The life sciences industry is a vast and dynamic field focused on improving human and environmental health through scientific innovation. It covers a wide range of disciplines and business activities, including pharmacy, biotechnology, medical technology, clinical research and the manufacture of medical equipment and medicines. For over a decade, it has been one of the most innovative and strategic segments of the economies of the European Union countries. Its development remains linked to scientific and regulatory advances, as well as to increasing public health safety requirements, particularly in the European Union. Despite the enormous scientific advances and the automation of numerous processes, and even the involvement of artificial intelligence, the life sciences industry cannot be transferred to the virtual world. One of the factors determining the companies’ activities in this sector is access to specialised storage, research, production and clinical facilities.
According to analyses by CBRE, the global market for real property dedicated to life sciences is growing faster than other commercial segments, and Poland is gradually becoming an important player in the CEE region thanks to its research and development potential, as well as investments in pharmaceuticals and biotechnology[1]. The long-term success of projects in this sector is determined by the appropriate infrastructure and properly drafted agreements related to a property in which activities falling under the broad definition of a life science lease are carried out. Such agreements must in particular regulate the technical parameters of the properties themselves in much greater detail than in the case of “traditional” properties, as well as the rules for the performance of the parties’ respective obligations regarding the construction process for specific facilities and their use.
“Life sciences properties”
Currently, two groups of life sciences facilities are most popular on the commercial property market: broadly defined warehouse and production facilities, and medical facilities and laboratories. The first group includes factories producing medicines, supplements and medical equipment, as well as warehouses where these products are stored. It is obvious that the distribution of medicines, supplements and medical equipment requires an efficient logistics system, the main component of which is specialised warehouses. Warehouses dedicated to storing this type of product must meet different technical requirements than those storing, e.g. clothing or household appliances. Facilities dedicated to the storage, repackaging and “light production” of pharmaceutical or medical materials must meet very precise technical conditions. These include controlled temperatures, air humidity, fire safety measures, quality control systems, emergency systems, and an emergency power supply. Their importance for the continuity of supply and patient safety means that lease agreements must contain detailed provisions on the parties’ liability as well as contractual penalties for a failure to meet such precisely defined parameters.
In addition to production facilities, research and development laboratories—known as wet labs and dry labs—as well as cleanrooms play a key role. Cleanrooms are classified according to ISO 14644, an international standard that specifies the cleanliness requirements for pollution-controlled environments. These facilities require above-standard technical installations, such as extensive BMS systems, customised HVAC solutions, an emergency power supply, increased ceiling load capacity, and vibration resistance. They must also ensure a high level of biological and chemical safety. All this translates into the need to strictly regulate the technical requirements in the contract for the construction of a facility for a life sciences entity. This can be either a built-to-own structure, well known in the commercial property market, or a built-to-suit lease.
Although still developing, the Polish market already offers numerous examples of facilities dedicated to life sciences projects. In terms of space available for rent, it is worth mentioning the Life Science Park in Krakow[2], run by the Jagiellonian Centre of Innovation, which offers flexible laboratory modules and incubators for start-ups. Selvita, operating as a tenant of laboratory modules at the Life Science Park, is an example of the dynamic growth of a biotechnology company given its access to specialised infrastructure.
Examples of highly specialised facilities owned by entities conducting activities in them include the Anpharm-Servier plant in Warsaw[3] and the Polpharma plants in Starogard Gdański[4] and Sieradz. The Anpharm-Servier production plant in Warsaw has GMP-certified medicine production lines and quality control laboratories. Polpharma, operating in numerous locations in Poland, is developing not only its production but also its research and development infrastructure.
What does a lease in the life sciences industry cover?
The second group separated for the purpose of this article includes medical facilities such as clinics, including outpatient clinics and ambulatory care units. These facilities are most often located on the basis of lease agreements in buildings intended for commercial purposes, and often for office use. Unlike office or retail lease agreements, lease agreements for the life sciences sector must include a number of additional provisions. They should not only address the technical parameters of the leased property, but also need to take into account the principles of co-functioning with the other tenants or users of the commercial building. Detailed regulations will be required, among other things, for: rules governing patient movement in common areas, building safety issues, dedicated patient access routes (separate lifts or entrances “from the street”), additional sanitary procedures, and hazardous waste management. An additional element specific to this type of lease agreement is the regulation of the installation of specialised equipment and machinery in the leased property, which often requires the reinforcement of ceilings and load-bearing walls or the installation of additional radiation-blocking devices. Regulating this issue is important not only in terms of the rules and possibilities for carrying out fit-out work on the leased property, but also in terms of regulating the ownership rights to individual items of equipment in the leased property and the tenant’s obligations to remove the equipment after the lease expires. Hybrid facilities and incubators offering short-term licences for the use of laboratory modules, known as all-inclusive lab suites, also play a special role. Such solutions allow young biotech companies the flexibility to grow their business without the high expense of building their own infrastructure.
