Cushman & Wakefield | Commerce Releases First Study on Medical Office Building Vacancies and Growth in Utah
SALT LAKE CITY—September 25, 2013—Cushman & Wakefield | Commerce (www.comre.com) announced the release of the Q2 2013 Medical Office Snapshot. On campus medical office buildings remain in the highest demand with Class A and Class B building vacancies remaining under 10 percent. Alternatively, off campus medical office buildings continue to have higher vacancy rates than their on campus counter parts.
“The demand for on campus medical office buildings continues to remain strong in the Salt Lake market, with vacancy rates remaining astoundingly low for both Class A and Class B on-campus buildings” said Peter Hanlon, Director – Healthcare Practice Group for Cushman & Wakefield | Commerce. “We are currently experiencing high vacancy rates in Class A off-campus medical office buildings due to the completion of the Hoopes Vision property in Draper and the company’s transition from One Sandy Center. This vacancy rate is projected to decline with both buildings being located in very desirable locations with higher end finishes and space options.”
With the combination of an aging population and one of the highest population growth rates in the nation, projections point to increased demand in the Utah medical office market. This demand will be met with off campus spaces such as the Hoopes Vision building and One Sandy Center. In addition, the new Evergreen Office Plaza adjacent to St. Mark’s Hospital will come on-line the first quarter of 2014.
Design trends for medical office buildings are continuing to evolve with tenants requiring more light, higher ceilings and more efficient use of clinical space. Additionally, clinicians are placing importance on offering an exceptional experience for patients in the common and waiting areas of these spaces. These trends have rendered many properties in the market less desirable and in need of necessary updating and reconfiguration. Class C spaces across on campus and off campus segments continue to have high vacancy rates, pushing these spaces toward renovation in order to compete in the market.
The demand for on campus medical office buildings remains highest in the Salt Lake market. On campus locations maintain higher rents but these spaces tend to be larger and nicer than their off campus equivalents. With the lowest vacancy rates, Class B on campus medical office buildings yield the highest demand currently.
The full Q2 Marketbeat Medical Office Snapshot can be accessed at http://www.comre.com/uploads/reports/p186d13tdb1f5clo3lleorh65k3.pdf
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About Cushman & Wakefield | Commerce
Cushman & Wakefield | Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest. For more information, and for property listings, broker information, market category reports and more visit www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 253 offices in 60 countries, employing more than 15,000 professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $3.7 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.