As Companies Grow, Manufacturing Space Highly Desired
What to Consider Before Converting a Building
BY PETER BUSSETT AND MARK LANGAN
Special to the Business Journal
San Diego has established itself as a hub for biotechnology companies.
Areas such as Torrey Pines, Carmel Valley, and Sorrento Mesa are burgeoning with biotech firms. The attraction of these companies to the area, combined with a diverse real estate economy, will help sustain San Diego’s real estate industry in 2002.
However, the amount of new development this year will be limited by land constraints and recently completed buildings yet to be absorbed into the market. Consequently, brokers and biotech facility managers are looking to convert existing buildings.
Many buildings, once occupied by high-tech and industrial companies, have been emptied and made available for possible use as biotech space. Some buildings will be easier to convert than others, depending on the needs of a particular biotech company.
The saying, “location, location, location,” can be applied to the biotech conversion consideration. Biotech companies typically prefer to establish their facilities in close proximity to hospitals, clinics, medical research institutions, universities, and other biotech companies. This enables them to share resources such as faculty, researchers, libraries and even students for internships or full-time employment.
North County coastal areas, particularly Carlsbad and Oceanside, also are emerging as biotech communities. These areas still offer available land, and offer higher vacancy rates for built products. As more biotech companies begin to shift from a research focus to both research and manufacturing, companies are finding it more cost-effective to locate manufacturing operations in these areas.
Infrastructure “must-haves” should be identified, especially for older buildings. Is there adequate electrical and gas service to the site? Does the building have broadband fiber-optic capabilities?
Is the existing fire sprinkler density adequate? Are receiving and shipping facilities adequate? Be sure that essential infrastructure can be installed cost-effectively and around physical obstacles.
Will the facility require the use and storage of hazardous materials? The facility may require retrofit fireproofing, explosion-proof rooms, fire exits, sprinkler systems and emergency power systems.
Converting a building for biotech use requires a thorough cost-analysis of all infrastructure “must-haves,” site and structural improvements, and specific design requirements.
Analyze what type of building it is (R & D;, office, manufacturing), vs. the type of building it realistically could become within the allotted budget. One of the most costly mistakes a company can make is not thinking through the overall conversion process before proceeding with the project.
Bussett is vice president of operations, and Langan is vice president of technical services for Smith Consulting Architects.
