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ORANGE COUNTY, CA-Venture-capital funding here is largely focused on the Airport Area submarket, according to a fourth-quarter 2012 study by Jones Lang LaSalle. The firm has also concluded that venture-capital activity in this market in many ways parallels what is happening in the commercial real estate market: the funding is diverse in terms of which industries are most active.
JLL reports that Orange County has historically leaned on its entrepreneurial spirit for economic prosperity. As such, the volume and distribution of venture-capital funding will be a key indicator to watch throughout this phase of the market’s recovery.
“The industry breakdown of Orange County firms raising venture capital is an interesting parallel to that of the current composition of the commercial property market,” Jeff Ingham, senior managing director of JLL, tells GlobeSt.com. “Over the past two to three years, the most active tenants in the market have come from the medical-device, technology and health-services sectors. These industries accounted for nearly all of Orange County’s venture-capital funding in the fourth quarter of 2012, with a substantial portion of the funding going to medical-related firms.”
Ingham adds that from a leasing perspective, most of the largest occupancy requirements landed in the past year. “However, continued funding is a promising sign that these industries will continue to drive the local economy and commercial real estate market in 2013, particularly in and around the Airport Area submarket.”
As GlobeSt.com had reported in January, many finance companies, including Greenlight Financial and CashCall, are taking additional space in Orange County, and at that time Ingham said he was cautiously optimistic. “We also have life-science jobs, and I still see a lot of that job growth. The employment base is medical-device oriented, and I thank that’s going to continue to grow.”
What venture-capital trends are you noticing in your area? Tell us in the comment box below.