Editor’s Note: The WRAL TechWire “Future of Work” series, supported by commercial real estate firm JLL and other partners, concludes this week, with a look ahead to the future of work and the future of the Triangle. 

So far, the Future of Work series took an in-depth look at the demand for land, which can now be described as “insatiable,” while developers look to shore up their land positions.  That’s especially the case in the industrial sector, the topic of the special report and in-depth Q&A, and, increasingly, the life science and biopharmaceutical sector, which the series investigated last week.  Join a WRAL TechWire LinkedIn Live discussion on Tuesday, May 24 at 11 a.m. with Brett Cox, research manager at JLL, to discuss the latest trends and the future of commercial real estate in the Triangle.  

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RALEIGH – Living and working in the Triangle, right now, is really exciting, Ryan Combs, the executive director of the Research Triangle Regional Partnership, told WRAL TechWire.

And the region’s future is also exciting, noted Combs.  Given the historical context, with the state among the poorest in the nation in the 1950s, said Combs, the Triangle, bolstered by the visionary investment in creating Research Triangle Park, has now “completely transformed this region.”

“The explosive growth we are experiencing today in life sciences and tech can be attributed to that vision and I wish those leaders were around today to see their vision come to full fruition,” said Combs.

Still, the region’s future is exciting, noted Combs.  A full transcript of our conversation, lightly edited for clarity, appears below.

Special report: Triangle must plan for even more growth as businesses follow ‘flight to quality’

Current trends

WRAL TechWire (TW): What trends have emerged in 2020-2022 that are predictive of where the region will be in the future?

Ryan Combs, executive director, Research Triangle Regional Partnership (Combs): There are two specific trends I have seen since the beginning of the pandemic that have created great opportunities for our region and all of North Carolina.

The first is the “migration” of talent from high-cost economic environments like California and the Northeast. According to Carolina Demography, in 2021 the top three states where people moved from were New York, California, and Virginia.

Covid also fast-tracked our ability to work remotely, increasing our access to a more global talent pool without the limitations of geographic boundaries. Employees want a better quality of life and if they can do their job anywhere ,then they are seeking out places like the Triangle.

COVID also exposed the fragility of the supply chain and coupled with international challenges like Russia and China, we see a trend towards onshoring.  Companies are looking for business-friendly states with great access.

From a manufacturing standpoint, that certainly positions the Triangle region perfectly. All of the recent announcements including Vinfast, Toyota, and even Boom in Greensboro will make our region attractive to suppliers feeding these industries.

Special report: In Triangle, demand for life science space outpacing supply

Life science and technology

TW: How much of a role will the life sciences industry play in the future of the region? What about technology?

Combs: The Triangle region is considered the 4th largest life sciences cluster in the United States behind Boston, San Francisco, and San Diego. We now have over 500 life science companies here, we lead the nation in vaccine manufacturing, and have the highest concentration of contract research organizations in the world. While we have been known traditionally as the ideal place for life science manufacturing, we are quickly becoming an attractive location for R&D.

From a tech standpoint, companies like Met Life, Credit Suisse, and Fidelity all figured out years ago what SAS has known for 40 years, that this was a great place to recruit and build tech talent. I firmly believe that our region is the new growth area for tech. The strength of the engineering programs at NCSU, Duke, and A&T have helped us develop homegrown talent to feed into these companies, and with the great migration happening, talent will move here for high-quality tech jobs. Google and Apple created an international buzz for our community, and we saw a huge uptick from companies reaching out to enquire on what is happening here.

There is a synergy between these two industries as well – technology and life science can work together to solve some of our greatest global challenges. We are going to see more growth in these two industries.

Special report: What workers want, now and in the future

Triangle attractiveness

TW: What is the most attractive to companies considering expanding here or relocating here or opening new facilities here?

Combs: Hands down the number one reason companies are choosing this region is our talent. We have over 175,000 annual students enrolled at 12 colleges and universities, and we are producing close to 50,000 graduates a year.

