Penn State College of Agricultural Sciences Breaks Ground on $65 Million Animal Diagnostic Laboratory Addition

The Pennsylvania State University College of Agricultural Sciences broke ground on a $65 million, 46,000-square-foot, two-story addition to its Animal Diagnostic Laboratory (ADL) in University Park, Pa., state officials announced.

Agriculture Secretary Russell Redding and Troy Ott, the Peter and Ann Tombros Dean of the College of Agricultural Sciences, participated in the groundbreaking. The project is the third expansion of Pennsylvania's veterinary laboratory system this year, according to the announcement.

Project Details: Animal Diagnostic Laboratory Addition at University Park

The ADL is located on Pastureview Road in University Park. The facility was constructed in 1956 and last extensively renovated in 1999. The existing building is approximately 25,800 square feet, meaning the 46,000-square-foot addition will nearly double its footprint.

The addition will increase laboratory capacity and provide modern diagnostic infrastructure, including new Biosafety Level Three (BSL-3) space. The BSL-3 designation applies to labs with enhanced safety protocols and design that enable testing associated with infectious diseases such as highly pathogenic avian influenza and African swine fever.

Penn State project documents indicate the addition will include approximately 16,000 square feet of laboratory space, compared with roughly 10,000 square feet in the existing facility, along with a necropsy laboratory and Biosafety Level 2 space.

The expansion also will connect the new and existing portions of the laboratory, creating a more cohesive and functional environment for faculty, diagnostic personnel and support staff. Improvements will address aging infrastructure while enhancing biosecurity, security, access and wayfinding. Additional space will allow the laboratory to accommodate future growth and evolving diagnostic needs.

Construction was expected to begin in October 2026, with completion anticipated in November 2028. At $65 million for 46,000 square feet, the project equates to roughly $1,413 per square foot.

Third Expansion of Pennsylvania's Veterinary Lab System in 2026

The ADL groundbreaking follows last week's groundbreaking on a $94 million, 63,000-square-foot veterinary diagnostic laboratory at the University of Pennsylvania School of Veterinary Medicine's New Bolton Center, and the May opening of the Keystone Animal Diagnostic Center (KADC) at Penn State's Beaver Campus, supported by a $6 million investment. Together, the three projects represent approximately $165 million in announced laboratory investment.

The projects fall under the Pennsylvania Animal Diagnostic Laboratory System (PADLS), which expanded earlier this year for the first time since the state established it in 1991, adding a fourth lab in Western Pennsylvania. The four-lab system comprises:

• The Pennsylvania Department of Agriculture's Pennsylvania Veterinary Laboratory in Harrisburg
• Penn State College of Agricultural Sciences' Animal Diagnostic Laboratory in University Park
• The Keystone Animal Diagnostic Center at Penn State's Beaver Campus
• The Veterinary Diagnostic Laboratory at the New Bolton Center at the University of Pennsylvania College of Veterinary Medicine

The system is a state-funded partnership intended to support and speed animal health and disease detection and prevention statewide. All four labs are members of the National Animal Health Laboratory Network, and PADLS holds the highest level of accreditation for animal health labs from the American Association of Veterinary Diagnosticians.

During the last state fiscal year, July 1, 2025 to June 30, 2026, PADLS labs tested 669,788 animal specimens, including tests for monitoring avian influenza, rabies, chronic wasting disease and equine herpesvirus.

Funding and Statements From Officials

The Penn State College of Agricultural Sciences, including the ADL and the new KADC, is state-supported, with nearly $65.4 million included in Gov. Josh Shapiro's 2026-27 budget.

"Supporting cutting-edge research, diagnostic testing, and agricultural education at our land-grant universities like Penn State is critical to our nation's economy, food security, and public safety. It is one of America's most important and enduring public policies," Redding said. "The investments the Shapiro Administration is making — not just today, but year-round — strengthen our capacity to detect and prevent disease, respond quickly in crisis, and protect and grow the industry that feeds our economy and our families."

"The Pennsylvania Animal Diagnostic Laboratory System is a critical resource for Pennsylvania agriculture and for protecting the health of animals, people and the environment," Ott said. "This project represents a long-term investment in the infrastructure needed to support our ADL's broad diagnostic mission and its role in advancing a One Health approach. We are grateful to the Pennsylvania Department of Agriculture for its significant investment in this project and its continued partnership in strengthening animal health and protecting Pennsylvania's agricultural economy."

Agricultural Economy and Budget Context

Pennsylvania has more than 48,800 farms contributing over $132 billion a year to the economy and supporting nearly 600,000 jobs, according to the announcement. The 2026-27 bipartisan budget signed by Shapiro fully funds PADLS and the Pennsylvania Animal Health and Diagnostic Commission, which oversees disease prevention efforts and coordinates response strategies.

The budget also maintains $10 million for the Agricultural Innovation Grant Program, which has awarded $19.7 million over two years to support 185 projects, and continues $13.8 million to fully fund the Pennsylvania Farm Bill. It increases the cap for capital development projects, including agricultural projects, in the Pennsylvania Industrial Development Authority (PIDA) program from $200,000 to potentially up to $2 million. It also sustains funding for the state's farmland preservation program, which protects 6,759 farms and 669,854 acres in 58 counties.

The project proceeds as Penn State's general Commonwealth appropriation has remained flat at $242.1 million for six consecutive years. Penn State planning materials also cite construction-cost increases of approximately 4% to 6%.

Market Implications

The ADL addition is a publicly funded development rather than a sale or lease transaction, so no purchase price, capitalization rate, loan amount or occupancy figure applies. Its per-square-foot cost reflects the specialized construction involved in laboratory and biosafety space. With the Penn Vet and KADC projects, the ADL expansion marks a shift from maintaining Pennsylvania's veterinary laboratory network to materially expanding it, with capacity added at both of the system's major university-linked facilities and a new location in Western Pennsylvania.

Sources

• Pennsylvania Department of Agriculture: Shapiro Admin Celebrates Groundbreaking on $65 M Vet Lab Addition at PSU