Incubator leases for start-up companies

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By Paul Lawrence and Rhian Howells

Incubators are not often commonly associated with corporates or business enterprises, yet young companies can benefit greatly from a period of ‘incubation’. Often referred to as ‘business incubators’ or ‘innovation centres’ (or commonly ‘techniums’ in Wales), these are specialised spaces designed for the needs of young science and tech start-up companies (and are generally distinct from science parks, which tend to accommodate more established companies).

Experience of supporting small companies from their initial demand for space through to the management of their property portfolios as their businesses grow, particularly in respect of negotiating incubator leases, shows that there are a number of key considerations that tenants and landlords alike will need to be aware of in order to maximise the value from their property. These considerations are discussed in more detail below.

In order for a young start-up company as tenant to benefit fully from ‘incubation’, the space that they are looking to acquire will need to provide…

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