Agenda - 03-13-2012 - 4b - Laserfiche WebLink

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22 In the third phase, the PI met with experts on the space needs of LTNC-CH affiliated companies. Of the 19 people interviewed, 9 were at UNGCH and the other 10 worked in the Triangle area in various capacities. The discussions served to corroborate findings, gather new information and reality test recommendations. A listing of experts with their affiliation is provided in Appendix C. The PI appreciates their contributions to this report but is fully responsible for its content. The PI conducted interviews or received written responses from over 50 individuals in all. In the final phase, the PI synthesized findings from previous stages to generate this report. He also gathered additional information on entrepreneurial activities at NCSU, at American Tobacco Underground and in downtown Durham and Raleigh. He wants to recognize feedback provided by Maryann Feldman, Nichola Lowe and Jesse White. Findings from Interviews with Principals The independent companies are primarily in the areas of life science or information technology. The life-science companies are in biotechnology, pharmaceuticals or medical devices. The IT companies focus on hardware, computer services or software (business intelligence, analytics, cloud computing, gaming/simulation, computer graphics, etc.). Several clean technology/alternative energy/advanced materials companies and business service companies were also surveyed. The life-science companies need a combination of (wet) lab space and office space in the same building. When funding becomes available, having up to 4,000 SF with 60-70% office space and the rest as lab space is the norm. Most companies have paid $10-15/SF/year plus utilities. Lease terms tend to be three years or less with renewals available. If the company grows, the principals seek space in the 10-20,000 SF range at rents below $20/SF/year. Lease terms are three years or longer. Rent per square foot often does not increase much since rents for smaller spaces are more than rents for larger spaces on a square-foot basis. Several biotech startups were satisfied with the incubator space they occupied in Durham or RTP. The First Flight Venture Center has 16,000 SF of office and lab space for up to 25 companies. The space is flexible and affordable but has inadequate plumbing and no HVAC after hours. NCSU's Centennial campus offers excellent space, but the space is far too expensive for most startups. The Hamner Institute selected one of the companies which is currently in their RTP accelerator facility. Alexandria Real Estate Equities' facility on Kit Creek Road serves several others. The Leggett & Meyers building across from Brightleaf Square provided cheap, bare-bones space for several companies in the 1990s. Office space with specialized features and flex space is the most useful type of space for life- science companies that are growing. Several companies occupying flex space had taken on another bay in the same building or had taken advantage of ceiling height to create mezzanine 19