Western Real Estate Business

AUG 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/1012778

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Page 39 of 42

www.REBusinessOnline.com Western Real Estate Business • August 2018 • 37 Southern Charm The report notes almost one in four R&D jobs in the U.S. is in San Diego, Boston-Cambridge or the Bay Area. Total life sciences employment in San Diego grew by 52 percent between 2001 and 2016, marginally faster than Boston-Cambridge and San Francisco. The region has one of the highest con- centrations of life sciences R&D em- ployment at 60.4 percent, compared to 37.2 percent nationally in 2016. This has made San Diego's R&D sector a major contributor to the region's job growth and, consequently, to demand for lab space. "The demand for life science space has been and continues to surge in San Diego," says Ryan Egli, CBRE's local life science expert. "San Diego is one of the main research and development life sciences markets in the country. The area is rich with research institu- tions, early stage growth companies and big pharma." The nation's third largest R&D clus- ter includes hotbeds like Torrey Pines, which has the highest concentration of lab space at 5.7 million square feet, and University Towne Center (UTC), which has experienced the most growth in its laboratory inventory that now sits at 1.1 million square feet. UTC also led the San Diego laborato- ry submarket in absorption this year with more than 212,572 square feet and 227,640 square feet in leasing ac- tivity, the report notes. This has created a run on sophisti- cated office, lab and R&D space that combines fun and functionality as em- ployers continue to court our nation's best and brightest. "As the pressure to innovate and the unrelenting war for talent contin- ues, progressive life sciences compa- nies are viewing their real estate and facilities as much more than just labo- ratory and office space," says Roger Humphrey, executive managing di- rector and leader of JLL's Life Sciences group. "For these organizations, real estate is becoming a vital part of in- novation strategy by providing the places and spaces that bring the best ideas to life." One of those stand-out companies is NuVasive, which develops minimally invasive spinal solutions. The compa- ny recently engaged Pacific Building Group and Hollander Design Group to undertake a 24,000-square-foot tenant improvement project on its campus, located at 475 Lusk Blvd. in the San Diego submarket of Sorrento Valley. The tenant improvement proj- ect brought about the creation of an open-floor plan with numerous col- laboration areas, including conference rooms, labs, training rooms, quiet rooms, private offices and break areas. The $1.7 million remodel will support NuVasive's employees. It is part of NuVasive's campus expansion, which will also include a new Surgeon Ex- perience Center to be built by Pacific Building Group. The company was founded in San Diego in 1997 as a medical technology startup. The campus has grown to in- clude the annual training of more than 500 surgeons on its products and pro- cedures. This has led to a commitment from NuVasive to increase its R&D spending as a percent of revenue from 5 percent to 7 percent over the next several years as it creates jobs both lo- cally and globally. "Our headquarters expansion re- flects our commitment to the San Di- ego region where medical technology companies and the life sciences indus- try have significantly contributed to the growth for decades," says Greg- ory T. Lucier, NuVasive's chairman and CEO. "Our new facility will of- fer NuVasive the unique opportunity to have our design facility, lab space and product development in one loca- tion where visiting surgeons and our product development teams can col- laborate closely on our newest tech- nologies." "We are eager to continue our in- vestment into the San Diego area with a facility that attracts, retains and grows the high-performing employee talent we have here at NuVasive." The new campus will include an expanded surgeon education lab for on-site surgeon training and educa- tion; a prototype design facility with 3D printing capabilities; a state-of-the art biomedical testing center; and a new amenities building with an onsite café, fitness center and meeting space to accommodate up to 750 attendees. NuVasive will need to take such measures if it wants to remain com- petitive both locally and across the U.S. Just down the street, for example, Vertex Pharmaceuticals recently cel- ebrated the grand opening of its new 170,000-square-foot research facility in Torrey Pines. Built in conjunction with BNBuilders and Alexandria Real Es- tate Equities, the new facility doubles Vertex's former space, accommodat- ing 250 employees. The San Diego site is one of the Boston-based company's three global research hubs. It is also where the biotech company, which focuses on developing transformative medicines for serious diseases, has discovered three breakthrough cystic fibrosis medicines. It is successes like these that have led Dr. David Altshuler, the firm's executive vice president of global re- search and Chief Scientific Officer, to appreciate how valuable it is to invest in employees by reinvesting in their workplace. "Our researchers in San Diego have spent the last 20 years doing what was once thought impossible — develop- ing the first medicines that treat the underlying cause of cystic fibrosis," he says. "This team is a critical part of our global research effort, and the new site will allow us to continue investing in science to bring more transforma- tive medicines to people with serious diseases." The LEED-Gold building dedicates 70 percent of its space to laboratory/ research activities. The building is de- signed with interior walls of glass, al- lowing the laboratories and ongoing scientific research to be seen through- out the facility. The property also in- LAB LIFE IN COASTAL CALIFORNIA LAB from page 1 HCP Life Science Estates is building Phase III of its $720 million, Class A life sciences development project named The Cove at Oyster Point in South San Francisco. Upon completion, The Cove will be a 1-million-square-foot waterfront life science campus with fitness rooms, a bowling alley, bocce ball courts, an amphiteather and hotel space.

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