The Real Deal Miami

Medical office market remains strong

April 15, 2009 09:18AM

Demand has remained consistent for medical office space nationwide even in the midst of a recession, according to the Marcus & Millichap medical office research report for the first half of 2009, released yesterday. But medical office vacancy will likely rise to 12.4 percent this year as people who have lost their jobs or health benefits cut back on medical care. Completion of new office space peaked last year at 17 million square feet, but developers have scaled back this year to 14.1 million square feet. In the Northeast, developers are expected to complete 1.3 million square feet of medical office space this year, according to the report. In the Southeast, developers will deliver 2.3 million square feet of medical office space, nearly 40 percent of it in Florida. TRD