University Enterprise Laboratories (UEL) is investing $23 million to expand its office and lab space for bio companies, the Minneapolis-St. Paul Business Journal reports. UEL plans to add nearly 41,000 square feet to an existing building in St. Paul that currently measures 125,000 square feet.

Two years ago UEL outsourced its leasing and management operations, laying off its entire staff. Now its building has no vacancies, and the company expects a high demand for its space.

"We have seen an increasing amount of biotech start-up activity," said Paul Knapp, UEL board chairperson. "The building is full, we have a long list of happy tenants. We're now looking to the future and trying to find ways to further our mission."

UEL expects most of the project's funding to come from private sources.