Both investments in and demand for life sciences space are Rise in Los Angelesto further establish the sector as one of the fastest growing alternative asset classes after the pandemic.
CBREThe latest national life sciences report shows growing developer interest in Los Angeles. For example, CoStar reports this week that BEP helix, led by biotech investor Ben Pouladian, will buy the lease shares on the 280,000 square meter property Park DTLA Office building and will convert it into a life sciences campus. And last month that University of Southern California agreed to pay $ 57 million for a 75,272 square meter life sciences building on Health Sciences Campus east of downtown LA
LA is also seeing an influx of venture capital investments. CBRE rated LA at $ 350 million in the third quarter of 2021 (the three largest markets Received 70 percent of all venture capital funding.) And beyond National Health Institute Funding and local STEM talent resulted in increased demand for lab and R&D development in LA.
The region is currently the ninth largest employment center in the life sciences sector with 46,000 jobs in this segment in 2020. That’s 69,000 in San Diego and 129,000 in San Francisco. There are currently three properties under construction in the area, including a mixed-use remodel and an under construction project in the San Fernando Valley at 18422 Oxnard Street. And in West LA HATCHspaces reunited with NexCore group for a 100,000 square meter wet laboratory and office building.
CBRE also reported that leasing volumes in the greater LA area continue to rise as more businesses seek to expand, and that increased interest has resulted in one of the fastest growing new real estate companies: Lab Coworking. LabLaunch, BioLabs and HATCHspaces all have facilities at life science centers in the greater LA area
“Founders have the confidence that they can build a life science company in LA,” says CBRE Andrew Riley said. “The city has caught the interest of the real estate development and venture capital community. Not to mention the talent continues to improve and is ripe for harvest. We even see overseas companies exploring the leasing options available in the LA market – definitely a great sign. ”
Gregory Cornfield can be contacted at [email protected].
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