinoff

new leaders

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business.

Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey is joining as executive vice president and chief financial officer on July 1.

“Michael and Nick bring a highly complementary combination of operational leadership, financial expertise, and mission-driven experience, and together they will accelerate our impact for stakeholders,” Stuart Bradie, chairman, president and CEO of publicly traded KBR, said in a news release.

LaRouche currently is CEO of Serco North America, a Herndon, Virginia-based government services contractor. Veasey most recently was CFO of MAG Aerospace, a Fairfax, Virginia-based defense contractor.

SpinCo, a government services contractor, will launch with more than $5.3 billion in annual revenue and 20,000 employees. KBR’s total headcount is around 36,000. Branding for SpinCo, including a formal name, will be revealed in July.

“SpinCo is positioned as a top-tier provider of differentiated technology solutions, anchored by deep mission expertise, global scale, and a relentless commitment to delivering for our customers,” LaRouche says.

After the spinoff, the slimmed-down KBR will focus on its Sustainable Technology Solutions business, a provider of energy and industrial technology that generated $2.5 billion in revenue in 2025. Bradie will remain chairman, president and CEO of the business.

Both SpinCo and the new KBR will be public companies. The spinoff is scheduled to be completed in January.

Experts: Houston's VC ecosystem has set the foundation — now we need scale

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Fervo Energy went public earlier this summer. The Houston geothermal company priced its IPO at $27 per share, raised $1.89 billion, and opened the next morning at a market capitalization north of $10 billion. By most measures, it is the largest venture-backed cleantech IPO in history and an unambiguous win for Houston. It’s also a useful moment to look at where Houston's venture ecosystem stands and where it can go. The highlight: Houston's venture ecosystem has real foundations and, with increased company formation activity, can grow into the scale our city's ambitions deserve.

A Houston energy story in the national recovery

The recent uptick in Houston venture activity follows national trends. U.S. venture deal count contracted roughly 22 percent from its 2021 peak through 2024 before rebounding to about 16,700 rounds in 2025. Houston's 23 percent increase in VC funding from 2023 to 2024 is part of a national recovery of comparable magnitude over the same time window.

The energy sector is where Houston exhibits unique trends—and where the story turns clearly positive. (Houston's strong health and space sectors deserve their own separate consideration.) By deal count, energy-related rounds have accounted for 15 to 20 percent of Houston activity, roughly consistent over the past few years.

By capital, energy's share surged from about 14 percent in 2023 to over 60 percent in 2025, driven by a small number of large Houston-headquartered rounds, primarily in geothermal and related technologies. Fervo is the obvious anchor, but Sage Geosystems, Quaise Energy, Zeta Energy, Vaulted Deep, Applied Carbon and Mariana Minerals have all closed meaningful rounds. Houston is concentrated and accelerating as an energy capital market, an invaluable position to build upon.

From foundation to scale

The institutional pieces are in place. Greentown Labs, Activate, the Ion and others have built sector-specialized infrastructure most cities would struggle to assemble. Fervo itself is an alum of both Activate and Greentown Labs. Mercury Fund closed its $160 million Fund V, its largest ever. Houston Angel Network, GOOSE Capital, Fathom Fund, and broader pre-seed and seed capital coverage are here. The Houston $10 million-plus Series A list now includes 40 rounds since 2021, which break roughly into two eras. While 2021 to 2022 was biotech-heavy, with companies like Sporos Bioventures, RadioMedix, Cellenkos and Coya Therapeutics, 2024 to 2025 has tilted clearly toward energy, climate, and critical minerals, with Vaulted Deep, Applied Carbon, Mariana Minerals, Sage Geosystems and Ignis H2 Energy among them.

What’s less developed is the volume of seed-stage companies flowing into that capital. Imagine a dozen more Fervos coming out of that infrastructure over the next decade, each generating jobs, recycled founder capital, and the next wave of operators and angel investors. That is the kind of opportunity Houston has within reach if we build the company-formation pipeline to feed it. To be relevant on the national stage as a venture market, and to drive an economy the size of Houston's into the 2030s, the city needs to be doing closer to 20 Series A rounds per month rather than per year. That throughput implies roughly 1,000 seed rounds per year, feeding the funnel at a 20 percent to 30 percent graduation rate. Reaching such throughput depends on how many new founders Houston produces and how quickly our innovation ecosystem can help them achieve lift-off.

Houston in context

The comparative picture brings the scaling challenge into focus. Between 2021 and 2024, Houston-area startups closed between 126 and 153 disclosed venture rounds per year, against a national count between 9,854 and 14,125. That places Houston at a little over 1 percent of the U.S. deal count. For comparison, Austin ran about three times Houston's deal count each year.

At the Series A level, Houston closed between 12 and 24 rounds in any given year. The median Houston Series A across the period was about $10.7 million, compared with $15.4 million in San Francisco. Houston founders are raising fewer and smaller Series A rounds than founders in peer metros, which points directly to where Houston has the most room to grow.

