Issue link: https://viewer.e-digitaledition.com/i/1099654
Medical Office Space Deficit Looms in Key Markets S OME M A JOR U. S. M A R K E T S may face a significant mismatch in 2019 between supply and demand for medical office space, Houston-based real estate firm Transwestern suggests in a recent report, "Medical Office Space Gets Tight." In mid-2018, existing and under- construction medical office space totaled about 110 million square feet, according to Elizabeth Norton, Director of Research and author of the report. However, short-term projections of an additional 150,000 healthcare providers mean demand for space is likely to be at least 150.5 million square feet by the end of 2019. The areas likely to have the toughest time accommodating growth in the num- ber of practitioners: New York, Dallas-Fort Worth, Atlanta, Denver and Miami-Fort Lauderdale. "If all healthcare practitioners added to the economy through 2019 aim to locate within medical office space, absorption of this demand is impossible without a major shift in how people expect and receive healthcare," Norton says in a news release. n — Steve Barrett Steering Clear of Parking Lot Troubles " N O PA R K IN G " I S sensible policy on the dance floor. It's less advisable in medical office building leases. Jeff Grandfield and Dale Willerton, authors of Negotiating Commercial Leases & Renewals FOR DUMMIES, urge potential medical tenants to be sure of what they're getting when it comes to parking lots around properties they're considering. Writing for online publication Healthcare Business Today, they recommend: + Determining whether parking is highly visible to patients, rather than hidden behind or beside the facility + Ascertaining whether spaces are strictly for use by patients and staff or shared with other businesses + Checking on the availability of park- ing close to the entry — a boon to elderly visitors with mobility issues + Getting clarity on whether the land- lord is entitled to convert free parking to paid n — Steve Barrett Location, Location — and Did We Mention Location? G R O W T H I N D E M A N D for outpatient, consumer-friendly care settings is making office-site selection increasingly crucial to healthcare organizations, according to consumer analytics firm Buxton. The Fort Worth, Texas-based company lays out some guiding principles in a recent report, "Healthcare Real Estate: A U.S. Market Update": R e m e m b e r s u p p ly a n d d e m a n d . Determine the need for your services in a given area as well as the existing supply of providers, and evaluate whether the area has the right mix of payer types to make success likely. Consider traffic flow. Suppose your facility plans to book most appointments for early in the day. That could prove problematic if the site is on a side of the road that is difficult for patients to turn in to during morning rush hour. Foster visibility. Assess whether the building is in a location that is likely to attract attention, and be aware of zoning regulations regarding signage. n — Steve Barrett 0 2 0 2❱❱❱❱❱ M E D I C A L R E A L E S T A T E