The Real Deal Miami

Medical office sector — a healthy market

By Michael Stoler | April 29, 2009 03:50PM

From the New York Web site: At a time when the value of commercial real estate is
decreasing along with investor interest, one sector which remains
healthy is the medical office market, according to a report from Marcus
& Millichap Real Estate Investment Services. “Parts of the country
have seen underperforming medical office assets,
but the segment is generally holding up better than other product
types,” the report says. “Medical office properties continue to garner
investor demand, partly because of the positive state of the healthcare
industry.” More than 17.5 million square feet of medical office space
was
completed in 2008 and 16 million in 2007, with 13 million projected for
2009, said Alan Pontius, senior vice president and managing director
for Marcus & Millichap’s Healthcare National Office and Industrial
Properties Group in San Francisco.