Types of Biotechnology and Their Real Estate Needs

Biotechnology is one of the fastest-growing industries in the United States, shaping everything from medicine to agriculture. But while science gets the spotlight, there’s another critical factor fueling biotech innovation: real estate.

Understanding the types of biotechnology not only helps investors and professionals see where the industry is headed, but also explains why specialized facilities are essential for growth.

What Is Biotechnology?

At its core, biotechnology is the use of biological systems, organisms, or processes to develop products and technologies that improve human life. From vaccines to genetically modified crops, the industry has transformed modern living.

But biotech can’t thrive without the right physical infrastructure. Each branch of the industry requires highly specialized real estate — lab space, clean rooms, R&D hubs, and proximity to talent and funding ecosystems.

The Four Primary Types of Biotechnology

1. Medical Biotechnology

Medical biotechnology focuses on developing drugs, therapies, and diagnostics. It has played a central role in everything from cancer treatments to COVID-19 vaccines.

Real estate needs:

• Wet labs with advanced ventilation and waste management systems
• Clinical research facilities close to hospitals or universities
• Flexible office + lab layouts for research teams

With the U.S. biotech industry employing over 2.1 million people as of 2022 (source: Statista), demand for medical biotechnology facilities is consistently high, especially in hubs like the Bay Area, Boston, and San Diego.

2. Agricultural Biotechnology

Agricultural biotechnology applies science to improve crops, livestock, and sustainability. Think genetically engineered plants that resist pests or bio-based fertilizers.

Real estate needs:

• Greenhouse or indoor farming spaces for crop trials
• Land with specific zoning allowances for agricultural research
• Storage and distribution facilities for large-scale testing

While agricultural biotech is less concentrated in urban hubs, it relies heavily on flexible R&D sites that balance lab space with access to agricultural land.

3. Industrial Biotechnology

Industrial biotechnology — sometimes called “white biotechnology” — uses microbes and enzymes to create products like biofuels, bioplastics, and chemicals.

Real estate needs:

• Pilot plants and manufacturing facilities with heavy power and water capacity
• Locations near ports or distribution hubs
• Larger footprints for scale-up operations

As the clean energy economy grows, industrial biotech has become a driver of real estate demand in secondary markets where space is more affordable.

4. Environmental Biotechnology

Environmental biotechnology develops solutions for pollution control, waste management, and ecosystem restoration. Examples include bio-remediation of contaminated soil or wastewater treatment.

Real estate needs:

• Lab space integrated with environmental testing sites
  Facilities designed for water or soil analysis
• Locations near natural resource centers or industrial zones

This sector often requires collaboration with municipalities and environmental agencies, which makes real estate selection more complex but also more impactful.

Why Real Estate Matters in Biotechnology

Each type of biotechnology requires unique real estate solutions — and one-size-fits-all space doesn’t work. The wrong facility can slow research, limit funding opportunities, and put compliance at risk.

For investors and landlords, understanding these nuances is critical. For biotech startups and established companies, securing space that’s adaptable to growth is often the difference between scaling successfully or stalling.

At IPG, we specialize in connecting biotech companies with the spaces they need to innovate, grow, and bring life-changing ideas to market.

Conclusion

The types of biotechnology — medical, agricultural, industrial, and environmental — all play different roles in shaping the future. But they share one common denominator: the need for purpose-built real estate.

From wet labs in San Francisco to agricultural testing sites in the Midwest, biotech innovation relies on the right space as much as the right science. For companies entering or expanding in this dynamic industry, real estate isn’t just an operational detail — it’s a strategic advantage.