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New York

Hospitals rapidly expanding across the city

From left: 1 Pierrepont Plaza, the Hutcheson Medical Center, and a rendering of Memorial Sloan-Kettering’s planned facilities
From left: 1 Pierrepont Plaza, the Hutcheson Medical Center, and a rendering of Memorial Sloan-Kettering’s planned facilities

With billions of Federal dollars pouring into the health care industry, hospitals across the city and its outer boroughs have experienced unprecedented growth in 2012, leading to a jump in leasing activity, according to the New York Observer. Memorial Sloan-Kettering, Mount Sinai Hospital, Montefiore Hospital and Inventa Health were a few among more than a dozen hospitals and medical centers to expand their footprints this year, and brokers and analysts expect the trend to continue.

“The health care industry is the 800-pound gorilla in the house,” Michael Berne, managing director of Lee & Associates’ senior housing group. “It’s a key topic for real estate folks in New York City, as traditional owners start to realize the potential in health care.”

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In September, Memorial Sloan-Kettering Cancer Center and the City University of New York made a $215 million deal with the city for the construction of two new science and medical facilities at 525 East 73rd Street on the Upper East Side; Sloan-Kettering made plans to construct a 750,000-square-foot cancer care facility; and CUNY Hunter College arranged to build a 336,000-square-foot Science and Health Professions building.

In October, Montefiore Medical signed a 16-year lease with Simone Development for a new 280,000-square-foot building at Hutchinson Metro Center and in April, Sinai Hospital—Mount Sinai Brooklyn Heights Medical Group—leased the 17th and 18th floors at 1 Pierrepont Plaza in Downtown Brooklyn, for a total of 75,060 square feet. [NYO] —Christopher Cameron