The unicorn picture tells the same story. From 2021 through 2025, the U.S. produced 590 venture-backed unicorns. Four were Houston-based: Solugen and Axiom Space in 2021, Cart.com in 2023, and Fervo Energy in 2024. Adding HighRadius from 2020 brings Houston's all-time total to five. Austin added 19 over the same five-year window. The path from here is to make Houston's entries on lists like these less the exception and more the rule.

Where this leads

Houston has a real opportunity to become the deepest, most credible energy and climate capital market in the country, with the company formation, talent and operator density to support it. The data shows the foundation is already in place. Fervo, Solugen and the growing roster of energy-adjacent Series A graduates are proof. Fervo's IPO is the first of what should be many. Houston has not had a venture-backed cleantech liquidity event of this scale before, and the city now has one to reference, recruit against and build on. With increased company formation at the seed and pre-seed stages, a Fervo-scale outcome need not be a generational event in Houston, but instead, it can become part of a chain reaction powering the city's economy.

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Stephanie T. Schmidt, PhD, is the founder of a stealth startup, a Venture Fellow at Energy Transition Ventures, and an Executive MBA candidate at Rice University's Jones Graduate School of Business. Lawson Gow is the Chief Operating Officer of Greentown Labs. The full Houston VC landscape report is available at Energy Transition Ventures and CleanTech.Org.

Sources: Crunchbase, PitchBook-NVCA, Carta

8 can't-miss Houston business and innovation events for July

where to be

Editor's note: Summer is in full swing in Houston, but the city's innovation ecosystem isn't slowing down. This month brings AI workshops, energy and manufacturing discussions, entrepreneur-focused networking, and opportunities to connect with investors and industry leaders. Here’s what not to miss and how to register. Please note: this article may be updated to add more events.

July 7 — How Oil and Gas Professionals are Building Wealth Smarter

Hear from oil and gas professionals on how to preserve wealth at this event put on by Financial Advice Center. The conversation will touch on topics like investing, taxes and retirement planning.

This event is Tuesday, July 7, from noon-1 p.m. at the Ion. Register here.

July 7 — What AI, Cybersecurity, and Tequila Have in Common.

Join Blue People and Alpfa Houston for this engaging presentation on the advantages and risks associated with AI at the latest installment of Tech + Tequila Talk. Cybersecurity veteran Reynaldo Gonzalez will lead the conversation.

This event is Tuesday, July 7, from 5-7 p.m. at the Ion. Register here.

July 7 — Speed to Market: Houston’s Advanced Manufacturing Edge

The Greater Houston Partnership presents a forum that explores what allows advanced manufacturing projects in Houston to move from concept to operation, where delays and bottlenecks occur, and more. Industry leaders Jennifer Clement from CliftonLarsonAllen LLP and Sarah Janes from San Jacinto College will lead the discussion.

This event is Tuesday, July 7, from 11:30 a.m.-1 p.m. at the Partnership Tower. Register here.

July 9 — Capital Connections Summit

Houston City College Center for Entrepreneurship will host the Capital Connections Summit this month, with a panel discussion focused on access to capital and technical assistance for small businesses and entrepreneurs. The event will be moderated by the U.S. Small Business Administration Houston District Office and will feature lenders, nonprofit microlenders, business advisors, and entrepreneurial support organizations. A live Q&A will follow the panel.

This event is Thursday, July 9, from 11 a.m.-1:30 p.m. at Houston City College Central Campus. Register here.

July 9 — Upstream: Digital Tech Meetup at Second Draught

Join Timbergrove at this month's gathering of energy, operations and technology professionals from across the upstream ecosystem. Discuss challenges, explore new ideas and network over pizza and beer at Second Draught.

This event is Thursday, July 9, from 5:30–8 p.m. at the Ion. Register here.

July 14 — Why Networking Isn’t Turning Into Deals, And What To Do Instead

Jada Powell, founder of Powell Consulting Group, will break down why networking often fails to convert into deals and what companies can do differently to turn conversations into qualified opportunities. Powell works with oil and gas, energy, and industrial companies on business development solutions. This session is part of the monthly Pipeline Series: How Oil & Gas Companies Actually Grow Revenue.

This event is Tuesday, July 14, from noon-1 p.m. at the Ion. Register here.

July 15 — From Pilot to Performance: Building Your AI Procurement Roadmap

It's not too late to join in on the GHP's two-part AI series on moving from experimentation to implementation. In session two, explore how procurement and supply chain leaders can scale AI responsibly to create long-term business value. This event will be led by Cassye Cook Provost, founder and principal of RossGrigsby Consultancy.

This virtual event is Wednesday, July 15, from 8:30-10 a.m. Register here.

July 30 — Rice University Summer Engineering Innovation Program - Demo Day 2026

Meet the young minds and see the final team project presentations from Rice University’s Summer Engineering Innovation Program. The 10-week program challenges Rice students to solve real-world challenges using AI, digital engineering, model-based systems engineering and Industry 4.0 technologies.

This event is Thursday, July 30, from 6-8 p.m. at the Ion. Find more information here.

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