The Real Deal Miami

Medical office space still in demand despite nationwide commercial leasing woes

December 18, 2009 10:39AM

South Florida is full of empty office space, but not in the medical sector. In one of the few pieces of good news nationwide for the commercial leasing, deals for medical buildings rose 11 percent from last year, according to Chris Bodnar, vice president of CB Richard Ellis’ national Health Care Capital Markets Group. He said the vacancy rate for these buildings is 10 percent, less than two-thirds the 16 percent for all office buildings in the area. There are some simple reasons for this, since people get older and get sick regardless of the health of the economy. One indicator of the overall state of South Florida’s economy is that when medical tenants move to new locations, their vacated space doesn’t get filled, according to Poe Corn, head of Jones Lang LaSalle’s national Healthcare and Real Estate Finance group. [AP via Sun Sentinel]