It’s important to note that we are keeping our talent as well with 64% of STEM graduates staying after graduation. In addition, we have 7 community colleges in our 12-county region, with one of the best-customized workforce training programs in the country. I have yet to work with a company that has a specific need that we are unable to match.

In addition to workforce, our low taxes and pro-business environment make the decision easy. The icing on the cake, not the starting point, for most companies are the incentives the state and local governments provide.

Study: Triangle 2nd in US for growth from relocation – that could drive up home prices

Why people move

TW: What is most attractive to people who choose to migrate to the region? Why does the region continue to attract new residents? 

Combs: There are so many reasons people are choosing to move to the Triangle.

Our low cost of living as compared to the markets they are moving from is one of the biggest factors. Great career opportunities are another driving factor (including trailing spouses) and I have heard numerous stories of people moving here without a job. Our quality of life, which includes weather, great education opportunities from K-12 through university, ease of getting around, restaurants, sporting events, and leisure… there is something for everyone. One additional asset that I think is oftentimes overlooked is our airport. We have a conveniently located airport that is easy to navigate and has such great connectivity both nationally and internationally.

One specific area that makes our region unique is the number of communities people can choose from, all with their own distinct characteristics. People love the idea that they can wake up in one community and travel to another for work in 30 minutes. As more and more people move here, we must stay on top of regional planning and make major investments in infrastructure to maintain that quality of life that people want.

Future of Work special report: Across the Triangle, an ‘insatiable demand’ for land

Growth and housing

TW: What can the Triangle do to address the existing housing shortage in the area?

There are some things that we can’t control, like the national backlog for materials that has been a major issue since the pandemic began. Now rising interest rates could also affect the housing situation nationally.

Locally however, there are steps that could be taken to speed up the process and get more houses to market. Local governments should do all they can to reduce red tape and streamline the permit process for home builders. When you speak to builders you hear the same stories, that the zoning, building, and inspection permitting process is unreasonably long and additional manpower is needed to handle the influx of permits being submitted and to perform the inspections to keep the process moving. The government can’t solve the housing shortage, but they could certainly play a major role in speeding up the process.

North Carolina faces shortage of 900,000 housing units by 2030, exec warns

Investing in the region

According to Crunchbase News, North Carolina venture capital investment increased by over 400% between 2016 and 2020, which put us 2nd nationally in the percentage growth. In addition, Silicon Valley Bank in 2020 predicted Raleigh as the #1 city in the country for investment post-covid.

Venture investment is important to note because world-class innovation clusters require three critical aspects: talent from universities, business favorable environments with base companies, and a vibrant startup ecosystem. Now that venture capital is discovering the Triangle this third and final component is clicking into place which will expedite our rise onto the global stage.

Special report: The future of the Triangle’s economy hinges on its spaces

The future of the Triangle

TW: What’s the future of the Triangle look like in 2030? What about in 2050?

Combs: The Triangle Region is regularly compared to Austin and I see so many similarities in what has happened there and what is now happening here. The Austin region grew by over 1 million people in the last 20 years, so based on that alone, I would say we are in store for explosive growth. What makes our region so unique is we are not just limited to one sector, we have one of the most well-rounded eco-systems in the country and we see constant growth in all of these sectors including life sciences, tech, agriculture technology, and clean tech. So much of this growth can be attributed to the strength of our universities both from an R&D perspective as well as a talent and workforce perspective. It is truly an exciting time to be in the Triangle.

This editorial package was produced with funding support from JLL and other partners.  WRAL TechWire retains full editorial control of all content.

The series launched here, and the second report discussed high demand.  Next, the series explored the relationship between work spaces, work places, and the current labor market.  The following weeks, we’ve investigated specific sectors of the real estate market including land development, commercial multifamily properties, industrial space, and life science and biopharmaceutical space. 

More from the series

Special report: What life science companies need to thrive in the Future of Work

Future of Work: Triangle ‘well-positioned’ for more growth of industrial sector

Exclusive Q&A: Resiliency, e-commerce keeping demand for industrial space high

Future of Work report: Developers ‘aggressively trying to shore up land positions’ in Triangle

Perspectives on land development: A ‘Future of Work’ Q&A