Arrival of Research Giant Scripps Could Push Boca Raton Real Estate Prices Even Higher

A piece of land once owned by IBM helped turn Boca Raton into a wealthy enclave of business elites. It may transform the city and surrounding areas yet again if it becomes home to Scripps Florida, a leading scientific research institute headquartered in La Jolla, California.

The South Florida Sun-Sentintel reports that local business owners, developers, real estate experts and city officials concur on the impact this would have. The property surrounding the proposed campus — already extremely valuable, even by South Florida real estate standards — would skyrocket if Palm Beach County officials decide to put Scripps in Boca.

Prosperity is great, but some parcels of Florida real estate are getting so expensive that there are clear drawbacks. Real estate consultant Ben DeVries of Palm Beach Gardens said the land surrounding the proposed campus could jump in value by up to 100 percent within the next five years if Scripps Florida matches its success in La Jolla. Using a music industry analogy, Boca Raton Mayor Steven Abrams told the Sun-Sentinel that the land is already gold and will “go platinum” with Scripps next door.

Boca Raton’s Planning and Zoning Board unanimously approved a Scripps’ site plan Thursday, and the city council plans to vote on it at a special meeting Monday. County commissioners must decide between three sites Tuesday to replace the Mecca Farms orange grove, which saw construction stopped last year by a federal judge. Jupiter, Palm Beach Gardens and Boca Raton each submitted plans with the hopes of landing the biomedical research giant — which will yield roughly $600 million in state and county money.

The Florida Research Park property in Palm Beach Gardens is an industrial park on the Bee Line Highway, miles from urban congestion. At the Abacoa development in Jupiter, Scripps’ main headquarters would be on 70 acres of a currently undeveloped 683-acre parcel across the road from Florida Atlantic University. Boca Raton’s proposed site is adjacent to Interstate 95, near two of the state’s largest office parks and other rampant development.

Competitors to the Boca Raton real estate proposal are quick to point out that land prices will present a problem if Scripps goes to the city. Anita Mitchell, a lobbyist for the Florida Research Park, speculates that land would fetch $1 million an acre, which could scare off biotech startups — something that Gov. Jeb Bush wants to see sprout up around Scripps. Land at the research park, by comparison, could be about 50 percent less.

Ted Chiaccia, president of the Realtors Commercial Society of Palm Beach County — the commercial arm of the county’s Realtor association — agrees that small businesses could be effectively priced out of the market. All the support services won’t be able to afford to set up near the proposed campus.

“It would drive the rental price astronomically,” Chiaccia said.

Still, for business owners like Steven Elinson, operating partner of 5-Spice Asian Street Market (a new Asian eatery), and Gerald Berson, who co-owns the nearby Shoppes of Blue Lake, bringing Scripps in to Boca could mean a big financial boost. The land’s value is hardly news among area residents and developers. Last year, Boca Raton approved a residential project on six acres at Spanish River Boulevard and Military Trail, adjacent to the proposed campus.

Since then, Rick Coffin of the Herity Group sold the parcel to Kolter Communities, which plans to put 45 estate villas on the land.

“In hindsight, man, I just wish we would’ve kept the property,” Coffin said.

The Greater Boca Raton Area Chamber of Commerce believes nearby businesses have a lot to look forward to if the project ends up in Boca Raton. From their standpoint, Scripps could bring Boca Raton back to the future, in the words of one city official. The city would likely see a situation similar to when IBM was in full swing, with the economic benefits trickling down to everybody who lives and works in the area.

Both residential and commercial real estate in South Florida are pricey as it is. Wherever it lands, the arrival of a successful research institution will likely fuel heavy price appreciation in the vicinty, even as most the region is expected to level off this year. Bottom line: With an economic force of this magnitude, the benefits outweigh any factors that might decrease demand, such as an increase in Florida home loan rates.