Agenda - 03-13-2012 - 4b - Laserfiche WebLink

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11 The second more diverse segment occupies office space and flex space throughout the Triangle area. Most companies are in RTP, Morrisville, Cary or Durham; several are located in Chapel Hill, Carrboro or Hillsborough. Rental property locations include Eastowne office buildings in Chapel Hill, upstairs space in Carr Mill and the Hillsborough Business Center located in a closed mill west of downtown. Competitive Position of Orange Countv The entrepreneurial scene in the Triangle region has blossomed over the past 15 years driven by adversity as well as opportunity. Early-stage life-science companies want space in Chapel Hill when connections to the campus are vital or advantageous. These companies face long odds to garner funding and usually move away from campus as they grow. When growth occurs, they seek more affordable larger floor plates with specialized facilities, better access to potential employees and proximity to RDU airport. Class A office space in Chapel Hill from Glen Lennox to Interstate 40 could serve growing life-science companies willing to pay rent premiums of at least $5/SF compared to RTP rents currently in the $15-18/ SF range. Most will prefer to be in or near RTP and garner the prestige value of an RTP address or post office box.~ The Hamner Institute, Alexandria Real Estate and other RTP-based property managers are aggressively courting the life-science segment. One possible conclusion is that OECD should not focus on life-science companies beyond their very early stages. Their needs are complex, they are well served, and rental rates are lower in southern Durham County and western Wake County. However, most IJNC spin-offs, especially ones coming out of the Office of Technology Development, are in the life-science sector. The majority have principals associated with UNC Medical School. This segment is simply too large and dynamic to ignore. OCED should try to attract and retain the IT, green/clean tech segment. In fact, the net should be cast more broadly for any iJNC-affiliated startup with substantial growth potential. Attractive companies are ones that export services to external markets, primarily through the internet. Target sectors beyond IT and green/clean tech include web-oriented advertising and public relations, digital music production, unique food products, web-enabled business and professional services and even social ventures with major potential impact. The City of Raleigh has relied heavily on NCSU as the fount of startup companies. NCSU has been commercializing innovations for some time. Many promising ideas are tested on Centennial campus which was developed in the 1990s. Maturing companies move from campus ' Although RTP's employment base and reputation are considerable, the RTF Board realizes that entrepreneurship and innovation are increasingly attracted to urban locations whereas RTP is a suburban location. RTP now wants to compete with downtown Durham which represents a complete role reversal since mid-1990s.