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Medical Office Buildings: Remedy for an Ailing Market

Published Wednesday, September 01, 2004

Developers and investors are discovering that health care real estate may be just what the doctor ordered for a slumping real estate market. The demand for healthcare real estate — namely medical office buildings — has remained strong despite skyrocketing vacancies in the national office market. Occupancy rates for medical office space top 90%, sources say, thanks in part to long-term leases and minimal turnover among physician tenants. In contrast, the traditional office market has struggled with a vacancy rate of about 16.6% nationally for the past year, reports CB Richard Ellis. “In the last two years, the ...

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