IRVINE, CA—With more than 25 research institutes, universities and colleges in the region that conduct research and train future generations of scientists and entrepreneurs, Orange County is the ideal spot for life-sciences growth, Jason Lantgen, VP and a member of the Southern California life-science practice group for JLL, tells GlobeSt.com. The company recently released a life-sciences report for the Orange County market that revealed life sciences continues to be a strong fixture in this region's CRE market. We spoke exclusively with Lantgen about the life-sciences sector in Orange County and how it is changing s start-ups begin to grow and take hold in this market.
GlobeSt.com: What are the drivers for the life-sciences sector in Orange County?
Lantgen: Southern California is one of the leading life-science sectors in the country. There are more than 25 research institutes, universities and colleges in the region that conduct research and train future generations of scientists and entrepreneurs. This, coupled with eh prevalence of leading biopharma, generations of biopharma, medtech, etc., companies in the area, positions this cluster as a major industry player. Orange County became a hotbed for the life-science industry initially in the 1950s when Allergan, Beckman Coulter and Edwards Lifesciences founded their operations in the Airport Area. The county has now attracted more than 1,100 life-science companies, and the industry in cumulative employs more than 115,000 people.
GlobeSt.com: What trends do you see emerging in life-sciences real estate in Orange County?
Lantgen: Similar to the trends we are seeing in the traditional office market is the impact the new generations have had in the workspace. To foster an innovative environment, life-sciences firms are modifying traditional lab configurations to provide more options for teamwork and collaboration. Access to amenities to improve day-to-day well-being is also considered.
GlobeSt.com: How will this sector change as many start-ups begin to grow and take hold in this market?
Lantgen: Orange County has been able to get by with cheaper costs for office space and cheaper costs in the fight for top-tier labor. Our labor analytics show highly skilled workers can be retained in OC for about 10% to 15% less than they are in San Diego and Los Angeles. As these start-ups begin to grow and take hold in this market, those are going to be the two things that will pick up. OC only has 3.7 million square feet in lab space, and vacancy is around 5.9% of the market. This is well below the overall market and will only get more supply constrained unless something is done.
GlobeSt.com: Are there any new geographical areas in the county where life sciences is expanding or could expand?
Lantgen: The market tends to be split between the Airport Area and South County. In one square mile of the Airport Area, you have Abbott, Pfizer, Baxter and Edwards—more longstanding, traditional life-science firms—which employ more than 4,500 people. In South County, there is a high number of life-science operations located in Lake Forest, Aliso Viejo and the Irvine Spectrum. This is due to the proximity to major medical-device manufacturers, UCI and the new Chapman Health Science Campus.
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