2777 East Camelback Road, Suite 230 | Phoenix, Arizona 85016 | Phone: 480-994-8155 - map
Displaying items by tag: Medical Office Market Overview
Healthcare Real Estate Market Overview | First Quarter 2013
GPE Healthcare Investment Group Healthcare Real Estate First Quarter 2013 Prepared by GPEHealthcareInvestmentGroup.com Medical Office Lease Activity The leasing market for medical office space in the Valley for the First Quarter, 2013 is reporting a decrease in the average lease rate from approximately $22.00 per square foot, Full Service, in the Fourth Quarter, 2012 to $21.15 per square foot, Full Service, this Quarter; which consists of 345 buildings over 20,000 square feet with a total of 13,824,919 rentable square feet. Rental rates are remaining flat and tenants still expect concessions such as one month of free rent for each year of the Lease Term. Vacancy rates are holding steady at approximately 30% and have for the past few recent Quarters. Lease and vacancy rate indicators are likely to remain flat for the most part as hospitals and healthcare organizations prepare for the 2014 implementation of the Affordable Care Act (ACA). Many healthcare providers are still trying to understand its impact to their practice when it is implemented and are waiting to make long-term decisions such as a lease or sale.
Market Overview
Kathleen M Morgan, CCIM
480-994-1798
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Trisha A Talbot, CCIM
480-423-7916
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Julie A Johnson, CCIM
480-423-7933
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Source: CoStar
Source: CoStar
GPE Healthcare Investment Group Medical Office Market Overview Phoenix Metroplitan Area | Fourth Quarter 2012 Prepared by GPEHealthcareInvestmentGroup.com Lease Activity The leasing market for medical office space in the Valley consists of 334 buildings over 20,000 square feet for a total of 13,388,375 rentable square feet. The market indicators for 2012 have remained fairly consistent since the First Quarter 2012, showing that 2012 has been a relatively flat market. However, these indicators also show the market positioning for improvement heading into 2013. The vacancy rate has held steady at approximately 30% in 2012 and is expected to decrease in 2013. The average lease rental rate has also remained steady throughout the year, ending in the Fourth Quarter 2012 at just under $22.00 per square foot, Full Service.
Kathleen M Morgan, CCIM
480-994-1798
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Trisha A Talbot, CCIM
480-423-7916
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Julie A Johnson, CCIM
480-423-7933
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Source: CoStar
Source: CoStar
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GPEHealthcareInvestmentGroup.com | |||
Lease Activity | |||
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Vacancy Rate:
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Kathleen M Morgan, CCIM
Trisha A Talbot, CCIM
Julie A Johnson, CCIM
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GPEHealthcareInvestmentGroup.com |
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Scottsdale Submarket |
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Current Snapshot of Area Statistics |
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*Exhibit A **Exhibit B |
Medical Office Market Report for Phoenix Metropolitan Area | First Quarter 2012
Overview
1st Quarter 2012 continues to demonstrate that there are tremendous opportunities in this market for an investor or owner/user to purchase medical office product at a price per square foot well below replacement value. There are strong indicators that the economy is in recovery from the Great Recession. Activity continues to increase for both medical office leasing and sales. The goal now is to have positive absorption in leasing and for the price per square foot to increase on the sales end. Read more...
MEDICAL OFFICE MARKET OVERVIEW - Third Quarter 2011
In the Third Quarter 2011, medical office sales transactions demonstrate that investors are recognizing opportunities in acquiring medical office properties, both as investors and owner/users. There are still many significant distressed transactions affecting the market, representing 40% of all sale transactions.
The medical office leasing market economics are holding relatively steady in terms of lease rate and vacancy from the previous two Quarters; however, investors would like to see an increase in the rates and decrease in vacancy. The net absorption for the Third Quarter 2011 is negative 13,617 square feet, up from a negative net absorption of 36,001 from the Second Quarter 2011, for a total year-to-date net absorption of negative 49,618. The net absorption for Third Quarter 2011 is comparable to a year ago of negative 11,975 square feet.