Few Reasons Why Renting Lab Space is Better than Building New - Ganna Magazine Blog

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Few Reasons Why Renting Lab Space is Better than Building New

It is a fact that the lab business is booming these days. The growth you are experiencing in the industry is due to many factors, including product liability concerns, technological advancements, and improvements in the medical field. Statistics show that in 2015 alone, the lab testing service industry generated more than $17 billion in revenue. The industry showed and overall growth of 2.2% in the short span of five years. Thousands of companies are currently in operation, and many new businesses are joining the race. You can do the same just by renting lab space and equipping it properly.

There are so many reasons why it makes great sense to rent a lab space. Most people try this option to reduce upfront costs. You will obviously require a lot more money to have your business set up in your own building. You will have to spend money to purchase land, hire a design team, and then pay the contractor to get your office space constructed. Not only it will take a lot of time, it will take a lot of money as well.

Some people think they can buy already existing labs and start their business, but even that is not as cost-effective as renting a lab space. The reason is that you may have to spend a lot of money to buy and then renovate an existing lab space. It is true that even when you decide to lease a lab space, you will still have to deal with some initial costs, but that is nothing compared to building a new space. You can work with your landlord and agree on monthly lease payments that are easier for you to manage. This way, you can invest your money on equipment and other important stuff. It is worth pointing out that you can also consider leasing lab equipment if you want. Again, this will significantly lower your upfront costs and make it easier for you to get things rolling in a short time.

Now, you may have gathered the idea that renting your lab space is usually a better choice, but you should be very careful when using this option. To make this idea work, you should pay special attention to select the right location first. Location will always be an important factor for labs. From easy access for clients to licensing, the location of your lab space can have a direct impact on your profitability. It is always a good idea to select a location with a number of hospitals, manufacturers, and universities in close proximity of your lab. The location should be secure too. Ensure that your lab has enough space for employees and equipment.

The fact of the matter is that leasing a lab space is usually a better choice as compared to building new. Just take your time when making a choice and ensure that your landlord allows you to alter the space as you expand your business and have new equipment installed in your space.
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