JLL recently released its Life Sciences Outlook and GlobeSt.com checked in with multiple west coast markets on that they will be the driving forces to life science growth in their market in the coming years. We chatted with Shawn Stiles, JLL EVP in Los Angeles; Grant Schoneman, JLL SVP in San Diego; Mike Deatley, 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 will be the driving forces to life science growth in your market in the coming years?
Schoneman: The driving forces in the San Diego life science market will be continued growth of the local genomics sector. Growth from companies like Illumina and Human Longevity, in addition to new genomics startup companies, will continue to drive growth in the coming years. UCSD will also be a large growth driver. The university secured more than $1 billion in R&D funding over the past 12 months and will continue to produce highly educated scientists that will develop new technologies and form new startup companies.
Stiles: In Los Angeles, the driving forces behind growth in the Life Science market will be the growth of our local biotech and life science companies and their ability to find suitable lab space. Because Los Angeles does not have big Pharma, our market depends on growth from the large biotech firms such as Amgen, Baxter, Mannkind and in particularly on the growth of our many early stage life science firms. These firms will continue to grow, but their ability to find suitable lab space will be critical. With a vacancy of 2.9%, it is very difficult to find existing lab space and building it is quite expensive.
Deatley: Currently, Colorado benefits from our “second tier” city status. We've not long garnered national attention and the barriers to entry reflect that. It is infinitely more affordable to start and run a business in Colorado than it is in first tier cities. A well-known life sciences firm, currently moving from Southern California to Golden, has also stated that they value the quality of life they can offer their employees by moving to Colorado—a state that places heavy emphasis on work/life balance. Most employers find a much happier and productive labor pool here.
Basconcillo: A favorable venture capital funding environment has been contributing to the growth of life science startups nurturing a future innovation pipeline and talent pool. Agile startups who are using technology to produce the next generation of biotech/life science products become attractive acquisition targets for larger firms looking to remain competitive. Additionally, the Bay Area is home to some of the most reputable life science companies in the world, including Genentech, Roche, Astrazeneca, Amgen, and Merck. Google's step towards medical devices and life science (Verily and Calico) has warranted a lot of attention as well. This is a company who revolutionized internet search and is now becoming a major player in life science and biotech by using their roots in technology.
Cantwell: The key to the growth of the Orange County life sciences market is demographics and a virtually limitless demand for health through device and pharmaceuticals. VC funding and traditional investor activity will be a focal point as life sciences firms work to remain ahead of the curve of the heavy demand brought on by the healthcare sector.
Click here to read why the west coast benefits from having multiple life science hubs.
JLL recently released its Life Sciences Outlook and GlobeSt.com checked in with multiple west coast markets on that they will be the driving forces to life science growth in their market in the coming years. We chatted with Shawn Stiles, JLL EVP in Los Angeles; Grant Schoneman, JLL SVP in San Diego; Mike Deatley, 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 will be the driving forces to life science growth in your market in the coming years?
Schoneman: The driving forces in the San Diego life science market will be continued growth of the local genomics sector. Growth from companies like Illumina and Human Longevity, in addition to new genomics startup companies, will continue to drive growth in the coming years. UCSD will also be a large growth driver. The university secured more than $1 billion in R&D funding over the past 12 months and will continue to produce highly educated scientists that will develop new technologies and form new startup companies.
Stiles: In Los Angeles, the driving forces behind growth in the Life Science market will be the growth of our local biotech and life science companies and their ability to find suitable lab space. Because Los Angeles does not have big Pharma, our market depends on growth from the large biotech firms such as Amgen, Baxter, Mannkind and in particularly on the growth of our many early stage life science firms. These firms will continue to grow, but their ability to find suitable lab space will be critical. With a vacancy of 2.9%, it is very difficult to find existing lab space and building it is quite expensive.
Deatley: Currently, Colorado benefits from our “second tier” city status. We've not long garnered national attention and the barriers to entry reflect that. It is infinitely more affordable to start and run a business in Colorado than it is in first tier cities. A well-known life sciences firm, currently moving from Southern California to Golden, has also stated that they value the quality of life they can offer their employees by moving to Colorado—a state that places heavy emphasis on work/life balance. Most employers find a much happier and productive labor pool here.
Basconcillo: A favorable venture capital funding environment has been contributing to the growth of life science startups nurturing a future innovation pipeline and talent pool. Agile startups who are using technology to produce the next generation of biotech/life science products become attractive acquisition targets for larger firms looking to remain competitive. Additionally, the Bay Area is home to some of the most reputable life science companies in the world, including Genentech, Roche, Astrazeneca, Amgen, and Merck.
Cantwell: The key to the growth of the Orange County life sciences market is demographics and a virtually limitless demand for health through device and pharmaceuticals. VC funding and traditional investor activity will be a focal point as life sciences firms work to remain ahead of the curve of the heavy demand brought on by the healthcare sector.
Click here to read why the west coast benefits from having multiple life science hubs.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
