ORANGE COUNTY, CA—Both vibrant markets, Orange County and San Diego are each unique in its life-sciences sectors, focusing on different types of users in different concentrations, JLL EVP David Cantwell tells GlobeSt.com. We recently reported on the perennial strength of the San Diego life-sciences sector; here's a closer look at Orange County's.
According to a recent report from the firm, with the life sciences industry growing at a swift pace in Orange County, competition to lease or purchase lab space should remain strong, particularly with the lack of new construction in the market. As of Q2, $319,741,300 of venture capital funding has been invested in Orange County life-sciences firms over the last 12 months, according to PwC MoneyTree. Alphaeon ($80,061,100), AxonicsModulation Technologies ($38,513,300), Reshape Medical ($38,000,200) and Sonendo ($33,266,000) are leading the way in closed investment rounds.
Asking rents for Orange County emerging lab space is up 10% year-over-year.
The report also reveals that the Orange County economy is becoming more diversified, and life sciences has been one of the leading industries contributing to this diversification. As demand for services provided by firms from this sector grows, the local economy and commercial real estate market are expected to continue to feel the positive impact from the industry growth.
We spoke exclusively with Cantwell about the differences between the San Diego and Orange County life-sciences sectors and what the future holds for Orange County.
GlobeSt.com: How does the OC life-sciences market compete with San Diego, which is such a strong market for this type of space?
Cantwell: San Diego is an R&D market fed by UCSD. OC is more of a device-development and -manufacturing market. While each market has some of both, the high concentration of employees/occupiers is for R&D in San Diego and manufacturing in Orange County.
GlobeSt.com: What does the OC life-sciences market have that distinguishes it from other SoCal markets?
Cantwell: The Orange County life-sciences market is characterized by a highly skilled device-manufacturing labor force.
GlobeSt.com: What does the future hold for this sector in Orange County?
Cantwell: Despite some recent acquisitions that could result in loss of Orange County employment, the labor base here is so strong that it's an attractive place to set up shop and expand.
GlobeSt.com: What else should our readers take away from this report?
Cantwell: Orange County has established a “critical mass” of skilled labor that will continue to attract new and existing companies to locate and expand here.
ORANGE COUNTY, CA—Both vibrant markets, Orange County and San Diego are each unique in its life-sciences sectors, focusing on different types of users in different concentrations, JLL EVP David Cantwell tells GlobeSt.com. We recently reported on the perennial strength of the San Diego life-sciences sector; here's a closer look at Orange County's.
According to a recent report from the firm, with the life sciences industry growing at a swift pace in Orange County, competition to lease or purchase lab space should remain strong, particularly with the lack of new construction in the market. As of Q2, $319,741,300 of venture capital funding has been invested in Orange County life-sciences firms over the last 12 months, according to PwC MoneyTree. Alphaeon ($80,061,100), AxonicsModulation Technologies ($38,513,300), Reshape Medical ($38,000,200) and Sonendo ($33,266,000) are leading the way in closed investment rounds.
Asking rents for Orange County emerging lab space is up 10% year-over-year.
The report also reveals that the Orange County economy is becoming more diversified, and life sciences has been one of the leading industries contributing to this diversification. As demand for services provided by firms from this sector grows, the local economy and commercial real estate market are expected to continue to feel the positive impact from the industry growth.
We spoke exclusively with Cantwell about the differences between the San Diego and Orange County life-sciences sectors and what the future holds for Orange County.
GlobeSt.com: How does the OC life-sciences market compete with San Diego, which is such a strong market for this type of space?
Cantwell: San Diego is an R&D market fed by UCSD. OC is more of a device-development and -manufacturing market. While each market has some of both, the high concentration of employees/occupiers is for R&D in San Diego and manufacturing in Orange County.
GlobeSt.com: What does the OC life-sciences market have that distinguishes it from other SoCal markets?
Cantwell: The Orange County life-sciences market is characterized by a highly skilled device-manufacturing labor force.
GlobeSt.com: What does the future hold for this sector in Orange County?
Cantwell: Despite some recent acquisitions that could result in loss of Orange County employment, the labor base here is so strong that it's an attractive place to set up shop and expand.
GlobeSt.com: What else should our readers take away from this report?
Cantwell: Orange County has established a “critical mass” of skilled labor that will continue to attract new and existing companies to locate and expand here.
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