“Continued Strong Absorption of Medical Office Space and High-Dollar Acquisitions Spur Increased Spec Development”
“The growing shortage of medical office building properties has stimulated a wave of new development, with an estimated 12.2 million square feet of medical office space coming into service this year, 37% above 2015 deliveries.”
“Some developers are beginning to build on a speculative basis in response to diminishing MOB stock…”
“Year-over-year demand growth for medical office is nearly twice as strong as for standard office space and the MOB vacancy rate of 8% at the end of the second quarter is 260 basis points lower than the broader U.S. office market vacancy rate of 10.6%, noted Walter Page, CoStar director of office research.”
Citation & Link to Article: Drummer, Randyl. “Medical Office Enjoying Strong Lease-up, Heightened Investor Demand.” National Commercial Real Estate News. N.p., 17 Aug. 2016. Web. 22 Aug. 2016. http://www.costar.com/News/Article/Medical-Office-Enjoying-Strong-Lease-up-Heightened-Investor-Demand/184233
Link to Picture: http://innovate-arch.com/index.php/1168-medical-office-building