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Repositioning to Medical Office
Medical office properties have emerged as a growing sector in the real estate industry in the past few years, attracting a wider range of investors. It survived the worst of the recession and is coming out strong and healthier than other property types in this period of recovery.
There is a migration of capital from the commercial real estate world, which in general has become very soft, to the medical real-estate world. Medical office buildings typically have 70,000 to 100,000 square feet of space housing physician practices and related services. The buildings usually are located on hospital campuses, but sometimes are in satellite locations.
Their growing appeal is based largely on the perception that they are more immune from the economy’s ills than other property sectors, such as commercial-office buildings or apartments.
To be sure, investors are still snatching up commercial buildings that are well-leased despite the current weak conditions. But the medical office sector is considered healthier overall because physicians tend to stay longer and default less than other office tenants, and because medical office rents aren’t as sensitive to the economy.
Stay-tuned for the continuation.
Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.
Commercial Office Buildings, Commercial Real Estate, Commercial Real Estate Investment Strategies, Foreign Investors, Investing Tips, Investment Opportunities, Medical Office, Miami, Property Management, Repositioning to Medical Office
Commercial Buildings, Commercial Office Building, Commercial Real Estate Investment, Commercial Real Estate Investment Advisory, Commercial Real Estate Investment Intelligence, Commercial Real Estate Investment Strategy, Foreign Investments, Foreign Investors, Investing, Investing Tips, Investment Opportunities, Medical Office, Miami, Miami-Dade, Property Management
I read somewhere that only 1% of medical offices are distressed which amounts to about only $200 million in troubled loans compared with almost $20 billion for the 3% of traditional office properties facing trouble.
i guess as long as there are elderly people around needing health services, hospitals and medical offices will stay out sprout.
the population will continue to support the need for med ofc space. population growth in the 55-plus age cohort alone will necessitate an additional 25 million square feet of med ofc space by the end of 2013. so repositioning a stale property to a med ofc would bring your investments back to life.