JLL recently released its Life Sciences Outlook. GlobeSt.com recently chatted with West Coast experts to learn a little more about what unique attributes makes their market attractive to life sciences firms. For the interview, we spoke with Shawn Stiles, JLL EVP in Los Angeles; Grant Schoneman, JLL SVP in San Diego; Mike Deatly, JLL VP in Denver; Christan Basconcillo, JLL Research Manager in the San Francisco Bay Area; and David Cantwell, JLL EVP in Orange County, CA.

GlobeSt.com: What unique attributes makes your market attractive to life sciences firm?

Deatly: Denver benefits from low barriers to entry compared to more traditional hotbeds; emphasis on improving public policy around attracting and rewarding industry growth; and a talent pool that is innovative, entrepreneurial in spirit and well-educated who are attracted to the Colorado lifestyle

Stiles: One unique attribute about the Los Angeles Life Science market is that there are over 25 research institutes, universities and colleges in the region that conduct research and train future generations of scientists and entrepreneurs. This is a huge advantage to the life science industry for two reasons. First, 31% of all U.S. patents come from the Los Angeles/Orange County Life Science cluster, representing a major opportunity. However, these patents and the private sector need to partner better in order to commercialize more of that research locally. Second, these universities and research institutes train many bright young people in the life science field which are great employment prospects for local life science companies. Lastly, Los Angeles has a very attractive life-style (amenities, housing, weather, beach, sports and entertainment venues, etc.) which are important in attracting top talent.

Schoneman: A unique attribute of the San Diego biotech market is the breadth of talent and entrepreneurism, combined with a uniquely collaborative environment. This is what makes San Diego such a strong area for biotechnology companies (both large and small), research institutes and large pharmaceuticals. Another key attribute for the San Diego marketplace is the presence of the nation's largest life science landlords (Alexandria, Biomed and HCP) and their ability to fund “turn-key” tenant improvements in spaces. For a young biotech company, having the opportunity to sign a lease where the landlord provides the capital needed to improve the space is a key factor to them locating operations in the San Diego biotech cluster. These younger companies want to utilize their existing funds towards R&D uses and not towards improving the facility they occupy. Alexandria, Biomed Realty and HCP all have large real estate holdings here in San Diego and are actively investing further resources into the San Diego marketplace. Together, these three landlords control around 70% of the leasable lab space in San Diego and are looking at opportunities to continually bolster their local portfolios.

Basconcillo: Major Bay Area colleges such as Stanford, UC Berkeley, and UCSF have dedicated programs focused on the development of future life science professionals. Mission Bay is home to several life science incubators, many of which partner with UCSF and venture capital firms who invest primarily in the industry. Lawrence Berkeley Livemore Labs is also another major source of talent innovation, managed by UC Berkeley. The outflow of new graduates and the well established presence of major life science companies allow the Bay Area as a whole to attract the best and brightest scientists from around the world. When coupled with Silicon Valley's strong roots in modern day technology, firms have the ability to be located near companies (not just life science) who are constantly seeking next generation solutions for the future.

Cantwell: Orange County has a heavy concentration of human and financial resources available to life science companies. The already highly educated Orange County workforce continues to get stronger with an increasing number of residents holding STEM degrees. This provides a foundation for the local life sciences industry to continue to expand. Orange County offers a high quality of life while having lower real estate and operational costs than many other life sciences hubs making it a great market for firms to startup and grow.

In order to meet the needs and demands of the changing healthcare industry, real estate professionals need to adapt their strategies to new circumstances. Join us at RealShare Healthcare Real Estate on Dec. 7 and 8 for insights on succeeding in both the right markets and product types as well as navigating and finding opportunities in the more challenging ones. Learn more.

GlobeSt.com: What unique attributes makes your market attractive to life sciences firm?

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