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

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4 Real Estate Analysis of iJNC Spin-Off Companies Executive Summarv This report presents the real estate needs and preferences of L7NGCH spin-off companies, describes the properties they currently occupy in the Triangle area, and suggests options for Orange County Economic Development (OCED) to attract and retain companies like these. Spin-off companies associated with UNC fall in two market segments. The first is the life- science segment with companies in biotechnology, pharmaceuticals and medical devices. The second segment is broader. It includes IT (hardware, computer services or software), clean/green technology companies and several contract service providers. Life-science companies need sophisticated and specialized facilities. They seek adaptable affordable space that can fulfill multiple uses with expansion potential. Companies cite RTP/Morrisville/Cary as their preferred location. The space needs of the second market segment of tJNC spinoffs are more varied. Few need specialized lab space or access to sophisticated equipment; most occupy "plain vanilla" office space or flex space. UNC spin-off companies occupy either office space or flex space. Class A or Class B office space or high-quality flex space with specialized functions and features located in or near RTP serve the life-science segment. Class B or C office space and lower-quality/less specialized flex space throughout the broader Triangle region serve the IT and clean/green tech 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. The City of Raleigh has relied heavily on NCSU as the fount of startup companies. NCSU has been commercializing innovations through Centennial campus since the 1990s. Maturing companies move from campus to downtown Raleigh or to locations close to NCSU. Most technology companies draw on innovations generated by the engineering and natural resource expertise on campus.