As LA Embraces Mixed-Use Development, Opportunities For Life Sciences Companies Abound

While Los Angeles may not be the first city that comes to mind when people think of life sciences powerhouses, that may soon change. A March 2023 Cushman & Wakefield report found that life sciences employment in the region has risen by 13.4% over the last decade.

Peter Schubert, a partner at architecture firm Ennead Architects, said it is time the LA commercial real estate industry takes notice of the burgeoning life sciences market and the growing demand for lab space in the area.

“While life sciences represent a small percentage of the commercial real estate in LA, there’s an increasing demand for lab space and, even more, for much-desired innovation communities that support science, research and technology,” he said. “These hubs emerge from some of the best academic institutions in the country, their renowned research programs fueled by billions of dollars in funding from the National Institutes of Health. Together, they output some 14,000 life science graduates into the workforce each year.” 

Schubert said having a lab in a bustling city like LA can spark unique opportunities for collaboration with professionals from adjacent disciplines, such as wellness, or from industries outside of the sciences like entertainment. He added that while San Diego and San Francisco are already two of the top three markets for life sciences in the country, the LA market, ranked in the top 10 according to some reports, is gaining traction.

He said that to help plant the seeds of innovation, local life sciences developers have been experimenting with new models of mixed-use development and rejecting the idea of a standalone facility. Instead, they’re opting for pedestrian-friendly, urban campuses — cities within a city — that could be considered a radical notion for a metropolis that’s built around cars, but according to Schubert, it isn’t. 

“The real estate market for the life sciences is following trends established by the tech industries in Playa Vista, creative industries like the Hayden Tract in Culver City and the entertainment industry in Hollywood,” he said. "There are also life sciences hubs in the village-like communities of El Segundo, Pasadena and Thousand Oaks. All are dense and desirable communities where people can live and work, minus one of the nation’s worst commutes.” 

He said that most of these areas are already connected through public transit, and if they are not, plans are in the works to get it up and running soon. The Expo Line — which connects DTLA and USC to Culver City and Santa Monica— provides alternatives to the car and driving development adjacent to the Metro. 

He added that the purple line, once completed, will connect high-end, high-density mixed-use districts from the east to the west; Westwood, Century City, Beverly Hills, Mid-Wilshire and Koreatown will have a direct line to DTLA. Recently, Culver City closed several streets, giving cyclists, pedestrians and public transport the right of way over cars.

“People want to live in close proximity to amenities, such as cafés and restaurants, retail, galleries and boutique offices, while still having access to all that LA has to offer, which is the best of all worlds,” he said. “In fact, the city is a vast network of such hubs, with more and more walkable districts offering an antidote to LA’s car-centric dependency.” 

Along with walkability, these areas have something else that life sciences companies want: buildings ripe for adaptive reuse. He said LA’s trove of 20th-century buildings and light industrial facilities are ready-made for research, with their robust building frames, high floor-to-floor clearances and large floor plates.

“They’re perfect for accommodating labs and for drawing the talent that wants to work there," he said. "Because retrofits are faster than building from scratch, developers can get spaces to market more quickly. Conversions have been further incentivized by a city ordinance that favors renovation and reuse in DTLA. If this ordinance is extended to the whole city, it will add even more appeal for developers looking to invest in this sector.” 

Schubert said that life sciences companies, like all other industries, need to recruit and retain the best talent. This means being close to universities and talent hubs, and also in a location where their employees will have access to art, culture, amenities and other elements that draw young professionals. He said that he believes that LA, moreso than any other city, offers these companies an incomparable level of energy, creativity and talent.

“LA’s naturally creative environment is the consummate petri dish for the exchange of ideas between technology companies, entertainment, the life sciences and creative industries,” he said. “In addition to stimulating the development of more labs, the concentration of life sciences companies might very well spur wellness communities, the perfect complement to a city where the artistic, entertainment and lifestyle industries rub shoulders and flourish.” 

This article was produced in collaboration between Studio B and Ennead Architects. Bisnow news staff was not involved in the production of this content.

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