Regulatory thicket
Operations in life sciences facilities are highly regulated by public law and industry standards, which are often directly incorporated into lease agreements. Of key importance here are the GMP guidelines, detailed regulations specifying requirements for cleanliness, production conditions and quality control of medicines, which are regulated by EU law, as well as ISO 14644 standards governing the classification of cleanrooms and EN 14175 standards for fume cupboards. Furthermore, regulations such as Directive 2000/54/EC on the protection of workers exposed to biological agents and Directive 2010/63/EU relating to the use of animals for scientific purposes are also involved. In addition, the REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and CLP (Classification, Labelling and Packaging of Substances and Mixtures) Regulations apply. In Poland, the Waste Act of 14 December 2012 and the integrated BDO system, which impose waste management obligations on tenants, as well as the ADR regime for the transport of hazardous materials, play an important role. Another key element is insurance: in addition to the standard liability or property policies, on both the tenant’s and landlord’s side it is worth considering environmental damage and pollution cover.
This means that, in practice, many of the technical parameters of the leased property and the parties’ obligations are determined by law and must be explicitly included in the contractual documentation.
Are life sciences facilities cost-effective?
In the life sciences market, long-term agreements are most common, which is a natural consequence of the high capital expenditure incurred in the adaptation and fit-out of facilities. Build-to-suit agreements, where a building is designed and tailored to the needs of a specific tenant, are also popular. In such situations, the lease term is longer and usually covers several years, most often with an additional option for the tenant to extend it. Alongside this are short-term licences and so-called swing spaces, characteristic of incubators and accelerators. Compared to “classic lease agreements”, the life sciences industry allows for greater flexibility in terms of subletting rights, due to frequent changes in the ownership structure and the acquisition of investors. For the same reason, tenants also often negotiate hard on provisions concerning the right to transfer rights and obligations under the lease agreement to third parties. In the case of warehouse space agreements, tenants would like to have a say in the choice of business partner and limit the landlord’s rights to sell the leased property to entities that are their competitors. A common request from tenants is also a contractual right of first refusal (ROFO). The investor policy of some commercial property operators may result in the rejection of such a seemingly reasonable request from a tenant. In this regard, negotiations between the parties should be conducted with caution in order to address the legitimate interests of both parties while ensuring that the property owner is able to sell the property smoothly. Life sciences facilities are of strategic importance to an innovative economy and represent a valuable addition to a commercial property portfolio, usually having a very positive impact on its value growth.
ESG clauses in lease agreements are now standard practice in the market. They impose obligations on tenants to reduce the energy consumption of properties, implement heat recovery systems and report energy consumption indicators. Landlords also set similar goals for themselves during the construction or operation of a property. While such requirements increase the short-term costs of a given investment, according to experts they result in long-term savings. Undoubtedly, buildings that meet high low-carbon standards receive much better valuations and are likely to be awarded widely recognised certificates (such as BREEAM, LEED or WELL) confirming their market attractiveness to both tenants and potential buyers.
How to prepare?
We advise our clients to prepare thoroughly before signing a lease agreement for life sciences facilities. It would be best to commence discussions with a potential landlord only after preparing an internal analysis of plans for the facility, automation parameters, location, and the requirements of the logistics and production departments. Only then can a tenant realistically assess the attractiveness of financial offers presented by landlords based on, e.g. the tenant’s general technical requirements. Once the parties have preliminarily agreed on the boundary conditions of the investment, the next stage should be a period of intensive cooperation between the project teams and lawyers aimed at agreeing on the above-described technical and legal parameters of the facility.
In the case of existing facilities, it may be worth considering a limited technical due diligence review to determine whether the building has the appropriate infrastructure to install the systems required by the tenant. In regulatory terms, it is necessary to check whether the location and purpose of the facility comply with the requirements for the use of the property in local plans or for the storage of hazardous substances (ADR). Operational aspects are also important, such as transport services for the investment project, ensuring the possibility of scaling up operations and of using incubators or temporary spaces.
Summary
The development of the life sciences industry in Poland is driving demand for specialised facilities with a high level of technical and legal detail. Lease agreements for these facilities must be drafted with exceptional precision, both in terms of technical parameters and obligations under EU and national laws. For investors and developers, this presents a challenge but also an opportunity—life sciences facilities establish long-term partnerships that often lead to further joint projects. Properly addressing technical and regulatory requirements in the agreement is therefore a key to success for both landlords and tenants operating in this demanding and rapidly growing sector.
Article co-authored by Maria Targosz-Gajewska
[1] https://www.paih.gov.pl/wp-content/uploads/2025/05/The-life-science-sector-in-Poland-2025.pdf
[2] https://www.jagiellonskiecentruminnowacji.pl/life-science-park/
[4] https://polpharma.pl/nasze-zaklady/zaklady-farmaceutyczne-polpharma-sa-starogard-gdanski/
