Los Angeles' STEM talent pool is growing, and it is fueling activity in the office market. According to a new report from JLL, the population of professionals with STEM degrees has increased since 2011, and salaries have increased as well. This segment of the work pool is fueling office market activity and rental rate growth. We sat down with Blake Searles, an EVP at JLL, to discuss the growth and the impact on the office market.

GlobeSt.com: The talent pool has increased significantly since 2011. What is driving the growth of STEM talent in L.A.?

Blake Searles: More than 1 million people over the age of 25 have a STEM degree in Southern California, up 17.0 percent over the last five years. Almost half of those people reside in Los Angeles County. Southern California also boasts more students enrolled in engineering programs than both Northern California and the greater New York metro area, keeping our supply of talent quite healthy. Top schools like CalTech, USC, and UCLA provide a steady and growing stream of STEM talent. Los Angeles has a long history in the defense and aerospace sectors, providing a solid foundation for traditional tech growth. Engineers, mathematicians, and computer scientists have always been in high demand in these industries and that same talent is also in high demand by firms developing new media platforms, new virtual or augmented reality technologies, or enhancing the way media is developed and consumed. Los Angeles provides the perfect industry balance and stream of talent to support steady growth in tech as a whole.

GlobeSt.com: How has it affected the office market?

Searles: The growing STEM talent pool is strongly correlated with the growth in new media platforms and the content creation frenzy. Tech and new media firms have is a strong preference toward creative spaces in more dynamic submarkets. A lot of the talent that tech and media companies seek is concentrated on the West Side and south along the coast. Many firms have a wish list that includes access to talent, access to cool office space with amenities nearby or onsite, and room to grow. It's tough to satisfy all three in today's market, but creative solutions are possible. This means that we're seeing rents hit all-time highs in highly coveted submarkets like Santa Monica, driving more tenant demand toward Culver City, Hollywood, and Playa Vista.

GlobeSt.com: What types of workspaces should we be creating and investing in for this talent pool?

Searles: High-density space is typically the preferred configuration for tech firms, but companies are looking to build more intentional space rather than build out fully open offices. Workplaces that foster innovation and creativity have a combination of focused work areas, meeting rooms, quiet spaces, eating, and gathering spaces. The generational differences and the job function diversity within a workforce should shape the workplace strategy, and that will differ depending on the firm. More landlords are investing in their lobbies and amenities, taking a cue from hotel operators. This enhances the overall tenant experience, no matter the industry, but for tech and creatives firms who tend to work outside the traditional 9-5, these extra amenities can make a difference.

GlobeSt.com: How does Los Angeles' pool of STEM graduates and opportunities for jobs compare to other major US markets?

Searles: Los Angeles is a top-5 market when it comes to STEM degree holders. The highly diverse economy here provides a variety of industries for STEM degree holders to dive into. We have the rich history in aerospace and defense, but the growth in new tech and media can draw even more talent to the region. All industries are adopting new technologies to remain competitive, and the disruption we've seen in transportation, media, finance, and healthcare will continue unabated to all industries. Our highly diverse economy will benefit from the techni-fying of all industries, and the STEM talent here will help support that growth locally.

GlobeSt.com: L.A. isn't a top market for STEM talent, according to the report. What can the market do to increase its STEM talent pool to be more competitive with other markets?

Searles: While the STEM talent pool isn't highly concentrated on a per capita basis here, STEM talent is quite large on an absolute basis. Nearly 450,000 residents in Los Angeles County have a STEM degree, and if you combine that with Orange County the figure rises to more than 660,000 people, the second highest in the nation after New York. But there's still much we can do to boost that number. First, organic tech industry growth from within the market will continue to push our talent numbers higher. Growth from outside firms will boost that even further, especially the overflow demand from Silicon Valley that's already been making an impact here.

Instant Insights /

STEM Graduates Elevate L.A.'s Office Market

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