Davis Innovation Centers Economic Analysis/Innovation Parks Absorption Study
Atlanta BeltLine Inc.
The City of Davis commissioned BAE to conduct an economic analysis to assist in the City’s review of proposals for several Innovation Park projects that had the potential to cumulatively add up to 7 million square feet of tech-related business park space within the city.
These proposals sought to leverage the City’s adjacency to research and development activities at UC Davis that were approaching $1 billion in expenditures per year, along with the innovation and expertise that is tied to UCD’s many internationally ranked academic departments. In addition, a host of UCD institutes and programs spawn entrepreneurial activity based on the intellectual property developed by the University’s faculty, staff, and students.
Historically, the City has not fully embraced the related opportunities for local economic development, due to a limited supply of space for business attraction, retention, and expansion; however, with the solicitation of the Innovation Park proposals, the City engaged the larger community about the how this could be done while preserving key community attributes.
To assist the City with this evaluation process, BAE researched the growth in the City’s tech sector, inventoried the resources available in the local innovation ecosystem, interviewed key businesses regarding their expansion needs, and interviewed investors, regional economic development representatives, and real estate professionals regarding Davis’ key competitive attributes to attract, retain, and grow tech businesses. BAE then conducted case studies of office and R&D building absorption trends in other communities that host research universities.
Based on this research, BAE developed an assessment of Davis’ long-term tech sector growth potential, based on the community’s competitive assets, larger national and international trends that are driving growth in Davis’ key sectors, and comparability to other communities that have similar assets and are similarly situated. BAE also projected the internal market support for ancillary lodging and retail uses that were proposed as part of the Innovation Parks. BAE’s study was used as background analysis to conduct EIR analysis for the Innovation Park proposals.