The industry of the life sciences in California — San Diego specifically — is growing exponentially. As a result, capital has been pouring into this market, and employment in this sector is up. This phenomenon is driving the demand for properties offering commercial leases — a Southern California trend that may have a major impact on Los Angeles in the near future.
In 2018’s first quarter, venture capitalists poured more than $547 into more than 30 startups in the San Diego area. This is around 4 percent higher than the previous year. A large percentage of the venture capital went toward the life sciences.
In fact, health care companies and biotech businesses represented seven in 10 regional deals during this time period. That is essentially 66 percent of the deals, valued at over $360 million. Big pharmaceutical companies are also moving into this area. As a result of all of this, employment in the life science field in San Diego County surpassed that of Orange County recently — the first time this has happened. Nearly 50,000 people have life science positions in the San Diego area.
This may provide hope for those in Los Angeles who would like to see the area’s own life science industry develop, too, in the months and years ahead. These include real estate investors, who may be interested in purchasing specialized properties featuring commercial leases and leasing out their properties to biotech and health care businesses. Of course, navigating any commercial real estate can be tricky, particularly for those who have never done this before. Fortunately, an attorney can provide the guidance needed to successfully complete a commercial real estate deal in the Golden State.
Source: bisnow.com, “San Diego Life Science Industry Leaps Ahead, Real Estate Benefits“, Dees Stribling, April 19, 2018