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GlobeSt.com: How do you see the concentration of employment industries shifting moving forward?

Ingham: With a growing number of STEM degree graduates living in Orange County, we expect technical-based industries to continue to lead economic expansion. With the local tech landscape expanding and the strong interest in technology of Millennials and Generation Z, a complete tech ecosystem is here to support this growth.

GlobeSt.com: As these industries have diversified, how have the office, multifamily and retail markets adapted?

Ingham: A more-diversified economy positively impacts the commercial real estate market. Prior to the recession, the Orange County economy was heavily influenced by financial services companies, most notably, mortgage firms. With much dependence on job growth from this industry, demand for office space was led by this segment of the economy leading up to the recession. With the current local economy more diversified, demand for space is coming from a wide spectrum of industries, including healthcare, life sciences, technology and companies that provide business services to firms from these sectors.

The growing employment base in Orange County has brought increased demand for multifamily development, especially in areas that are located near office hubs. In the Airport Area alone, there are nearly 3,000 units currently under construction with another 5,700 units approved for development. With the rising popularity of holding off purchasing homes for first-time buyers and with more people looking to reduce daily commutes, the additional multifamily supply is providing necessary housing options.

The retail market continues to evolve as consumer shopping preferences change. However, more and more office tenants prefer to be located near retail amenities, including restaurants, grocery stores, pharmacies, and service-oriented shops. Employees can take advantage of these amenities during lunch and on their way home. Several retailers are targeting space located near office hubs, while office tenants prefer to be located near retail amenities, which demonstrates a synergistic relationship.

GlobeSt.com: What else should our readers know about Orange County's employment industries?

Ingham: According to the California EDD, the professional-and-business-services cluster in Orange County has grown 9.8% over the last 10 years to a total of 300,100; this is the largest office-using sector in Orange County. Additionally, the educational-and-health-services segment has expanded by an incredible 38.1% to 206,400. The diversification of the Orange County workforce not only provides advantageous conditions for the commercial real estate market, but also for the economy as a whole.

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IRVINE, CA— The healthcare and life-sciences industries have been expanding their presence in Orange County, creating a more diversified economy that positively impacts the real estate market, JLL senior managing director Jeff Ingham tells GlobeSt.com. According to the firm, in 2007, the Orange County economy was heavily influenced by the financial-activities sector—specifically, the mortgage industry, but current economic growth is being led by a diverse set of industries including healthcare, technology, life sciences and business services.

We spoke with Ingham about the Orange County market's employment-industry growth and how he sees this changing moving forward.

GlobeSt.com: Which employment industries are impacting the Orange County commercial real estate leasing market?

Ingham: The healthcare and life sciences industries have been expanding their presence in Orange County. The primary driver for Orange County is that it provides the intersection of healthcare, life science and technology. These industries are related to each other since healthcare providers utilize products and systems developed by life-sciences firms and Orange County is a hub for technology workers. The synergy between these two industries has provided favorable conditions for both sectors to experience growth in Orange County.