Date: Tuesday, January 24, 2012, 1:34pm EST
Summary: Stable commercial properties with consistent, low risk dividends are in high demand among conversative investors. The commercial property that most closely fits this description in this economy is the medical office building (aka, MOB).
While written for the Atlanta market, Savannah's medical community is no joke either.
Key Quotes:
"The strength and credit of the physician practice group tenants, historically low turnover and consistent patient base requiring medical services lends to an inherently strong degree of stability. Now, fast forward and infuse equal doses of the ever-evolving world of health care legislation reform, new trends in practice group and hospital consolidation and other anticipated changes in health care delivery models — and you have all the ingredients to attract major interest in MOB investment by sophisticated investors."
"Hospitals have always been capital intensive operations and MOB development has likewise always been a strategic proposition. Growth has been, and will continue to be, carefully tailored to the key drivers and sources of health care services: physicians and the ultimate recipients (patients). Much uncertainty remains in this evolving healthcare landscape."
"MOB owners and investors must maintain flexibility, as doctors continue to seek reduced occupancy costs and large up front economic leasing packages. Nonetheless, these are exciting times for all those involved in medical oriented commercial real estate."
Read the full article at A prescription for Atlanta commercial real estate investment
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
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